Laws of the People's Republic of China

Circular of Shanghai Headquarters (the No.1 Department of Financial Services) of the People's Bank of China on Transmitting the Circular on Declaring the Data of Bank Codes to the Image Exchange System

Yin Zong Bu Fu Yi[2006] No. 69

Shanghai branches of all policy banks, State-owned commercial banks and joint-stock commercial banks, Shanghai Pudong Development Bank, Bank of Shanghai and Shanghai Rural Commercial Bank, the Business Department of Headquarters of the Bank of Communications, and the accounting and settlement departments of foreign-invested banks in Shanghai Municipality that engage in RMB business:

The Circular on Declaring the Data of Bank Codes to the Image Exchange System (Yin Zhi Fu [2006] No. 195) is hereby transmitted to you, and you are requested to implement accordingly.

Attachment: Circular on Declaring the Data of Bank Codes to the Image Exchange System (Yin Zhi Fu [2006] No. 195)

Shanghai Headquarters of the People's Bank of China

November 8, 2006 Attachment: Circular of the People's Bank of China ( the Payment and Settlement Department) on Declaring the Data of Bank Codes to the Image Exchange System

Yin Zhi Fu [2006] No. 195

The No.1 Department of Financial Services of Shanghai Headquarters of the People's Bank of China, and the payment and settlement departments of all the branches, business management departments, central sub-branches of provincial capital cities of the People's Bank of China, and Shenzhen Central Sub-branch:

For the purpose of ensuring the pilot operation of National Check Image Exchange System (hereinafter referred to as CIS System) and supporting the declaration of the data of bank codes of the CIS System, the Headquarters has decided to upgrade the Bank Code Management System (hereinafter referred to as BCMS), and the new version of BCMS has been formally used as of October 30, 2006. The relevant matters are hereby announced as follows:

I.

Main Functions of the New Version of BCMS

The new version of BCMS follows Internet platform and browser technology, on the basis of remaining the bank code management functions and the declaration procedures of the payment system, the management function over the data of bank codes of the CIS System has been added, and it has realized the declaration, examination, approval, delivery and effectiveness, etc. of the data of bank codes of the CIS System.

A separate user management mechanism shall be implemented for the bank codes in the CIS System, which includes declaration bank users (including main declaration users and input users), examination bank users and National Processing Center (NPC) users. Among others, declaration bank users shall be in charge of declaring the data of bank codes of the CIS System to the examination bank users, and the payment and settlement department of each branch or sub-branch of the People's Bank of China can, according to local situation, determine that the responsibilities of the declaration bank users shall be taken by the payment and settlement department, the clearing house or the virtual clearing house of commercial banks that adopt the mode of centralized access; and the examination bank users shall be in charge of examining the data and information that has been submitted by the declaration bank users and submitting them to the Bank Code Management Department of the Headquarters of the People's Bank of China. The payment and settlement department of each branch or sub-branch shall take charge of the examination bank users, and the Bank Code Management Department of the Headquarters of the People's Bank of China shall be responsible for the examination bank users of the virtual sub-centers (which refer to the sub-centers affiliated to the virtual clearing houses of national commercial banks that have uniformly accessed into the NPC).

The structure of the new version of the BCMS, the code rules for all levels of users and the use thereof shall be referred to the Instructions on the BCMS Structure and User Design (see Attachment 1).

II.

Application Scope of the New Version of BCMS

The new version of BCMS supports the declaration and routine alteration of the data of bank codes of the participants in the payment system and the CIS System.

The CIS System only applies to the declaration and alteration management of bank codes to image exchange systems in the pilot provinces (municipalities) in the term of trial use. The CIS System can support the declaration and routine alteration of the data of bank codes of the National Check Image Exchange System during dissemination.

For the purpose of facilitating the national use and handling of checks, a participant who has joined the payment system shall declare his bank code of the check image exchange system in principle, which must be consistent with that of the payment system. Where any participant who has not joined the payment system needs to participate in the check image system, the agency bank for proceeding acknowledgements of receipt of image of the small-amount payment system shall be determined subject to relevant provisions, and the data of the bank code of the check image system shall be worked out as required by the prescribed standards.

