TLDR; Below is the English-translated version of China’s Regulations on the Supervision and Administration of Non-Bank Payment Institutions (非银行支付机构监督管理条例, State Council Order No. 768), promulgated December 9, 2023 and in effect since May 1, 2024.
If your company processes payments for users in mainland China — or you are a payment service provider weighing whether you can serve Chinese customers directly — these Regulations are the top-level administrative statute that decides whether, and how, you may do so. Issued by the State Council as Order No. 768, they establish the payment business license (支付业务许可) that every non-bank payment institution must hold, and — critically for overseas providers — Article 2 requires an offshore non-bank institution that intends to provide cross-border payment services to users inside China to establish a non-bank payment institution within China, unless the State provides otherwise. They also require domestic transaction processing, fund settlement, and data storage to happen inside China (Article 19), place reserve funds in custody at the central bank or qualifying banks (Article 29), and route personal-information and data violations back to the Personal Information Protection Law (PIPL), the Cybersecurity Law, and the Data Security Law (Article 52), while cross-border transfers intersect the Cross-Border Data Flow Provisions. Because they determine the lawful structure for serving Chinese users, they are one of the first questions an international payments business should raise with qualified counsel.
Regulations on the Supervision and Administration of Non-Bank Payment Institutions (Promulgated December 9, 2023 by Order No. 768 of the State Council; effective May 1, 2024)
Chapter I General Provisions
Article 1. These Regulations are formulated in accordance with the Law of the People’s Republic of China on the People’s Bank of China, the E-Commerce Law of the People’s Republic of China, and other laws, in order to regulate the conduct of non-bank payment institutions, protect the lawful rights and interests of the parties, prevent and defuse risks, and promote the healthy development of the non-bank payment industry.
Article 2. For the purposes of these Regulations, “non-bank payment institution” means a limited liability company or joint-stock company established within the territory of the People’s Republic of China (“within China”) in accordance with law that — other than a banking financial institution — has obtained a payment business license and engages in payment business such as transferring monetary funds on the basis of electronic payment instructions submitted by payees or payers (collectively, “users”).
A non-bank institution outside the territory of the People’s Republic of China (“outside China”) that intends to provide cross-border payment services to users within China shall, in accordance with these Regulations, establish a non-bank payment institution within China, unless the State provides otherwise.
Article 3. In conducting business, a non-bank payment institution shall comply with laws and administrative regulations, follow the principles of security, efficiency, integrity, and fair competition, take the provision of small-amount, convenient payment services as its purpose, safeguard national financial security, and not harm national interests, the public interest, or the lawful rights and interests of others.
Article 4. The supervision and administration of non-bank payment institutions shall implement the lines, principles, policies, decisions, and arrangements of the Party and the State, center on serving the real economy, coordinate development and security, and maintain order of fair competition.
The People’s Bank of China supervises and administers non-bank payment institutions in accordance with law. Branches of the People’s Bank of China perform supervision and administration duties as authorized by the People’s Bank of China.
Article 5. A non-bank payment institution shall comply with the provisions on anti-money laundering and counter-terrorist financing, combating telecommunications and online fraud, preventing and disposing of illegal fundraising, and cracking down on gambling, and shall take necessary measures to guard against unlawful and criminal activities.
Chapter II Establishment, Change, and Termination
Article 6. The establishment of a non-bank payment institution shall be approved by the People’s Bank of China and a payment business license obtained. The name of a non-bank payment institution shall bear the word “payment” (支付).
Without approval according to law, no entity or individual may engage in, or engage in disguised form in, payment business, or use the word “payment” in its entity name or business scope, except as otherwise provided by laws, administrative regulations, or the State. After a payment business license has been cancelled according to law, the institution’s name and business scope may no longer use the word “payment”.
