Chinese banks reduced online transaction limits for personal accounts: limits on online transfers in Chinese banks

Banking institutions are constantly strengthening the management of online channels for personal accounts.

Recently, China Everbright Bank, Shanghai Pudong Development Bank, Agricultural Bank of China and many other banks have successively issued announcements to reduce transaction limits related to personal accounts, including online transfer limits and online payment transaction limits.


Regarding the reason for the adjustment, the aforementioned bank customer service staff generally stated that it was done mainly to prevent fraud in the telecommunications network. According to industry insiders, the general trend for banks is to increase the management of personal accounts and cards. In the future, banks can achieve a dynamic balance between business risk avoidance and user experience through improved risk controls and fintech.


China Everbright Bank has basically adjusted the online payment transaction limit. China Everbright Bank said in an announcement that from May 12, 2022, the online payment transaction limit will be adjusted. Users use a variety of online transaction channels and make payment transactions through the China Everbright Bank payment platform, the single default limit and single transaction limit have been increased to 10,000 yuan.


The Agricultural Bank of China has mainly adjusted transfer limits for personal online banking and mobile banking of some users.


Shanghai Pudong Development Bank's Chengdu, Changsha and Fuzhou branch has successively issued announcements to adjust the unmatched business limit of personal bank checking accounts, stating that they will adjust the unmatched business limit of personal bank checking accounts accordingly according to account usage.


In consultation with the bank's customer service, it has been found that the restrictive measures taken by many banks for online business depend on the actual use of personal accounts and the respective policies of the region in which they are located to determine the specific limit and whether it is restricted.


For example, the Agricultural Bank of China customer service said that the limit adjustment is different in different provinces and regions, and the specific adjustment of different personal accounts in the same province is also different. Take Hangzhou as an example, if there is no transaction list for individual stock buyers in the electronic channel for more than 12 months, the adjusted external transfer limit can be 10,000 yuan per day; for example, in Fuzhou, if individual stock buyers have not used electronic channels for 2 years, then the daily limit can be 5,000 yuan.


In addition, the customer service of Shanghai Pudong Development Bank said that there are two situations in Fuzhou related to the non-counter limit limit: first, starting from September 28, 2021, each branch must open a new personal bank account immediately after opening through a transaction, where included in the daily limit of 5,000 yuan for non-opposite transactions; Secondly, customers who have no transaction records for half a year are V0 customers with transactions and balances of less than 100 RMB and V1 customers with balances of less than 1,000 RMB of the customer.


"Incoming and outgoing account amount is abnormal for a long time, accounts that do not use account transactions for a long time or are suspected of money laundering may be the target of the bank's limit, which is a means for the bank to strengthen its own risk management" .


In recent years, banks have continuously improved their personal account management, from clearing "sleeping accounts" to starting clearing "extra accounts per person", and then upgraded to include bank cards with balances of less than 10 yuan in dormant accounts. In particular, in response to telecommunications fraud, a number of banks have launched a "broken card" operation since last year.


The industry generally believes that the bank's lowering of the transaction limit for online business-related personal accounts is another improvement in bank management and control of personal accounts in relation to risky events such as telecom fraud.


At present, online banking services such as online transfers and online payments are widely used by users. For banks, strengthening account controls can provide a line of defense for users to help prevent telecom fraud to some extent. However, from the point of view of consumers, this may cause some inconvenience in the daily consumption and transactions of users.


“The general trend will be to strengthen the management of user accounts and cards,” said the co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University International Business School. However, how to strike a balance between customer convenience and funds security will be a key issue for banks.