Banks and other financial institutions in China will have to report all domestic and overseas cash transactions larger than 50,000 yuan ($7,201.50), compared with 200,000 yuan previously, the central bank said on Friday.

Ma Jun, chief economist of the People's Bank of China (PBOC), said the responsibility of reporting such transactions will be assumed by financial institutions, and there will be no extra documentation or official approval procedures required for companies or individuals, according to the Xinhua report issued late on Sunday.

Ma added that other major economies have similar rules.

China is maintaining the same quota of $50,000 for each individual's annual foreign exchange purchase.

The central bank has said the recent move was aimed at better monitoring of money laundering and financing for terrorism rather than targeting normal business activities, Xinhua said.

Beijing has announced a string of rules in recent months to stem capital outflows after its yuan currency skidded to more than eight-year lows.

(Reporting by Chen Aizhu and Cheng Fang; Editing by Kim Coghill)