The Payment & Clearing Association of China and the China Banking Association issued a joint initiative on Sunday to encourage the continuation of payment fee reduction for small and micro enterprises and self-employed households.

According to the payment and clearing association, the move aims to further support the real economy by extending certain fee reduction measures that were due to expire.

The initiative specifically targets fees that have seen significant concessions and are in high demand for reduction, including opening of bank accounts, account management and annual fees, renminbi transfer and remittance fees, and payment account balance withdrawal commissions. These fees will continue to enjoy preferential payment reduction measures, providing sustainable cost-saving initiatives for small businesses.

In terms of other fee payments, the associations are encouraging payment industry entities to autonomously reduce fees based on their actual conditions and in line with market principles.

Since the implementation of payment commissions reductions for small and micro businesses in 2021, member units of the payment and clearing association have cumulatively provided over 100 billion yuan ($14.26 billion) in fee reductions by the end of June of this year.

The Industrial and Commercial Bank of China, one of the country’s largest commercial banks, has expressed its commitment to implementing the initiative and will continue to extend the preferential period for three more years until Sept 30, 2027. ICBC will identify eligible customers entitled for fee reductions automatically through its systems to benefit all eligible small businesses.