An authorized bank that applies to the Bank for approval to become a Renminbi settlement bank in Taiwan area (hereinafter referred to as“RMB settlement bank”) and to engage in Renminbi clearing and settlement business in Taiwan area (hereinafter referred to as “RMB settlement business”) shall first obtain approval from the regulatory authority in Mainland China Area to engage in RMB clearing and settlement and submit the following documents:
1.Documents evidencing the approval described above; and
2.Documents describing the categories and contents of RMB settlement business and related risk management mechanisms (including its head office’s guarantee to render assistance, assume all payment liabilities and provide liquidity support in the event of liquidity and/or payment crisis).
A RMB settlement bank shall comply with the following rules in addition to the provisions in Article 39 herein:
1.Draw up a template for RMB settlement agreement to be signed with financial institutions, and submit it to the Bank for prior approval.
2.Provide RMB related clearing and settlement services in accordance with the approved contents of the template agreement mentioned in the preceding subparagraph. Provide sufficient supply of RMB bills and properly handle their repatriation.
3.Provide a list of financial institutions that have entered RMB settlement agreements and settlement-related statistical data requested by the Bank.
4.Engage in RMB settlement business during the concession period granted by the Bank with reference to the authorization document mentioned in the first subparagraph of the previous paragraph.

Both domestic and foreign financial institutions may enter RMB settlement agreements with the RMB settlement bank; in the case of domestic financial institutions, the financial institution must be a banking enterprise that has been approved by the Bank to engage in foreign exchange or RMB business.

Banking enterprises conducting RMB business shall comply with the following rules in addition to these Regulations and other rules governing foreign exchange business:
1.Unless otherwise regulated by the Bank, open a RMB settlement account with the RMB settlement bank before engaging in RMB business; the same provision shall apply to a banking enterprise that has opened a RMB nostro account with an agent bank in Mainland China Area (hereinafter referred to as “agent bank”) and has submitted the signed settlement agreement to the Bank for approval and record.
2.Cross-border trade in connection with RMB business involving the transfer of funds into and out of Mainland China Area shall be cleared and settled through the RMB settlement bank or an agent bank.
3.A banking enterprise that has already been approved by the Bank to engage in purchase and sale of RMB bills shall carry out this business in accordance with these Regulations.
4.In providing RMB purchase or sale services to natural persons, the amount is limited to RMB 20,000 for cash transaction per person per transaction, and RMB 20,000 for non-cash transaction per person per day.
5.In providing RMB bills withdrawal through a foreign currency ATM, the amount of each withdrawal per person shall not exceed 20,000 RMB.
6.In providing natural persons with the service of RMB remittance to Mainland China Area, the customers shall be limited to individuals with a Republic of China Citizenship ID Card and the transaction must be carried out through the RMB settlement bank or an agent bank; in addition, the remittance purpose shall fall under current account, and the amount of remittance shall not exceed 80,000 RMB per person per day.
7.Other rules set out by the Bank for proper management of RMB business.