Article 7. The establishment of a non-bank payment institution shall conform to the Company Law of the People’s Republic of China and meet the following conditions:
(1) registered capital conforming to these Regulations;
(2) the major shareholders and actual controller have good financial standing and integrity records, with no major violations of laws or regulations in the most recent 3 years; where a major shareholder or actual controller is a company, its equity structure shall be clear and transparent, with no ownership disputes;
(3) the proposed directors, supervisors, and senior management are familiar with relevant laws and regulations, possess the operational and management capability required to perform their duties, and have no major violations of laws or regulations in the most recent 3 years;
(4) business premises, security safeguards, and business systems, facilities, and technology conforming to the provisions;
(5) a sound corporate governance structure, internal control and risk management systems, an exit plan, and a user-rights protection mechanism;
(6) other prudential conditions provided by laws, administrative regulations, and rules of the People’s Bank of China.
Article 8. The minimum registered capital for establishing a non-bank payment institution is RMB 100 million, and it shall be paid-in monetary capital.
The People’s Bank of China may raise the minimum registered capital provided in the preceding paragraph based on factors such as the institution’s business type, geographic scope of operations, and business scale.
Shareholders of a non-bank payment institution shall contribute capital with their own funds, and shall not contribute with non-self-owned funds such as entrusted funds or debt funds.
Article 9. To apply to establish a non-bank payment institution, an application and materials proving that it meets the conditions in Articles 7 and 8 of these Regulations shall be submitted to the People’s Bank of China.
Article 10. The People’s Bank of China shall, within 6 months of accepting the application, make a decision to approve or not approve. Where it decides to approve, it shall issue a payment business license and make an announcement; where it decides not to approve, it shall notify the applicant in writing and explain the reasons.
A payment business license shall specify the business types and geographic scope of operations that the non-bank payment institution may engage in.
Article 11. After receiving the payment business license, the applicant shall promptly complete registration formalities with the market regulation department and obtain a business license.
Where a non-bank payment institution, after establishment, fails to carry out payment business for 2 consecutive years or more without legitimate reason, the People’s Bank of China shall cancel its payment business license.
Article 12. The principal place of business of a non-bank payment institution shall be consistent with its registered domicile. Where a non-bank payment institution intends to provide payment services to offline contracted merchants in a province, autonomous region, or municipality directly under the Central Government other than where its domicile is located, it shall establish a branch as prescribed and file it with the People’s Bank of China.
For the purposes of these Regulations, “contracted merchant” means a business entity that has signed a payment service agreement with a non-bank payment institution and for which the non-bank payment institution completes fund settlement under the agreement.
Article 13. A non-bank payment institution shall obtain the approval of the People’s Bank of China for the following matters:
(1) changing its name, registered capital, business type, or geographic scope of operations;
(2) changing its domicile across provinces, autonomous regions, or municipalities directly under the Central Government;
(3) changing its major shareholder or actual controller;
(4) changing its directors, supervisors, or senior management;
(5) merger or division.
Where a non-bank payment institution applies to change its name or registered capital, the People’s Bank of China shall make a written decision to approve or not approve within 1 month of accepting the application; where it applies for the other matters listed in the preceding paragraph, the People’s Bank of China shall make a written decision within 3 months of accepting the application. After approval, the non-bank payment institution shall complete the relevant registration formalities with the market regulation department according to law.
Article 14. Where a non-bank payment institution intends to terminate its payment business, it shall apply to the People’s Bank of China to cancel its payment business license. Where a non-bank payment institution applies to cancel its payment business license, or has its payment business license revoked or its payment business permit withdrawn by the People’s Bank of China, it shall, as prescribed, formulate a plan that effectively safeguards user funds and information security, and announce it to users. Where a non-bank payment institution is dissolved, it shall also conduct liquidation according to law, and the liquidation process shall be subject to the supervision of the People’s Bank of China.
Only after completing the payment business license cancellation formalities may a non-bank payment institution complete change or deregistration formalities with the market regulation department.
