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China Fines 7 Businesses Including KFC for Refusing Cash Payments in Effort to Preserve Physical Currency
Updated: May 23
China's central bank fines businesses for refusing cash payments. KFC franchise in Wuxi hit with a 30,000 yuan penalty. Government aims to make cash acceptance more convenient for foreigners.
This action is part of the People's Bank of China's broader campaign to keep physical cash available, despite the growing preference for digital payments.
According to a notice from the central bank, both companies and individuals have faced economic penalties, with fines for businesses ranging from 3,000 yuan ($414) to 55,000 yuan. The largest fine was imposed on a real estate developer in the Inner Mongolia autonomous region.
Among the businesses penalised, a KFC franchise in Wuxi, located in east China's Jiangsu province, was hit with a 30,000 yuan penalty. Additionally, an employee directly responsible for the refusal to accept cash was fined 3,000 yuan. State-owned China Post Group, PICC Property and Casualty, and New China Life Insurance branches were also punished.
This is not the first time that Chinese firms have been fined for rejecting cash payments. Last year, the central bank punished a Beijing branch of China Life Property and Casualty Insurance as well as Beijing Dashihang Century Motor Sales for refusing to accept cash.
The crackdown on firms who refuse cash payments has been going on for several years, but it has recently increased. The Chinese government wants to make it easier for foreigners to make payments, particularly in circumstances involving a high number of outside visitors. This endeavour is part of a larger campaign to restore the country's appeal in the aftermath of the pandemic.
To ensure cash acceptance in a variety of settings, the central bank has encouraged banks to increase the number of ATMs and point-of-sale terminals. Furthermore, digital payment systems have been urged to simplify their registration processes for international customers. These measures are being introduced around the country to promote a balance of digital and traditional payment methods.
China's central bank fines businesses for refusing cash payments
KFC franchise in Wuxi hit with a 30,000 yuan penalty
Government aims to make cash acceptance more convenient for foreigners
Source: NIKKEI ASIA