China fines businesses including KFC for refusing cash payments

China’s central bank (PBOC) fined seven businesses, including a KFC franchise, for refusing cash payments, with penalties ranging from 3,000 yuan to 55,000 yuan, the highest targeting a real estate developer in Inner Mongolia, the NIKKEI Asia reported on Sunday.

This move underscores the government’s ongoing campaign to ensure physical currency remains a viable option despite China’s dominance in digital payments.

A KFC branch in Jiangsu province was fined 30,000 yuan, with an additional fine for the responsible employee. Other penalised businesses included branches of state-owned companies like China Post Group and insurance firms.

The crackdown on cash rejection extends a PBOC initiative launched years ago and gained momentum last year.

China is prioritising reviving tourism and attracting foreign visitors, making smooth cash transactions a key focus, especially for potential influx of international travellers.

Beyond the fines, the PBOC is encouraging banks to boost ATM and point-of-sale machine installations. Additionally, digital payment platforms are being urged to simplify registration procedures for foreign users.