Chapter III Payment Business Rules
Article 15. Non-bank payment business is divided, according to whether it can receive prepaid funds from the payer, into two types: stored-value account operation and payment transaction processing; however, single-purpose prepaid card business does not fall within the payment business provided in these Regulations.
The specific classification methods and supervision and administration rules for stored-value account operation business and payment transaction processing business shall be formulated by the People’s Bank of China.
Article 16. A non-bank payment institution shall engage in payment business in accordance with the business types and geographic scope of operations specified in its payment business license, and shall not, without approval, engage in other business for which approval is required according to law.
A non-bank payment institution shall not alter, resell, lease, or lend its payment business license, or unlawfully transfer the administrative license in any other form.
Article 17. A non-bank payment institution shall, in accordance with prudent operation requirements, establish, improve, and implement compliance management systems, internal control systems, business management systems, risk management systems, emergency response plans for contingencies, and user-rights protection mechanisms.
Article 18. A non-bank payment institution shall have necessary and independent business systems, facilities, and technology, and shall, in accordance with mandatory national standards and relevant network and data security management requirements, ensure the timeliness and accuracy of payment business processing and the continuity, security, and traceability of payment business.
The business systems of a non-bank payment institution and their backups shall be stored within China.
Article 19. Where a non-bank payment institution provides payment services for domestic transactions, it shall complete transaction processing, fund settlement, and data storage within China.
Where a non-bank payment institution provides payment services for cross-border transactions, it shall comply with the relevant provisions on cross-border payment, cross-border RMB business, foreign exchange administration, and cross-border data flow.
Article 20. A non-bank payment institution shall sign a payment service agreement with the user. A non-bank payment institution shall draft the agreement terms in accordance with the principle of fairness and publicize them in a prominent position at its business premises, on its official website, in its mobile internet applications, and the like.
The payment service agreement shall specify matters such as the rights and obligations of the non-bank payment institution and the user, the payment business process, the transmission path of electronic payment instructions, fund settlement, dispute-handling principles, and liability for breach, and shall not contain content that excludes or restricts competition, or that unreasonably exempts or reduces the liability of the non-bank payment institution, increases the user’s liability, or restricts or excludes the user’s principal rights. For terms in the agreement that are sufficient to affect whether the user agrees to use the payment service, the non-bank payment institution shall draw the user’s attention to them in a reasonable manner and explain them at the user’s request.
Where a non-bank payment institution intends to change the content of the agreement, it shall fully solicit users’ opinions and may make the change only after announcing it for 30 days in the prominent position provided in the first paragraph of this Article. The non-bank payment institution shall reach agreement with the user on the changed agreement content in written form such as a data message.
Article 21. A non-bank payment institution shall establish a continuous and effective user due-diligence system, identify and verify user identity as prescribed, understand the user’s transaction background and risk status, and take corresponding risk management measures.
A non-bank payment institution shall not entrust to a third party the core business and technical services involving fund security, information security, and the like.
Article 22. A non-bank payment institution shall itself complete business activities such as contracted-merchant due diligence, the signing of payment service agreements, and continuous risk monitoring. A non-bank payment institution shall not provide services to merchants that are not lawfully established or that engage in illegal business activities.
Article 23. Where a non-bank payment institution engaged in stored-value account operation opens a payment account for a user, it shall comply with laws, administrative regulations, and the provisions of the People’s Bank of China on payment account administration. The State guides and encourages non-bank payment institutions to cooperate with commercial banks to provide payment services to entity users through bank accounts.
The non-bank payment institutions referred to in the preceding paragraph shall establish and improve business management and risk management systems for the opening, use, change, and cancellation of payment accounts, prevent the opening of anonymous or pseudonymous payment accounts, take effective measures to safeguard the security of payment accounts, conduct abnormal-account risk monitoring, and prevent payment accounts from being used for unlawful and criminal activities.
