The People’s Bankof China (PBC) convened a video conference on the extension work of bankcardservices tailored for rural migrant workers on July 5. Mr. Su Ning, DeputyGovernor of the PBC, attended the meeting and delivered an important speech.Governor Su arranged in a comprehensive manner the extension work of bankcardservices tailored for rural migrant workers in 12 qualified provinces based onthe experiences from the pilot program in Guizhou province, and called on the relevant parties to further clarify theirresponsibilities and ensure the smooth conduct of the extension work.

Governor Suconfirmed the achievements in the pilot program of bankcard services tailoredfor rural migrant workers in Guizhou province. He stated that the serviceenabled rural migrant workers to withdraw their deposits in an outlet of ruralcredit cooperatives in their hometown after they deposited cash into bankcardsat commercial banks in the cities where they worked. With supports from the PBCand Guizhou provincial government and the concerted efforts of the Industrialand Commercial Bank of China, Agricultural Bank of China, China Union Pay andthe Rural Credit Cooperatives Association of Guizhou province，the pilot bankcard services in Guizhou provinceachieved a great success, which helped rural migrant workers to remit theirearnings, improved the payment & settlement channel of rural creditcooperatives in the province, and promoted the bankcard market development inrural areas. The pilot program won high praise from the participating banks andthe public, marked significant progress in providing tailored bankcard servicesto rural migrant workers and laid a foundation for extending the business nationwide.

GovernorSu spoke highly of the great significance of the bankcard services tailored forrural migrant workers. He pointed out that providing bankcard services tailoredfor rural migrant workers is a practical step of the PBC and relevant partiesthat greatly benefit rural farmer workers, and one of the important steps toestablish a socialist new countryside and help solve the problems in agriculturaleconomy. It was an important institutional arrangement in improving the ruralpayment and settlement environment and an effective way to facilitate moneytransfer by rural migrant workers, boost bankcard acceptance in rural andundeveloped regions and promote commercial banks and rural credit cooperativesto develop fee-based business as well.

Governor Suarranged in a comprehensive manner the extension work of bankcard servicestailored for rural migrant workers in 2006. He stated that two factors shouldbe taken into consideration when choosing provinces to implement the bankcardservices tailored for rural migrant workers: First, it should be a big exporterof rural migrant workers; Second, rural credit cooperatives in the provinceshould have a relatively sound operational system. Accordingly, the PBC haschosen 11 provinces including Shandong province as the regions to implementbankcard services for rural migrant workers in 2006. At the same time, Guizhou province will improve the pilot program to cover moreareas and include more commercial banks. The extension program will becompleted in two batches in 2006 in line with the principle of adopting aunified model and a gradual approach. The extension work should be finishedbefore end-September in 6 provinces including Shandong, Hunan, Jiangsu, Fujian and Jiangxi and Chongqing municipality and the whole of Guizhou province. By end- 2006, the extension program should be finished in 5provinces including Shaanxi, Sichuan, Yunnan, Henan and Guangxi. All member banks of the ChinaUnion Pay will become the participating bankcard issuers to join the programwhile the state-owned commercial banks and national joint-stock commercialbanks should conduct the business ahead of others in particular.

Governor Su gavespecific requirements on the extension work in 12 provinces. He stressed thatthe extension work should be planned and arranged in a scientific andcomprehensive way since it is very technical and covers a wide area. First,organizing efforts should be strengthened. The PBC branches should establish aleading group, led by the managing vice president, to oversee the extensionwork, and the bankcard issuers, China Union Pay Co. Ltd., and rural creditcooperatives should establish their own extension working group accordingly toensure that the task can be accomplished on schedule. Second, all relevant partiesshould cooperate closely and fulfill their obligations to make concertedefforts. The PBC branches, as the organizer and coordinator, should continue toprovide guidance to the project, monitor and examine the progress, and timelyanalysis and resolve any problems that may arise; the bankcard issuers shouldmake good business and technology preparation according to the extension planand provide good card issuing service as well as security support; the ChinaUnion Pay Co. Ltd. shall improve the function of cross-bank service and ensurethe safe and stable operation of the cross-bank network through the extensionof this new business; and the rural credit cooperatives should improve theirwork in accepting bankcard issued by other banks based on the integratedbusiness operation system. Third, prompt efforts should be made to restructureand test the system strictly in line with the business schedule. Fourth,business procedures should be regulated, relevant rules on business managementstrictly established and technology measures strengthened to enhance riskprevention capability to create a safe transaction environment for ruralmigrant workers, ensure the continuity of the system and business, preventfraud and money laundering activities, guarantee fund safety and protect theinterests of rural migrant workers. Fifth, steps should be taken to givepublicity to the project, encourage rural migrant workers and all parties toactively support and participate in the extension work, enhance the awarenessof migrant workers to use card and create a favorable public opinionenvironment.

The bankcardservices tailored for rural migrant workers enable migrant workers to depositcash into debit cards with Union Pay logo in the place where they work andwithdraw money from the rural credit cooperative service network at their hometown so as to reduce risks faced by rural migrant workers when carrying largeamount of cash home.

Presidents of thePBC branches in the 12 provinces participating the extension program, officialsof relevant departments, presidents of the state-owned commercial banks,joint-equity commercial banks, China Union Pay Co. Ltd. and their branches, andmanagers of rural credit cooperatives at provincial, municipal and countylevels attended the video conference.