ICBC has recently launched personal banking category II account services. After opening category II account online, customers can use the account for deposit, purchase of investment and wealth management products, consumption and bill payment, enjoy an all-round online mobile banking services. Earlier on June 1, ICBC officially launched personal banking category III account services.

According to an official with ICBC, the launch of category II account services indicted that ICBC’s entry into a new stage in categorized account management, realizing a full coverage of category I, II and III accounts. As electronic account, the category II account is not equipped with physical bank card., and can be used along with ICBC e-Payment or other third party payment in online shopping, bill payment and other scenarios of online consumption with daily payment limit up to RMB 10,000. No management or service fee will be charged for category II accounts, and transfer with linked accounts is also free of charge.

ICBC customers can directly open category II accounts, while customers having no ICBC debit cards or passbooks may open category II account through ICBC APP or ICBC Direct Banking APP by registering and linking to a debit card account (category I account) under the same name. In the future, services for category II account opening with non-ICBC accounts will be expanded to more banks, and self-service terminals will be used as a channel for opening accounts.

According to industry expert, ICBC’s launch of category II accounts represents key improvement in categorized account management in the context of internet finance prosperity. An integrated service system covering category I, II and III accounts will not only satisfy customers’ daily needs for small-amount and quick payment, but also protect fund and information security as it provides inclusive, safe and convenient financial payment approaches through categorized account management, enabling customers to access convenient, safe and favorable internet-based wealth management services.

On December 25 last year, the People’s Bank of China issued the Notice on Improving Personal Bank Account Services and Strengthening Account Management (the “Notice”), requiring the establishment of a categorized management mechanism of bank accounts, where personal bank accounts are classified based on the identity verification approach, and personal RMB accounts are classified into category I, category II and category III featuring different scopes of service and authorities. The Notice states that customers can open category I, category II and category III accounts at bank counters. If the customer files applications through the remote video teller machine or intelligent teller machine and the identity information is verified by the bank tellers at site, the customer can open category I accounts. For customers whose identity information is not verified by bank tellers, they can only open category II and category III accounts. For customers submitting application through electronic channels such as online banking and mobile banking, only category II and category III accounts can be opened.

The Notice further states that banks can provide deposit, purchase of investment and wealth management products, transfer, consumption and bill payment, cash deposit and withdrawal and other services for customers with category I account. For customers holding category II account, banks can provide services such as deposit, purchase of investment and wealth management products, transfer of limited amount, consumption and bill payment of limited amount. In addition, different functions and amounts of transfer are set based on the channel of account opening. Banks can provide consumption and bill payment service with limited amount for customers holding category III account. However, category II and category III accounts allow for no cash deposit and withdrawal, and have no physical cards. In terms of amount limit, the People’s Bank of China sets the daily limit for consumption and bill payment at RMB 10,000 for category II account and RMB1,000 for category III account.