For the purposes of these Regulations, “payment account” means an electronic bookkeeping carrier opened for a user according to the user’s true intention, used to initiate payment instructions, reflect transaction details, and record the fund balance. A payment account shall be opened under the user’s real name.
No entity or individual may illegally trade, lease, or lend a payment account.
Article 24. A non-bank payment institution engaged in stored-value account operation shall promptly convert the prepaid funds obtained from users into equivalent payment account balances or prepaid fund balances. Users may withdraw the balances they hold as agreed, but the non-bank payment institution shall not pay users any interest or other income related to the balances they hold.
Article 25. A non-bank payment institution shall include necessary information such as the payee’s and payer’s information in the electronic payment instruction, and ensure the integrity, consistency, traceable auditability, and tamper-resistance of the electronic payment instructions it transmits.
A non-bank payment institution shall not forge or alter electronic payment instructions.
Article 26. A non-bank payment institution shall access accounts using secure authentication methods recognized by the clearing institution, banking financial institutions, and other non-bank payment institutions, and shall not, in violation of the provisions, retain sensitive information of bank accounts or payment accounts.
Article 27. A non-bank payment institution shall transfer reserve funds in accordance with the payment instructions initiated by users, except where user reserve funds are frozen or deducted according to law.
For the purposes of these Regulations, “reserve funds” means the prepaid monetary funds received and held pending payment that a non-bank payment institution actually receives in order to handle payment business for users.
A non-bank payment institution shall not, in any form, misappropriate, occupy, or borrow reserve funds, and shall not use reserve funds to provide a guarantee for itself or others.
Article 28. The ratio of a non-bank payment institution’s net assets to the average daily balance of reserve funds shall comply with the provisions of the People’s Bank of China.
Article 29. A non-bank payment institution shall deposit reserve funds at the People’s Bank of China or at a commercial bank meeting the requirements of the People’s Bank of China.
No entity or individual may apply to freeze or enforce against the account in which a non-bank payment institution deposits reserve funds, unless the law provides otherwise.
Article 30. A non-bank payment institution shall process, through a clearing institution designated by the People’s Bank of China, payment business conducted in cooperation with banking financial institutions and other non-bank payment institutions, comply with clearing administration provisions, and shall not engage in, or engage in disguised form in, clearing business.
A non-bank payment institution shall promptly submit true, accurate, and complete transaction information to the clearing institution.
A non-bank payment institution shall handle fund settlement business for users in accordance with settlement administration provisions and take risk management measures.
Article 31. A non-bank payment institution shall properly preserve user data and transaction records. Where a relevant authority, in accordance with the provisions of laws and administrative regulations, inquires into user data, transaction records, or the payment account balance or prepaid fund balance held by a user, or freezes or deducts user funds, the non-bank payment institution shall cooperate.
Article 32. A non-bank payment institution’s processing of user information shall follow the principles of lawfulness, legitimacy, necessity, and good faith; it shall make public its rules for processing user information, expressly state the purpose, method, and scope of processing user information, and obtain the user’s consent, unless laws or administrative regulations provide otherwise.
A non-bank payment institution shall process user information in accordance with laws, administrative regulations, relevant State provisions, and the agreement between the two parties, and shall not collect user information unrelated to the services it provides, and shall not refuse to provide services on the grounds that the user does not consent to the processing of their information or withdraws consent, except where processing the relevant information is necessary for providing the service.
A non-bank payment institution shall keep user information strictly confidential, take effective measures to prevent unauthorized access and the leakage, tampering, or loss of user information, and shall not illegally trade, provide, or disclose user information.
Where a non-bank payment institution shares user information with its affiliates, it shall inform the user of the name and contact information of the affiliate, and obtain the user’s separate consent to the content of the information sharing and the purpose, period, method, and protective measures of the information processing. The non-bank payment institution shall also agree with the affiliate on the above content and the rights and obligations of both parties, and supervise the affiliate’s user-information processing activities to ensure that they are lawful, compliant, and risk-controllable.
