China rolls out strict curbs on withdrawals after bank runs

BEIJING: China is imposing checks on large banking withdrawals following fears of bank runs and rising bad debts among the lenders. As per media reports, limits on businesses and individuals withdrawing large amounts of cash, without prior approval, will first be launched as a pilot project in Hebei province, and then extended to other regions, according to the People's Bank of China. The new restrictions require lenders to report withdrawals of upwards of 100,000-300,000 yuan for individuals, and 500,000 yuan for businesses.

There has been mounting fear of bank runs and only last month action had to be taken to avert two bank runs. Last year, the government had seized several banks.

There are reports that many local banks have been unable to pay back customers as large number of people gathered to withdraw their deposits.(IANS)

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