Diversified payment method doesn't mean refusing cash

The People's Bank of China recently announced punishments for those refusing to accept cash payment in renminbi in the third quarter of 2023, imposing penalties on three units and persons who refused to accept cash. At the same time, it announced a six-month special campaign to ensure nobody refuses payment in cash.

Making payment by scanning QR codes has become increasingly popular in recent years, replacing cash payment for shopping, dining, refueling, buying tickets and other activities. However, this has led to some merchants refusing payment in cash citing higher cost of receiving cash as well as security concerns. There is even a viewpoint that mobile payment has become so commonplace that cash payment has become unnecessary.

Although this sounds like a plausible argument, it actually isn't. As the national legal tender, renminbi paper bill remains the most basic instrument of payment. It is crucial to ensure people's payment demand under diversified payment conditions, especially in response to emergencies and natural disasters. By refusing to accept payment in cash, the merchants or service providers are not only depriving consumers of the choice of payment, but also harming the image of the legal currency. It is also not conducive to creating a market environment that benefits fair competition.

Encouraging diversified payment does not mean saying "no" to cash. It just means giving consumers the right to choose any means of payment they like. Different payment tools have their advantages and can meet different payment needs. While affirming the significance of diversified payments and strengthening the promotion of various payment and settlement methods, merchants should also fully respect consumers' payment and settlement habits, including the habit of using cash payment.

Optimizing the cash circulation environment and improving the cash service level is an important embodiment of the political and people-oriented nature of the country's financial work.

Since 2018, the central bank has taken the lead in cracking down against those refusing cash payment, clarifying policies and standards, and strengthening publicity and guidance, which has achieved certain results. At present, the rectification work is facing new challenges and it is necessary to intensify such efforts on a regular basis.

Relevant authorities should in particular keep a close watch on some key areas related to people's livelihood, carry out a thorough investigation, make public wrongdoings and penalties, and strengthen policy publicity and guidance to raise public awareness that refusing cash payment is illegal.