Where a user finds that a non-bank payment institution has processed their information in violation of laws, administrative regulations, relevant State provisions, or the agreement between the two parties, the user has the right to require the non-bank payment institution to delete their information and to bear liability according to law. Where a user finds that their information is inaccurate or incomplete, the user has the right to require the non-bank payment institution to correct or supplement it.
Article 33. Where a non-bank payment institution’s relevant network facilities, information systems, and the like are determined according to law to be critical information infrastructure, or where it processes personal information reaching the quantity prescribed by the State cyberspace department, the processing of personal information it collects and generates within China shall be carried out within China. Where it is genuinely necessary to provide such information outside China, it shall comply with laws, administrative regulations, and relevant State provisions, and obtain the separate consent of the user.
The outbound security management of important data collected and generated by a non-bank payment institution within China shall be carried out in accordance with laws, administrative regulations, and relevant State provisions.
Article 34. A non-bank payment institution shall, in accordance with the provisions of relevant price laws and administrative regulations, reasonably determine and make public the charging items and charging standards for its payment business, and clearly mark its prices.
A non-bank payment institution shall, in a prominent position at its business premises and at the key nodes of its business-handling channels, clearly and completely indicate the service content, charging items, charging standards, restrictive conditions, and related requirements, so as to safeguard the user’s right to know and right to choose, and shall not charge any fee that has not been indicated.
Article 35. A non-bank payment institution shall promptly and properly handle disputes with users, perform its primary responsibility for handling complaints, and effectively protect the lawful rights and interests of users.
The State encourages the resolution of disputes between users and non-bank payment institutions through means such as mediation and arbitration.
Chapter IV Supervision and Administration
Article 36. The controlling shareholder and actual controller of a non-bank payment institution shall comply with the provisions on the equity administration of non-bank payment institutions, and shall not be in any of the following circumstances:
(1) evading supervision through means such as holding shares via a special-purpose vehicle or on behalf through others;
(2) harming the lawful rights and interests of the non-bank payment institution or its users through means such as conducting related transactions in violation of the rules;
(3) other circumstances that may have a material adverse effect on the operation and management of the non-bank payment institution.
The same shareholder shall not directly or indirectly hold more than 10% of the equity or voting rights in two or more non-bank payment institutions of the same business type. The same actual controller shall not control two or more non-bank payment institutions of the same business type, unless the State provides otherwise.
Article 37. A non-bank payment institution shall, as prescribed, submit to the People’s Bank of China payment business information, audited financial and accounting reports, operating data statements, statistical data, and other materials related to corporate governance and business operations that the People’s Bank of China requires to be submitted.
Article 38. The People’s Bank of China shall, as prescribed, conduct classified rating of non-bank payment institutions, and implement classified supervision and administration based on the results of the classified rating.
The People’s Bank of China shall, according to law, formulate the recognition standards and supervision and administration rules for systemically important non-bank payment institutions.
Article 39. The People’s Bank of China, in performing its duties according to law, has the right to take the following measures:
(1) conduct on-site inspections and off-site supervision and administration of non-bank payment institutions;
(2) enter premises where suspected unlawful or non-compliant conduct has occurred to investigate and collect evidence;
(3) question the parties and the entities and individuals related to the matter under investigation, and require them to explain matters related to the matter under investigation;
(4) consult and copy relevant documents, materials, and business systems of the parties and the entities and individuals related to the matter under investigation; and seal up or seize documents, materials, and business systems that may be transferred, concealed, or damaged;
(5) with the approval of the head of the People’s Bank of China or of its provincial-level branch, inquire into the account information of the parties and the entities related to the matter under investigation.
In order to guard against risks and maintain market order, the People’s Bank of China may take measures such as ordering correction, conducting regulatory talks, issuing warning letters, and releasing risk warnings to the public.
