CIPS is sanctioned by the People’s Bank of China and is designed to streamline the settlement of trade and investments involving the renminbi. As of May 2025, CIPS had 174 direct participants and 1,509 indirect ones. Direct members can open accounts within CIPS, while indirect participants require cooperation with direct members for cross-border renminbi transactions.
Previously, UOB and UOB China were operating under the indirect participant status before this development.
Advantages of Direct Access
The new direct entry will enable UOB to offer cross-border renminbi clearing, settlement, and payment services for businesses and financial institutions both within and outside China. This enhances real-time gross settlement and remittance capabilities, potentially reducing costs associated with payments and clearances.
According to the company’s data, cross-border renminbi payments and trade settlements doubled from 2023 to 2024, indicating a significant growth in the use of renminbi for transactions. The bank expects further expansion in this area.
UOB representatives are optimistic that direct access will improve the bank’s capacity to serve regional clients engaging in renminbi transactions.
Comparative Perspective
In comparison, DBS China was among the first Singaporean banks to become a direct participant in CIPS back in 2015. This early entry allowed it to efficiently offer renminbi payment and settlement solutions to its corporate and financial institution clients, particularly those active in the China-ASEAN corridors.
DBS reported that transaction volumes related to CIPS increased by over 30 percent in 2024 compared to the previous year. Officials from DBS China see rising demand for more efficient cross-border financial services as economic ties between China and ASEAN continue to strengthen.