Core Viewpoint - The People's Bank of China has proposed significant changes to the regulatory framework governing electronic payments and credit card overdraft rates, aiming to enhance flexibility for financial institutions and better meet consumer needs in large transactions [1][10]. Electronic Payment Adjustments - The previous limits on electronic payment transactions, such as a single online payment cap of 1,000 yuan and a daily cumulative limit of 5,000 yuan for individuals, have been removed, allowing for larger transactions [3][4]. - This change signifies a shift from "small-scale convenience" to "full-scenario coverage," facilitating smoother fund transfers for significant purchases like real estate and cross-border transactions [3][4]. Credit Card Overdraft Rate Changes - The proposed removal of the upper and lower limits on credit card overdraft rates will grant banks greater pricing autonomy, enabling them to tailor interest rates based on individual customer credit profiles [6][7]. - The previous regulations, established in 2016, aimed to standardize the credit card market but have become outdated as the market has matured and competition has intensified [6][9]. Market Dynamics and Consumer Impact - The removal of transaction limits and interest rate caps is expected to stimulate consumer spending on larger items and increase the frequency of credit card usage, thereby revitalizing banks' electronic payment and credit card businesses [5][6]. - The credit card market has seen a decline in the number of cards issued, with a drop from 7.49 billion to 7.15 billion year-on-year, indicating a need for innovation and reform in the sector [8][9]. Regulatory Rationale - The People's Bank of China aims to strengthen financial legal frameworks and adapt to market developments, ensuring that regulations align with current business practices and consumer needs [10].