Article 40. Where the People’s Bank of China performs its duties according to law and conducts an on-site inspection or investigation, there shall be no fewer than 2 persons conducting the on-site inspection or investigation, and they shall produce lawful credentials and enforcement documents. Where there are fewer than 2 persons conducting the on-site inspection or investigation, or they do not produce lawful credentials and enforcement documents, the entity or individual being inspected or investigated has the right to refuse.
Where the People’s Bank of China performs its duties according to law, the entity or individual being inspected or investigated shall cooperate, truthfully provide the relevant documents, materials, and business systems, and shall not refuse, obstruct, or conceal.
Article 41. Where a matter arises that has a material effect on a non-bank payment institution’s operation and development, on the stability and continuity of its payment business, or on the lawful rights and interests of users, the institution shall report to the People’s Bank of China as prescribed.
Where a major shareholder of a non-bank payment institution intends to pledge the equity of the non-bank payment institution, it shall report to the People’s Bank of China as prescribed, and the pledged equity shall not exceed 50% of the total equity of that non-bank payment institution held by that shareholder.
Article 42. A non-bank payment institution shall not engage in monopolistic or unfair competition conduct that impairs the order of fair market competition.
Where the People’s Bank of China, in performing its duties, discovers that a non-bank payment institution is suspected of monopolistic or unfair competition conduct, it shall transfer the relevant leads to the competent enforcement department and cooperate with its investigation and handling.
Article 43. Where a risk event occurs at a non-bank payment institution, the institution shall report to the People’s Bank of China as prescribed.
The People’s Bank of China may, as needed, notify the local people’s government at the place of the non-bank payment institution’s domicile of the risk situation. The local people’s government shall cooperate with the People’s Bank of China in properly carrying out relevant risk disposal work and maintaining social stability.
Article 44. Where a risk event at a non-bank payment institution affects its normal operation and harms the lawful rights and interests of users, the People’s Bank of China may, distinguishing among the circumstances, take the following measures against the non-bank payment institution:
(1) order the major shareholder to fulfill its regulatory commitment to replenish capital;
(2) restrict major asset transactions;
(3) order adjustment of the directors, supervisors, or senior management, or restrict their rights.
Article 45. The People’s Bank of China and its staff shall keep confidential the State secrets, trade secrets, and personal information of which they become aware in the course of supervision and administration work.
Article 46. The People’s Bank of China shall, in accordance with laws, administrative regulations, and relevant State provisions, improve the measures for preventing and defusing risks in the non-bank payment institution industry, and defuse the risks of non-bank payment institutions.
Chapter V Legal Liability
Article 47. Whoever, without approval according to law, establishes a non-bank payment institution without authorization, or engages in, or engages in disguised form in, payment business, shall be banned by the People’s Bank of China according to law, and its illegal gains shall be confiscated; where the illegal gains are RMB 500,000 or more, a fine of not less than 1 time but not more than 5 times the illegal gains shall also be imposed; where there are no illegal gains or the illegal gains are less than RMB 500,000, a fine of not less than RMB 500,000 but not more than RMB 2 million shall be imposed, singly or concurrently. Its legal representative or principal person in charge, the directly responsible person in charge, and other directly responsible persons shall be given a warning and fined not less than RMB 100,000 but not more than RMB 500,000. The local people’s government shall cooperate.
Article 48. Where a party, by improper means such as deception, false capital contribution, circular capital injection, or using non-self-owned funds to contribute capital, applies to establish, merge, or divide a non-bank payment institution, or to change a non-bank payment institution’s major shareholder or actual controller, and the application has not been approved, the applicant may not apply again or participate in applying for the relevant license within 1 year. Where the application has been approved, it shall be ordered to terminate the payment business, the relevant license shall be revoked, the illegal gains shall be confiscated; where the illegal gains are RMB 500,000 or more, a fine of not less than 1 time but not more than 5 times the illegal gains shall also be imposed; where there are no illegal gains or the illegal gains are less than RMB 500,000, a fine of not less than RMB 500,000 but not more than RMB 2 million shall also be imposed; and the applicant may not apply again or participate in applying for the relevant license within 3 years.
