In July 2022, the "Notice of the People's Bank of China on the launch of a large cash management pilot program" was published, and a decision was made to conduct a pilot program for large cash management, to begin with, the pilot regions were selected: Hebei, Shenzhen and Zhejiang, in the future, this program is planned to be expanded to other regions of China.
In each city, the big money management rules are basically that depositors must register if they go to the bank to withdraw money if they exceed a certain amount, but different cities have different thresholds for the amount.
For example, Hebei Province stipulates that if individual users deposit or withdraw more than 100,000 yuan, they must register. For private accounts, the initial amount is 200,000 RMB in Shenzhen and 300,000 RMB in Zhejiang.
As for the contents of the registration, in addition to detailed personal information, the most important thing is to explain the purpose of withdrawing your funds from your Chinese bank account, that is, you will need to convincingly explain to the bank employees what the withdrawn money is used for.
Many people may feel that the bank should not ask how you want to use your money. But really, when it comes to managing large sums of cash, savers really don't have to worry because everyone needs it.
The reason banks require depositors to register when withdrawing money is mainly to protect the safety of depositors.
Due to the fact that many people's money has been stolen in recent years, it is difficult to locate the money, it was not registered before, and scammers used illegal methods to take money from depositors and they could not find it.
Large amounts of cash now need to be registered and the bank can keep track of information such as who took the money, when it was taken and what the money was used for. Many scammers swindle money by withdrawing cash for security purposes. Since they are required to register when withdrawing money, it is much more convenient for defrauded depositors to get their deposits back.
Thus, according to Chinese banks, the management of bank withdrawals only seems redundant, but in fact it is beneficial for depositors, so deposits can become more secure.