(ECNS) -- China's central bank has urged banks to stop charging fees for online transfers amid rapid growth of Internet-based payment services, or they will face fines after April 1, Guangzhou Daily reported.
The People's Bank of China said in a statement on Friday that it supports banks to offer free transfer of money under a certain amount via the Internet or cell phone.
Most Chinese banks charge their customers fees to transfer funds between banks. Now, about 70 banks have already made moves to facilitate the money transfer with zero cost. Bigger state-owned banks like the Industrial and Commercial Bank of China are also updating their fee charging policies, according to the report.
Xi Zhong, director of the central bank's Payment System Department, said it will charge banks if they fail to lower or abolish fees from April 1.
The China Merchants Bank decided to scrap fees for money transfers via its online banking service, effective on September 21, 2015. The decision led to similar acts by regional commercial banks like the Bank of Ningbo and the Bank of Shanghai.
Insiders say more banks followed suit to bring more benefits to customers amid the competition of booming third-party online payment tools, such as PayPal-like Alipay of e-commerce giant Alibaba.
