The Shanghai bank foreign exchange and cross-border renminbi business self-discipline mechanism issued a trial plan for the cross-border RMB settlement facilitation of high-quality enterprises in Lin-gang Special Area on Feb 27.

Bank of China (Shanghai sub-branch) began providing cross-border RMB settlement facilitation services for enterprises in Lin-gang Special Area on the same day.

The release of the trial plan relied on several suggestions on further accelerating the construction of Shanghai international financial center and financial support for the integrated development of the Yangtze River Delta, which was launched released by BOC, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and the Municipal government of Shanghai on Feb 14.

After the implementation of the facilitation measures, the banks will change the way they do banking. They will access customer qualifications in advance and run spot checks and pay return visits after the business instead of checking the authenticity of materials one by one in advance, greatly simplifying the process.

Pama (Shanghai) Machine Tool Co Ltd develops numerically-controlled machine tools and parts in Lin-gang Special Area, and who regularly uses RMB for cross-border trade settlements.

In the past, when handling cross-border payments at banks, enterprises needed to provide background materials such as contracts and invoices, which required a long verification process.

The new plan allowed Pama (Shanghai) Machine Tool Co Ltd to make the cross-border RMB payments by simply providing the RMB settlement and payment instructions for cross-border business.

In the future, the process will be able to be completed directly through online banking.

Angxu (Shanghai) Trade Co Ltd is another early adopter of the plan. Its foreign shareholders have been exporting commodities to China for a long time.

After the plan is released, the enterprise will not need to provide the specific purpose certificate, but will be able to transfer the funds directly from its RMB capital account with the payment instruction.

According to an employee at the company, the capital transfer saves one to two working days.