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	NOTICE OF THE PEOPLE'S BANK OF CHINA REGARDING RELEVANT ISSUES ON OPENING SPECIAL RMB CASH ACCOUNT FOR SETTLEMENT AND SALE OF FOREIGN EXCHANGE BY FOREIGN-FUNDED BANKS

	(No.180 [2003] of the People's Bank of China promulgated on September 2, 2003 and implemented as of the same day)


SUBJECT : FOREIGN-FUNDED BANKS; RMB CASH ACCOUNT
ISSUING DEPARTMENT : THE PEOPLE'S BANK OF CHINA
ISSUE DATE : 09/02/2003
IMPLEMENT DATE : 09/02/2003
LENGTH : 716 words
TEXT :

In accordance with the "Provisional Measures for the Settlement and Sale of Foreign Exchange by Designated Banks "(Decree of the People's Bank of China No.4, 2002), the "Measures for RMB Bank Settlement Accounts"(Decree of the People's Bank of China No.5, 2003), the "Detailed Rules for the Implementation of the Settlement, Sale and Payment of Foreign Exchange by Foreign-funded Banks" (No.202 [1996] of the People's Bank), in order to ensure the business of settlement and sale of foreign exchange by foreign-funded banks which have had the qualification for operating the business of settlement and sale of foreign exchange but are not allowed to operate the RMB business on the rails and regulate the administration of special RMB cash account of settlement and sale of foreign exchange by foreign-funded banks, the present Notice is circulated as follows:

I. Those foreign-funded banks that have had the qualification for operating the business of settlement and sale of foreign exchange but are not allowed to operate the RMB business (hereinafter referred to foreign-funded banks) are allowed to open special RMB deposit accounts for the settlement and sale of foreign exchange (hereinafter called special RMB cash account for the settlement and sale of foreign exchange) in the commercial banks which can operate RMB business.

II. Foreign-funded banks shall get the permission of local branches and sub-branches of the People's Bank of China. It can choose one of the commercial banks in its residence and open a special RMB account for the settlement and sale of foreign exchange upon the strength of the document of permission.

III. Within 5 days after opening a special RMB account for the settlement and sale of foreign exchange, foreign-funded banks shall report to local branches and sub-branches of the People's Bank of China about account-opening data, such as its account number, name of the commercial bank, the date of opening, etc. At the same time it shall put these data on record in the local branches and sub-branches of State Administration of Foreign Exchange.

IV. The income and payout scope of special RMB account for settlement and sale of foreign exchange is defined as follows:

Income: RMB cash input arising from operating the business of sale of foreign exchange; funds input from the special RMB account for the settlement and sale of foreign exchange opened in the People's Bank of China.

Payout: RMB cash payout for handling the settlement of Foreign exchange; to be transferred to the special RMB account for the settlement and sale of foreign exchange opened in the People's Bank of China.

V. The transfer and liquidation of RMB funds for the settlement and sale of foreign exchange by foreign-funded banks shall still be handled through the special RMB account for the settlement and sale of foreign exchange opened in the People's Bank of China.

VI. The branches and sub-branches of State Administration of Foreign Exchange shall, according to Articles 8 and 9 of the "Detailed Rules for the Implementation of the Settlement, Sale and Payment of Foreign Exchange by foreign-funded Banks", carry out balance administration on both the special RMB account for the settlement and sale of foreign exchange and the special RMB cash account for the settlement and sale of foreign exchange of foreign-funded banks.

VII. Foreign-funded banks shall use the special RMB cash account for the settlement and sale of foreign exchange in accordance with article 4 of the present Notice and other relevant provisions in the "Measures for the Administration of RMB Settlement Bank Accounts". Foreign-funded Banks may not make use of the account to receive and pay, keep and transfer RMB for any other unit or individual; they may not lend, lease or cross use the special RMB cash account for the settlement and sale of foreign exchange. All of the violating foreign-funded banks shall be punished by the local branches and sub-branches of the People's Bank of China or of State Administration of Foreign Exchange in accordance with the "Measures for the Administration of RMB Settlement Bank Accounts", the "Provisional Measures for the Administration of the Settlement and Sale of Foreign Exchange by Designated Banks", and "the Detailed Rules for the Implementation of the Settlement, Sale and Payment of Foreign Exchange by Foreign-funded Banks".

The present Notice shall be implemented as of the day when it is issued.