China Fines KFC and Other Businesses for Rejecting Cash Payments

China’s central bank recently fined seven businesses, including a KFC franchise, for refusing to accept cash payments as part of a broader campaign to ensure that physical currency remains an option amidst the popular shift towards digital payments [para. 1]. The People’s Bank of China (PBOC) levied economic penalties on both companies and individuals, with fines ranging from 3,000 yuan ($414) to 55,000 yuan [para. 2]. The largest fine, amounting to 55,000 yuan, was imposed on a real estate developer in the Inner Mongolia autonomous region [para. 3]. A KFC franchise in Wuxi, Jiangsu province, was fined 30,000 yuan, and the employee responsible was fined an additional 3,000 yuan [para. 4]. Other entities fined included branches of state-owned China Post Group Co. Ltd., PICC Property and Casualty Co. Ltd., and New China Life Insurance Co. Ltd. [para. 5]. Last year, PBOC also fined Beijing branches of China Life Property and Casualty Insurance Co. Ltd. and car dealership Beijing Dashihang Century Motor Sales Co. Ltd. for similar offenses [para. 6].

This crackdown is part of a years-long initiative by the central bank aimed at businesses that refuse to accept cash payments. The campaign was intensified last year as the government aimed to make payment processes more convenient for foreigners to boost the country's appeal post-pandemic [para. 7]. To support this aim, the government has urged banks to install more ATMs and POS machines and pushed for digital payment platforms to streamline registration processes for foreign users [para. 8].