III.

Arrangements for Declaring Bank Codes to the CIS System in Pilot Provinces (Municipalities) The declaration bank users in Beijing, Tianjin, Shanghai, Hebei, Guangdong and Shenzhen shall, in light of the standards for bank codes of CIS System, accomplish the data declaration work to the examination banks before November 10 for the purpose of ensuring the accuracy and timeliness of basic data in the image exchange system. An examination bank shall stick to the standards for the bank codes in the CIS System and the requirements for the declaration of system data, achieve the examination and submission of the data of bank codes in the CIS System before November 14.

Specific declaration plans and operation procedures shall be referred to the Declaration Plans and Operation Procedures for the Data of Bank Codes to the Image Exchange System (see Attachment 2) and the Guidelines for the Declaration of Data of Bank Codes to the Image Exchange System (see Attachment 3).

IV.

Other Relevant Requirements The payment system will suspend the processing of declarations for alterations on bank codes in order to ensure the smooth operation of the pilot work on the CIS System from November 10 to December 18, 2006. The opening of main declaration users of participants in the image exchange system and the declaration procedures for the data of bank codes shall be referred to the Procedures for Opening of Main Declaration Users in the Image Exchange System (see Attachment 4) after the CIS System has been launched for trial use since December 18, 2006.

The payment and settlement departments of branches and sub-branches of the People's Bank of China in Beijing, Tianjin, Shanghai, Hebei, Guangdong and Shenzhen shall, strictly in accordance with the aforesaid requirements, work earnestly on the declaration of the data of bank codes in the CIS System of their respective provinces (municipalities), and make sure the high efficiency, timeliness and accuracy of declaration data. If you encounter any problem in the process of declaring the data of bank codes, you shall contact the Payment and Settlement Department of the People's Bank of China in a timely manner. Contact person: Zhou Pengfu. Tel: 66194675.

Please transmit this Circular to all banking institutions and clearing houses within your jurisdictions.

Attachments:

1.

Instructions on the BCMS Structure and User Design

2.

Declaration Plans and Operation Procedures for the Data of Bank Codes to the Image Exchange System

3.

Guidelines for the Declaration of Data of Bank Codes to the Image Exchange System

4.

Procedures for Opening of Main Declaration Users in the Image Exchange System

Payment and Settlement Department of the People's Bank of China

November 1, 2006 Attachment 1: Instructions on the BCMS Structure and User Design

The information contained in BCMS is very important basic information to the payment system and the national check image system, is also the unique identification to the participants in the payment system and the image exchange system, and runs through the entire process of the disposal and settlement in payment business and image business.

I.

BCMS Structure

The BCMS bases on a Web design, and has been designed four kinds of application users as declaration bank users, examination bank users, bank code management department users and National Processing Center (NPC) users to uniformly administrate the declaration, examination, approval and delivery of bank codes in the payment system and the image exchange system.

The specific system structure shall be referred to Figure 1- Topological Map of the BCMS.

Figure 1- Topological Map of the BCMS (omitted)

II.

Instructions on the Design of BCMS Users

i.

Coding rules for BCMS users

1.

Coding rules for the users of the payment system

XXX XXXX X XX

Type of Bank City Code Type of User Serial Number of User

Among others, Type of Bank refers to the code of the bank type of the banking institution to which the user belongs, for example: 001 represents the People's Bank of China; City code refers to the code of the city where the banking institution to which the user belongs is located, for example: 1000 stands for Beijing; and Type of User refers to the role of the user in the BCMS, and the code for bank code management department users is 1, the code for examination bank users is 2, the code for main declaration bank users is 3, the code for input users of declaration banks is 4; and the code for NPC bank code management users is 5; and Serial Number of User will be automatically produced for the user in the BCMS, starting from 1. For example: the code for main declaration bank user of Beijing Branch of the Industrial and Commercial Bank of China is 1021000301.

2.