Article 49. Where a non-bank payment institution violates these Regulations and is in any of the following circumstances, it shall be ordered to make corrections within a time limit, be given a warning or public censure, and its illegal gains shall be confiscated; where the illegal gains are RMB 100,000 or more, a fine of not less than 1 time but not more than 5 times the illegal gains may also be imposed; where there are no illegal gains or the illegal gains are less than RMB 100,000, a fine of not more than RMB 500,000 may also be imposed; where the circumstances are serious or corrections are not made within the time limit, part of its payment business shall be restricted or it shall be ordered to suspend business for rectification:
(1) failing to use the word “payment” in its name;
(2) failing to establish, improve, or implement the relevant compliance management systems, internal control systems, business management systems, risk management systems, emergency response plans for contingencies, or user-rights protection mechanisms;
(3) its relevant business systems, facilities, or technology failing to conform to administrative provisions;
(4) failing to submit or preserve relevant information or materials, or to publicize relevant matters or perform reporting requirements, as prescribed;
(5) changing, without approval, the matters provided in items (1), (2), or (4) of the first paragraph of Article 13 of these Regulations, or failing to establish a branch as prescribed.
Article 50. Where a non-bank payment institution violates these Regulations and is in any of the following circumstances, it shall be ordered to make corrections within a time limit, be given a warning or public censure, and its illegal gains shall be confiscated; where the illegal gains are RMB 500,000 or more, a fine of not less than 1 time but not more than 5 times the illegal gains shall also be imposed; where there are no illegal gains or the illegal gains are less than RMB 500,000, a fine of not more than RMB 1 million shall also be imposed; where the circumstances are serious or corrections are not made within the time limit, part of its payment business shall be restricted or it shall be ordered to suspend business for rectification, up to revocation of its payment business license:
(1) failing to sign payment service agreements with users, handle fund settlement, or take risk management measures as prescribed;
(2) failing to complete business activities such as contracted-merchant due diligence, the signing of payment service agreements, and continuous risk monitoring as prescribed;
(3) entrusting core business or related technical services to a third party for processing;
(4) opening payment accounts in violation of the rules, or — other than the illegal trading, leasing, or lending of payment accounts — payment accounts being used in violation of the rules;
(5) paying users interest or other income in violation of the rules, or retaining sensitive information of bank accounts or payment accounts in violation of the rules;
(6) failing to deposit or transfer reserve funds as prescribed;
(7) failing to comply with the relevant provisions on cross-border payment;
(8) failing to terminate payment business as prescribed.
Article 51. Where a non-bank payment institution violates these Regulations and is in any of the following circumstances, it shall be ordered to make corrections within a time limit, be given a warning or public censure, and its illegal gains shall be confiscated; where the illegal gains are RMB 500,000 or more, a fine of not less than 1 time but not more than 5 times the illegal gains shall also be imposed; where there are no illegal gains or the illegal gains are less than RMB 500,000, a fine of not less than RMB 500,000 but not more than RMB 2 million shall also be imposed; where the circumstances are serious or corrections are not made within the time limit, part of its payment business shall be restricted or it shall be ordered to suspend business for rectification, up to revocation of its payment business license:
(1) altering, reselling, leasing, or lending its payment business license, or unlawfully transferring the administrative license in any other form;
(2) conducting payment business beyond the approved business type or geographic scope of operations;
(3) providing payment business channels for entities or individuals illegally engaging in non-bank payment business;
(4) changing its major shareholder or actual controller, or carrying out a merger or division, without approval;
(5) misappropriating, occupying, or borrowing reserve funds, or using reserve funds to provide a guarantee for itself or others;
(6) interrupting payment business without legitimate reason, or failing to process electronic payment instructions as prescribed;
(7) conducting, or conducting in disguised form, clearing business;
(8) refusing, obstructing, or evading inspection or investigation, or making false reports of, concealing, or destroying relevant documents, materials, or business systems.
