After being allowed to offer RMB retail business, qualified foreign incorporated banks will now be able to issue RMB bank cards compatible with the nation's standards on banking cards with the China Banking Regulatory Commission (CBRC) having already begun to accept applications.

This move has come after the decision was reached at the China-US Strategic Economic Dialogue held last month. The CBRC announced that accepted foreign banks would receive the same treatment as Chinese banks, and would allow overseas banks to provide the full gamut of RMB services.

Under the Administrative Rules on Foreign Banks, which came into vigor last December, overseas banks may issue RMB bank cards once they have completed registration as local entities. However, the new regulations still do not allow for all areas of technical problems such as risk control and payment systems.

The move will be welcomed by the many overseas banks that have incorporated in China and have been awaiting the arrival of the new bank card regulations.

An initial draft of the regulation has been completed by the State Council's Legislative Affairs Office, the People's Bank of China and the China Banking Regulatory Commission, an earlier report said.

Meanwhile, overseas banks, including Bank of East Asia (China) Ltd., HSBC and Standard Chartered Bank, have all prepared to announce their plans once the new regulation is in place.

So far, central figures reveal that Chinese banks have issued more than 1.1 billion bank cards -- 1.08 billion debit cards and some 50 million credit cards.

Editor: Yan