RMB cash is legal tender, and the central bank has cracked down on refusals

Mondo Social Updated on 2024-01-31

RMB cash is the legal tender of the country, and it is the most basic and fundamental payment tool, which is crucial to ensure the public's payment needs under diversified payment conditions, especially in response to emergencies and natural disasters. Optimizing the cash circulation environment and improving the level of cash service is an important embodiment of practicing the political and people's nature of financial work and serving the real economy. However, in recent years, with the popularity and convenience of mobile payment, some business entities have refused or restricted the collection of cash due to cost, safety, efficiency and other considerations, which has affected the normal circulation of cash, damaged the legitimate rights and interests of consumers, and aroused widespread concern and dissatisfaction in the society.

In order to maintain the legal status of the RMB and protect the public's right to choose payment, the People's Bank of China has taken the lead in rectifying the refusal of cash since 2018, and established a consultation mechanism for rectifying the refusal of cash (hereinafter referred to as the consultation mechanism) composed of the central bank, the State Administration for Industry and Commerce, the State Administration of Market Regulation, the China Banking and Insurance Regulatory Commission, the Banking Association and other departments, clarifying policy standards, strengthening publicity and guidance, and punishing the refusal of cash in accordance with the law, and achieved certain results. Since October 2020, the People's Bank of China (PBOC) has issued the Announcement on the Guidelines for RMB Cash Receipts and Payments, which further standardizes the behavior and standards of cash receipts and payments, and carries out in-depth centralized rectification of cash refusals. In the fourth quarter of 2020, the PBOC imposed financial penalties on 16 entities that refused to accept cash and related responsible persons in accordance with the law, ranging from 500 yuan to 500,000 yuan.

The 16 units punished are mainly parks and scenic spots, public service institutions, parking lots, insurance companies, etc., namely: Chinese Life Insurance Co., Ltd. *** Beijing Branch Beiwei Road Business Department, Beijing iKang Guobin Jiuxianqiao Outpatient Department *** Beijing Zhongshan Park Management Office, Tianjin Yangliuqing Ancient Town Tourism Development *** China Land Property Insurance Co., Ltd. *** Baoding Central Branch Company, Datong Youxin Environmental Protection Technology***Shanxi Yujing Property Service***Hangzhou Yuhang Chaoshan Scenic Area Tourism and Vacation***Hangzhou Cross-Lake Bridge Scenic Area Construction Management***Qingtian Xiangyi Property Service***Fuyang Sunrise Property Management***Wuhan Youyouda Property Management***Ping An Property Insurance Co., Ltd. of China*** Ya'an Central Branch, Zhashui Zhongnan Cottage Tourism Development***Yinchuan Shunbo Parking Lot Management***Xinhua Life Insurance Co., Ltd.***Aksu Central Branch.

The above-mentioned penalized units either have a weak sense of law, or a weak sense of service, or are based on commercial purposes, posting "refuse to accept cash" signs, and refuse to accept cash on the grounds of "no contact" and "requirements from superiors", etc., when they are on duty and fully equipped to receive cash. These acts seriously violated Article 4 of the Regulations of the People's Republic of China on the Administration of Renminbi, which stipulates that "Renminbi is the legal tender of the People's Republic of China, and no entity or individual may refuse to accept Renminbi cash", and also violated Article 3 of the Announcement on the Guidelines for Renminbi Cash Receipt and Payment, which stipulates that "no entity or individual shall refuse to accept Renminbi cash for any reason, and shall not restrict or exclude the use of Renminbi cash in any way". According to Article 36 of the Regulations of the People's Republic of China on the Administration of Renminbi, the PBOC shall give a warning to units and individuals who refuse to accept cash in accordance with the law and impose a fine of not less than 10,000 yuan but not more than 50,000 yuan;where the circumstances are serious, a fine of between 50,000 and 500,000 RMB is to be imposed;The directly responsible managers and other directly responsible personnel shall be fined not less than 1,000 yuan but not more than 5,000 yuan;where a crime is constituted, criminal responsibility is pursued in accordance with law.

At present, the rectification of cash refusal is facing a new situation and new situation, and it is necessary to further intensify the work and carry out comprehensive rectification on a regular basis. The central bank requires that from October 2023, the members of the consultation mechanism will jointly carry out a six-month special action to rectify the refusal to accept cash. Member units and all relevant units should focus on people's livelihood and key areas, cooperate closely, do a good job in comprehensive investigation, punishment in accordance with law, warnings, publicity and guidance, and other work, effectively and effectively promote special rectification, further consolidate the consensus on refusal to accept cash in the whole society, and enhance the convenience of the public to use cash. The majority of business entities should strengthen the concept of the rule of law, maintain the legal status of the RMB, operate in good faith, respect the public's right to choose payment, improve services, and jointly create a harmonious cash circulation environment.

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