Customers of many banks in China are still unable to withdraw their money, transfer funds, or make a payment, despite being able to make deposits. What is the reason for frozen bank cards?
Without prior notice from ICBC, China Merchants Bank, and Agricultural Bank, many bank users discovered their cards were rejected when attempting to make transactions. People who went to branches to unlock their accounts have been waiting for days, and their card hasn’t resumed working yet. Some banks claim it is to prevent money laundering, while others took risk control measures to cooperate with the “broken card” action as their reason.
In October 2020, the government held a meeting on a new type of illegal and criminal telecommunications network. A nationwide “break card” operation was launched to severely crack down on the “two cards” criminal activities. The upgrade of the broken card is mainly aimed at accounts that may be involved in illegal trading, leasing, and lending of bank cards and provide transfer and money laundering services for telecommunication network fraud.
Amid the recent “suspending loans and cutting supply” storm in many parts of China, people are not so convinced about the “broken card” excuse. By turning red, the bar code on covid health devices prohibited depositors from going out to withdraw their money. Disabling their bank cards rings a bell in the cash crunch situation.
Many people face a serious problem when all their money is in the bank, and being unable to withdraw cash and frozen bank cards have severely impacted their daily lives. Talking about the bank’s insufficient cash flow, Lin Fan, an employee of a state-owned enterprise in Shenzhen, commented that “National vaccines” requires a lot of money. This fund was originally not paid by the government’s financial expenditure, but by medical insurance, especially in Guangdong Province. Where does this trillion-scale vaccine money come from?”.