China will allow foreign-funded banks to conduct Renminbi business for Chinese citizens before Dec. 11 in line with its commitments to the World Trade Organization, said Song Dahan, deputy director of the Legislative Affairs Office of China's State Council, on Thursday.

The government would also remove regional restrictions and other limits on foreign-funded banks, giving them the same treatment as Chinese banks, said Song at a press conference on China's new regulations on foreign-funded banks.

According to the regulations issued Wednesday, Chinese branches of foreign banks remain banned from engaging in Renminbi services with Chinese citizens unless an individual, with the approval of the banking regulatory body, makes a fixed deposit of a minimum one million yuan (127,000 U.S. dollars).

The government will encourage and guide foreign banks to transform their branches into or set up incorporated banks registered in China, which will enjoy the benefits of the country's banking sector, said Song.

Since joining the World Trade Organization in 2001, the country has seen the number of foreign-funded banks growing and their business scope expanding, said Song.

China has fully opened its foreign exchange business to foreign-funded banks and allowed 111 foreign financial institutions to offer Renminbi services for Chinese and foreign enterprises in 25 cities.

Editor: Yan