Chinese Civilians Have Difficulty Accessing Their Savings

Financial media reported on February 23rd that major banks in China now not only make it more difficult for users to apply for a new bank card but also tighten their control on people’s wealth by limiting the amount of money they can transfer. In Communist China’s banking system, accounts are usually divided into two categories: Category I accounts have multiple functions, supporting cash deposits and withdrawals, transfers, consumption and bill payments, and can also be used to purchase financial products for investment and wealth management, while Category II accounts have restricted functions, where transfer transactions are limited by a certain amount. Recently, banking institutions in Beijing determine that the new Class I accounts will also face a limit of RMB 5000, which is just a little over $700 US dollar per day on non-bank transactions, and that is including online and mobile banking, online express payments, POS machines at sales terminals, ATMs, and third-party payment systems Alipay and WeChat. If depositors want to increase the limit, they will need to visit their banks and provide the bank with records of social insurance premium payments or their own credit card records.

Analysts say China has seen a large number of bank branches close earlier this year, showing signs that banks are running low on cash flow and can only cover up Communist China’s growing economic crisis by limiting depositors’ transactions and infringing on their right to dispose of their wealth.