Many people are unhappy about being restricted when withdrawing cash from banks. Here's a detailed explanation.


I believe there are reasons behind the banks' actions.
1. Phone and telecom fraud are rampant. Every year, the Chinese people lose huge amounts of money to scams. You can often see news reports about people ignoring warnings and insisting on withdrawing cash only to be scammed.
2. Anti-money laundering regulations. Cash is the hardest form of funds to trace. Large cash flows are easily used for underground banks, money laundering, gambling, and illegal transactions. Therefore, the banking system has been reducing large cash transactions.
3. The financial system prefers digitalization. Modern finance actually doesn't favor cash because: cash flow is untraceable.
Why would you need large amounts of cash for normal spending? Bank transfers and electronic payments are sufficient. So, restricting large cash withdrawals is justified. If you say you're withdrawing cash for a bride price, the bank won't say anything and will just look at you with a sympathetic gaze as you leave.
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