INDIVIDUALS and companies can now use checks to pay for goods and services in any city across China as a check imaging system has been put into use by the central bank.
The system, designed to promote wider use of checks among consumers, has functioned well since it began operations on June 25. The number of checks written is on the rise too, the People's Bank of China said, according to the Beijing News today.
Previously, checks could only be used in the city where it was issued. The central bank started a trial for trans-city checks in Shanghai, Beijing and Tianjin, as well as the provinces of Guangdong and Hebei on December 18.
The new service will allow funds to be deposited into users' accounts within two or three hours after the checks are cashed, the report said. However, checks are capped at a maximum of 500,000 yuan (US$65,789) per transaction.
"The nationwide check imaging system is a big step as we seek more payment avenues to meet China's economic growth," said Su Ning, deputy governor of the central bank, in previous reports.
To encourage users, the central bank will ask them to use checks when paying gas, telephone and water bills and for school tuition payments, the report said.
In China, checks are used more by firms as most people use cash, unlike in overseas markets where checks are widely accepted for paying for goods and services.
China's booming economy has led to a closer link between different regions, making it more important to have a trans-city payment method.