Coding rules for the users of the image exchange system

XXX XXXX X XX

Type of Bank Code of Sub-center Type of User Serial Number of User

Among others, Type of Bank refers to the code of the bank type of the banking institution to which the user belongs, for example: 999 represents clearing houses; Code of Sub-center refers to the code of the sub-center to which the banking institution where the user is affiliated belongs, for example: 1009 represents Beijing sub-center; and Type of User" refers to the role of the user in the BCMS, and 1 represents the bank code management department users, 6 represents the examination bank users, 7 represents the main declaration bank users, 8 represents the input users of declaration banks; and 9 represents the NPC bank code management users; and Serial Number of User" will be automatically produced for the user in the BCMS, starting from 1. For example: the code of main declaration bank user of Beijing Branch of the Industrial and Commercial Bank of China is 1021009701.

The initial passwords for each user to log into the payment system and the image exchange system are 88888888, which shall be timely revised by each user after first access into the system, and the revised passwords shall be kept properly.

ii.

BCMS user setting

As to the handling of data of bank codes in the payment system and the image exchange system, declaration bank users, examination bank users, NPC users and bank code management department users have been designed by the BCMS to uniformly administrate the bank codes in the payment system and the image exchange system. Among others, the type of users of bank codes in the payment system and the data handling mode shall be remained, and the logic relationship between the users to the payment system and those to the image exchange system shall be referred to Figure 2- Design Figure of Users to the BCMS.

Figure 2- Design Figure of Users to the BCMS (omitted)

The instructions to all types of users in the image exchange system are hereby given as follows:

Bank code declaration bank users: they shall be in charge of filling in the bank codes and declaring the altered information, and designating the clearing houses, sub-centers as well as agency banks for the small-amount business. Generally, they refer to the users of the clearing houses to which the participants which dispersedly access into the image system belong or the users of the commercial bank which uniformly access into the image system.

Bank code examination bank users: they shall be in charge of examination of the information that has been declared, and revising the status as "examined" after ensuring that there is no error. They shall generally refer to the users of the branches and sub-branches of the People's Bank of China at the locality of sub-centers. Where a commercial bank has uniformly accessed into the image system across the country, examination bank users of the said commercial bank shall be its bank code management department concurrently.

Bank code management department users: they shall be in charge of collecting the bank codes alteration data which has been examined and approved, appointing the date of effectiveness for the alteration of bank codes, and authorizing the delivery of alteration data. In general, they shall refer to the business management department user of the headquarters of the People's Bank of China.

NPC bank code management users: they shall be in charge of delivering the documents on bank codes alteration to the image system, and making sure that the said documents become effective on the designated date of effectiveness. Generally, they shall refer to the users in charge of check and delivery of the data of the bank code system of Settlement NPL.

Attachment 2: Plans and Operation Procedures for Declaring the Data of Bank Codes to the National Check Image Exchange System in Pilot Provinces (Municipalities)

The declaration of the data of bank codes to the National Check Image Exchange System in pilot provinces (municipalities) is divided into four stages: environment preparation, data declaration, data examination and data submission.

I.

Stage of Environment Preparation (November 1 to 3, 2006) The bank code management department will add the codes of sub-centers, examine the bank users as well as NPL users in pilot provinces (municipalities) on November 1, 2006.

The examination bank users of sub-centers in pilot provinces (municipalities) will input the bank codes of the clearing houses, and the bank code management department will add the users of the clearing houses from November 2 to 3, 2006.

II.

Stage of Data Declaration (November 6 to 10, 2006) The clearing houses affiliated to the sub-centers in pilot provinces (municipalities) will log into the system for the declaration of main users, and input the new users, and make good preparations for the declaration of the data of bank codes on November 6, 2006.

The clearing houses will input the data of the check exchange system via the main declaration user or the input user, and seriously verify the data which has been input from November 6 to 10, 2006 (See Attachment 1 for the standards for bank codes).

After ensuring that there is no error in the data that has been input, the clearing houses will submit the data to the sub-center examination bank user for the examination of declared data on November 10, 2006.

