What is a CNAPS Code?: Example & Where to Find It

If you're making a payment in China, you may have heard of or been asked to provide the CNAPS code. This important code plays a key role in domestic RMB (Renminbi) payments. 

But what exactly is CNAPS, how does it work, what does it look like, and where can you find it? 

In this guide, we’ll break down everything you need to know about the CNAPS. 

The CNAPS (China National Advanced Payment System) code is a 12-digit identifier provided by the People's Bank of China, the nation's central bank, to identify Chinese banks and branches during domestic Renminbi (RMB) transactions. 

The code is assigned to all banks in China, including foreign banks operating in the country. The CNAPS code is required for all RMB payments in mainland China and must be included in the transfer order.

It serves a similar purpose to the sort code used in the UK or the routing number in the US.

A CNAPS code has 12 digits and follows this structure:

• The first three digits are the bank code
• The next four digits represent the city or district
• The next four digits represent the branch or location of the bank.
• The final digit is a verification code or a unique identifier for the specific branch.

For example, the CNAPS code could look like this: 104290006099.

• 104: The first three digits identify the bank name. In this case, "104" is the code for the Bank of China.
• 2900: The next four digits represent the city or district code. In this case, "2900" corresponds to Shanghai.
• 0609: The following four digits identify the specific branch or location of the bank within that city or district.
• 9: The final digit is a verification code or unique identifier that ensures the accuracy of the CNAPS code and uniquely identifies the branch.

There are two types of CNAPS, each serving a different purpose.

1. CNAPS-HVPS (High-Value Payment System): CNAPS-HVPS is the most widely used system in China, operating across a network of over 800 cities. It’s designed for large business transactions, such as paying suppliers or receiving payments from partners. The key advantage of HVPS is its real-time speed, allowing payments to be settled in the recipient’s bank account almost instantly. 
2. CNAPS-BEPS (Bulk Entry Payment System): The Bulk Entry Payment System (BEPS) is similar to the Automated Clearing House (ACH) in the US, where banks process many small payments at once, typically distributing funds on the same day. BEPS is ideal for smaller, regular payments like payroll or recurring invoices, where speed isn’t as critical.

CNAPS is unique to China, which makes some aspects of transfers easier, and some more difficult.

When you make a remittance in China, the remitting bank uses a CNAPS code to send both payment details and funds directly to the beneficiary bank. Similar to a SWIFT code, CNAPS includes crucial information like the branch of both the sender and the recipient. 

Since each bank branch has its own unique CNAPS code, it allows for precise routing of the payment, ensuring the transaction is processed quickly and accurately.

For domestic transfers within China, the CNAPS code is usually all that's needed. 

The main difference between CNAPS and CIPS is that CNAPS is used for domestic payments within China, while CIPS handles cross-border payments involving the Chinese yuan.

In the 1980s and 1990s, the Chinese government reformed the market in their country, and opened their border to foreign investment. This switch to free-market capitalism is what spurred the next three decades of unprecedented economic growth. 

In order to manage this growth, China’s central bank created two payment systems. First, CNAPS (China National Advanced Payment System), which facilitates domestic payments within China. The second is the CIPS (China International Payments System), which handles anything coming from outside of China. 

On a different note, SWIFT(Society for Worldwide Interbank Financial Telecommunication) is a global system for transmitting payment instructions for cross-border transactions involving foreign currencies.

CIPS and SWIFT are both used for international payments, but CIPS is a full payment system that handles the clearing and settlement of yuan-denominated transactions. CIPS offers a more integrated solution for cross-border payments in yuan.

The easiest way to get a CNAPS code is to ask the recipient directly. Your contact in China will most likely have this information. Alternatively, you can contact their bank, though the language barrier may present some challenges.

If you are looking for a CNAPS code of your bank, you should be able to find it on your bank documents, the bank's website, or by contacting the branch.

Navigating international payments can be complex, especially with the unique systems in each country.  If you're running a business and need to send money across borders—whether to suppliers in China or partners in other countries – Statrys offers an easy solution.

Statrys helps businesses registered in Hong Kong, Singapore, and the BVI manage cross-border payments through SWIFT and local payment networks. These networks enable payments to and from China and other countries at lower fees as if making local transactions. 

Additionally, Statrys offers a multi-currency account that supports 11 major currencies, allowing businesses to convert funds when exchange rates are favourable. FX options are also available to help mitigate foreign exchange risks.

Don’t have a company in Hong Kong or Singapore yet? Statrys can also help set one up!

Check out the business account services below.