Citigroup yesterday said its debit card database on the mainland had passed inspection by the People's Bank of China, making it the third overseas lender eligible to issue yuan-denominated cards....
SHANGHAI - Citibank (China) Co Ltd. said it has won government approval to issue yuan-based debit cards to retail customers. Citibank said it has partnered with China Union Pay Data Services Co Ltd, the leading bank card third-party processor, to handle its mainland debit card transaction processing.
China Union Pay is the card-processing system backed by China's central bank. The launch of bank cards by locally-incorporated foreign banks has been delayed partly because of the issue of establishing data centers on the mainland. By partnering with China Union Pay, locally-incorporated foreign banks appear to have satisfied regulators.
Citibank said it will be in a position to launch debit cards in the near future. Citibank is the third foreign bank incorporated in China to receive approval to issue debit cards in China following Bank of East Asia and Standard Chartered, which won approval last week.
In June 2007, the China Banking and Regulatory Commission said it was reviewing applications submitted by four foreign banks to operate card businesses. The four banks were Citibank, HSBC, Standard Chartered and Bank of East Asia - the first batch of foreign banks that received regulatory approval in March 2007 to locally incorporate their mainland operations. Under WTO agreements, foreign banks in China are allowed to offer a full range of yuan services, including issuing yuan bank cards, once they are locally incorporated.
SHANGHAI - Citibank (China) Co Ltd. said it has won government approval to issue yuan-based debit cards to retail customers. Citibank said it has partnered with China Union Pay Data Services Co Ltd, the leading bank card third-party processor, to handle its mainland debit card transaction processing.China Union Pay is the card-processing system backed by China's central bank. The launch of bank cards by locally-incorporated foreign banks has been delayed partly because of the issue of establishing data centers on the mainland. By partnering with China Union Pay, locally-incorporated foreign banks appear to have satisfied regulators.
Citibank said it will be in a position to launch debit cards in the near future. Citibank is the third foreign bank incorporated in China to receive approval to issue debit cards in China following Bank of East Asia and Standard Chartered, which won approval last week.
In June 2007, the China Banking and Regulatory Commission said it was reviewing applications submitted by four foreign banks to operate card businesses. The four banks were Citibank, HSBC, Standard Chartered and Bank of East Asia - the first batch of foreign banks that received regulatory approval in March 2007 to locally incorporate their mainland operations. Under WTO agreements, foreign banks in China are allowed to offer a full range of yuan services, including issuing yuan bank cards, once they are locally incorporated.
