China Plans to Give Each Citizen a Free Bank Account

by Mercator Advisory Group 0

China’s regulators areconsidering giving every Chinese citizen a free bank account, according to newreports this week. The news came at a time when China’s banks are beingcriticized by consumers and regulators for recently raising fees on their bankaccounts and debit cards. If the proposal does become reality, it might makeChina the first country in the world to have real 100 percent bankingpenetration. Details of the plan are not available at this point.

The China Banking Regulatory Commission (CBRC) and the National Development& Reform Commission (NDRC) are reportedly studying the feasibility to giveeach citizen a free bank account, Guangzhou Daily reported Wednesday.

The proposal is a consensus between the two ministries to let each citizenhave a bank account free of annual fee and low-balance management fee thatcurrently charged by commercial banks, the paper said.

Technical issues will need to be resolved before the proposal can belaunched, the paper said.

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http://english.sina.com/business/2010/0818/334615.html