Article 52. Where a non-bank payment institution processes user information or business data in violation of these Regulations, punishment shall be imposed in accordance with the Personal Information Protection Law of the People’s Republic of China, the Cybersecurity Law of the People’s Republic of China, the Data Security Law of the People’s Republic of China, and other relevant provisions.
Article 53. Where a non-bank payment institution fails to establish a user due-diligence system or perform the relevant obligations as prescribed, or has engaged in foreign exchange or price violations, and where any entity or individual illegally trades, leases, or lends a payment account, the competent authority shall impose punishment in accordance with the relevant laws and administrative regulations.
Where a non-bank payment institution engages, without approval, in other business for which approval is required according to law, punishment shall be imposed in accordance with the relevant laws and administrative regulations.
Article 54. Where the controlling shareholder or actual controller of a non-bank payment institution violates these Regulations and is in any of the following circumstances, it shall be ordered to make corrections within a time limit, be given a warning or public censure, and its illegal gains shall be confiscated; where the illegal gains are RMB 100,000 or more, a fine of not less than 1 time but not more than 5 times the illegal gains shall also be imposed; where there are no illegal gains or the illegal gains are less than RMB 100,000, a fine of not less than RMB 100,000 but not more than RMB 500,000 shall also be imposed:
(1) evading supervision through means such as holding shares via a special-purpose vehicle or on behalf through others;
(2) harming the lawful rights and interests of the non-bank payment institution or its users through means such as conducting related transactions in violation of the rules;
(3) violating the provisions on the equity administration of non-bank payment institutions.
Where a major shareholder of a non-bank payment institution violates the provisions of these Regulations on equity pledge and other equity administration, punishment shall be imposed in accordance with the preceding paragraph.
Article 55. Where punishment is imposed on a non-bank payment institution in accordance with these Regulations, depending on the specific circumstances, the directors, supervisors, senior management, and other persons who bear direct responsibility may also be given a warning or public censure and fined, singly or concurrently, not less than RMB 50,000 but not more than RMB 500,000.
Where a non-bank payment institution violates these Regulations and the circumstances are serious, the directors, supervisors, and senior management who bear direct responsibility may be prohibited from serving as directors, supervisors, or senior management of a non-bank payment institution for a certain period or for life.
Article 56. Where a staff member of the People’s Bank of China is in any of the following circumstances, a sanction shall be imposed according to law:
(1) reviewing and approving, in violation of the provisions, matters such as the establishment, change, or termination application of a non-bank payment institution;
(2) divulging State secrets, trade secrets, or personal information of which they became aware in the course of performing their duties;
(3) other conduct constituting abuse of power or dereliction of duty.
Article 57. Whoever violates these Regulations and constitutes a crime shall be held criminally liable according to law.
Chapter VI Supplementary Provisions
Article 58. The payment and clearing industry self-regulatory organization shall carry out industry self-regulatory management activities according to law, subject to the guidance and supervision of the People’s Bank of China.
The payment and clearing industry self-regulatory organization may formulate industry self-regulatory norms for non-bank payment institutions.
Article 59. The transitional measures for non-bank payment institutions that were established before these Regulations came into effect in accordance with the relevant provisions shall be prescribed by the People’s Bank of China.
Article 60. These Regulations shall take effect on May 1, 2024.
Primary source: 《非银行支付机构监督管理条例》（国务院令第768号）, full text published by the State Council: gov.cn. The People’s Bank of China subsequently issued implementing rules (PBOC Order No. 4 of 2024), the Detailed Rules for the Implementation of the Regulations on the Supervision and Administration of Non-Bank Payment Institutions, which take effect from their own date and are not reproduced here.
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