UOB becomes direct participant in China’s cross-border clearing and settlement system 

[SINGAPORE] UOB and its wholly-owned subsidiary UOB China have become direct participants in China’s Cross-border Interbank Payment System (CIPS), the bank said on Wednesday (Jun 18).

This is a wholesale payment system, authorised by the People’s Bank of China, to facilitate the settlement of trading and investments in renminbi. As at May 2025, it had 174 direct participants and 1,509 indirect participants.

Direct participants can open an account in the CIPS; indirect participants have to go through direct participants to handle cross-border renminbi payments and settlements. UOB and UOB China were previously indirect participants.

The direct access will enable UOB to provide cross-border renminbi clearing, settlement and payment services to businesses and financial institutions within and outside China, the bank said.

UOB clients can enjoy real-time gross settlement and remittance at lower payment and clearing costs.

Being on board CIPS also means the bank can expand its trading network by connecting CIPS participants globally and handling cross-border renminbi payments and settlements on behalf of indirect participants.

UOB said that its cross-border renminbi payments and trade-settlement flows doubled between 2023 and 2024, and that it expects the use of renminbi for investments, payments and trade to continue to grow.

So Lay Hua, UOB head of group transaction banking, expects the direct access will “significantly enhance” the bank’s capability to serve regional clients in their renminbi businesses.