China will establish a centralized depository system to protect clients' funds that are held by nonbanking payment institutions, under a plan unveiled on Thursday by the central bank and 16 other central government ministries and departments.

The plan also mandates a crackdown on unlicensed payment operations in order to reduce risks and support the healthy development of the online financial market.

The plan is part of China's efforts to contain internet finance risks, improve the competitive environment and boost investors' risk awareness.