cocolung

China to abolish 34 banking service fees

by cocolung

 - Wed, Mar 16 2011
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CHINA will abolish 34 kinds of retail banking fees, such as those for opening and closing accounts and for password resets, domestic media reported yesterday.

A circular, jointly issued by the China Banking Regulatory Commission, the People’s Bank of China and the National Development and Reform Commission on Monday, said banks also would be barred from charging management fees for handling salary, pension and housing funds.

The new rules, to take effect from July 1, will help banks “further perform their social responsibilities,” according to the circular.

Analysts say the fee curbs will have limited impact on the overall profitability of Chinese banks.

Charges on personal bank accounts, though often very small, have become a hot target of public critics towards banks in recent years.

For instance, some Chinese banks charge 10 yuan (US$1.50) for resetting personal account passwords.


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