The People's Bank of China is seeking public opinions on the "Regulations on RMB Deposit and Lending Interest Rate Management".

On June 5th, the People's Bank of China issued a notice on the public solicitation of opinions on the "Regulations on the Management of RMB Deposit and Loan Interest Rates". The "Regulations" consist of four chapters and twenty-nine articles, specifically stipulating the scope of application, calculation and payment of interest on deposits and loans, interest rate conversion and calculation formulas, responsibilities of the People's Bank of China and its branches, financial institutions, and other matters. Revisions were made to the clauses that received significant market feedback. First, to adhere to the political and people-centered nature of financial work, the penalty interest rules that received significant market feedback were revised. The provisions in the "People's Bank of China's Notice on Issues Related to RMB Loan Interest Rates" regarding penalty interest rates for overdue loans being increased by 30%-50% on the loan interest rate level specified in the loan contract, and penalty interest rates for loans not used for the intended purposes as stipulated in the contract being increased by 50%-100% on the specified loan interest rate level were revised in this regulation as penalty interest rates, calculation methods, and grace periods to be determined through negotiation between the borrower and lender. A definition of improper methods of attracting deposits at high interest rates was added, clarifying that high interest rate attraction includes but is not limited to attracting deposits through illegal means, breaking market rate pricing self-discipline mechanisms, and disrupting deposit market competition order. Second, revisions were made to the interest rate conversion and calculation formulas with many disputes. The rule in the "Notice on RMB Deposit and Loan Interest Calculation Issues" that the daily interest rate equals the annual interest rate divided by 360 was revised in this regulation to the annual interest rate equals the daily interest rate multiplied by 365 (366 for leap years), to promote uniform interest rate calculation rules for financial institutions. Additionally, provisions related to interest rate conversion and calculation formulas in compound interest situations were added as per actual needs. The full text, including detailed regulations on interest rates for RMB deposits and loans, was published on the official website of the People's Bank of China and edited by Jiang Yuanhua.