BEIJING — China has been tightening supervision on the payment institutions to ensure quality development of the sector, said Fan Yifei, deputy governor of the People's Bank of China (PBOC) at a forum.

Supervision has been tightened since 2015 to tackle problems in the sector and the payment institutions have been reduced to 236 at present, Fan said.

After measures such as paying the full amount of reserve funds to the PBOC, the licensed institutions have refrained from violating the rules, and chaos in the payment market has been effectively rectified, Fan said.

The PBOC will crackdown on unlicensed institutions, standardize innovation, control cross risks and stay vigilant about nesting financial products around payment business, Fan said.

The regulatory system should be strictly enforced to prevent the licensed institutions from carrying out business beyond their scopes and without permission, and the real-name account system should be effectively implemented, Fan said.