The Nationwide Check Imaging System (CIS) operated by the People’s Bank of China has just been officially launched June 25, 2007. The system enables companies and individuals to use their checks for the various payments across the country. Previously checks were permitted for local payments only.

A trial operation of the CIS system was launched in six provinces and cities at the end of last year, and the planned nationwide roll-out has made some positive progresses, says the central bank.

The system conducts inter-bank clearing processes by paper-checks’ imaging and exchanging for truncation. It doesn’t mean checks can be sent electronically. Under the new system, check’s payees can receive funds as quickly as several hours after the acceptance by the receiver bank, but typically in 2 to 3 working days. Currently checks can be drawn with a cap of 500,000 Yuan (US$6,600).