III.

Stage of Data Examination (November 10 to 14, 2006) After ensuring that all the data that has been input by clearing houses has been submitted for examination, the sub-center examination bank will examine carefully the declared data from November 10 to 14, 2006.

After ensuring that there is no error in the data as declared by the clearing houses, the sub-center examination bank will submit the said declared data to the bank code management department for data examination on November 14, 2006.

IV.

Stage of Data Submission After ensuring that there is no error in the data upon examination, the bank code management department will separately submit it to the NPL user for check and delivery to lower levels, and affirm the types and quantity of the data that has been submitted on December 4, 2006. The date of effectiveness is December 18, 2006.

Attachment 3: Guidelines for Declaring the Data of Bank Codes in the National Check Image Exchange System

I.

Operational Standards for the Bank Codes in the Image Exchange System

The image exchange system comprises 3 digits for the code of the bank type, 4 digits for the area code, 4 digits for the serial number of the branch office, and 1 digit for check code, exactly 12 digits. And the structure thereof is given as follows:

XXX XXXX XXXX X

Code of the bank type Area code Serial number of the branch office Check code

i.

Codes of the bank type

It comprises three fixed-length digits, among others, 999 represents the clearing houses, and others can be referred to in the table of the bank type codes.

ii.

Area codes

It comprises four fixed-length digits. As to a banking institution that has joined both the payment system and the image exchange system, the bank code of which in the image exchange system shall be consistent with that in the payment system. As to a banking institution that has only joined the image exchange system, the area code in its bank code in the image exchange system shall be used in the same way as that in the payment system. The area code of a provincial capital city or municipality directly under the Central Government shall be compliance with the national settlement center code of this city, and the area code of a county (city) under the jurisdiction of a provincial capital city or municipality directly under the Central Government shall be compliance with that of its superior provincial capital city or municipality directly under the Central Government; and the area code of a districted city shall be compliance with the national settlement center code of this city, and the area code of a city at county level under the level of a districted city shall uniformly be compliance with the national settlement center code of this city at county level no matter whether there is a branch office of the People's Bank of China in this city at county level or it is managed by the sub-branch of the People's Bank of China in any other county (city) on commission.

The specific area codes shall be referred to the national settlement center code (GB13497-92, Ji Jian Guo Biao Fa [1992] No.111).

iii.

Serial number of the branch offices

It comprises four fixed-length digits. As to a banking institution that has joined both the payment system and the image exchange system, the bank code of which in the image exchange system shall be consistent with that in the payment system. As to a banking institution that has only joined the image exchange system, the way of using the serial number of the branch office in its bank code in the image exchange system shall be in consistent with that in the payment system. After the negotiations and confirmation with the upper-level jurisdiction bank, the serial numbers of the branch offices of each bank will be decided in sequence by their superior branch or headquarters at their local city.

iv.

Check code

It comprise one digit only, and adopts the dual-mode algorithm. The system will automatically produce a check code after the first 11 digits of bank code have been input.

II.

Guidelines for Declaring the Bank Codes of Clearing Houses to the Image Exchange System

i.

Instructions for declaration

All the bank codes of the clearing houses to the image exchange system in the pilot provinces (municipalities) and the provinces (municipalities) for dissemination shall be declared through the BCMS. The declarations made by relevant clearing houses for adding, altering and canceling bank codes can be referred to the relevant contents in the operating manual after the image exchange system is put into operation.

ii.

Instructions for filling out the columns the image exchange system for clearing houses shall declare the data through the function of Declaration of Bank Codes ¨CAdded Clearing Houses in the menu of Operation Management in the BCMS before it is put into operation. The relevant interfaces for declaration can be referred to the Figure 1- Interface for Inputting the Additional Declarations of Clearing Houses to the Image Exchange System.

The contents to be filled in all columns and the notes are explained as follows: (the figure thereof is omitted):

Figure 1- Interface for Inputting the Additional Declarations of Clearing Houses to the Image Exchange System

1.

Descriptions of the function: it is responsible for the additional declarations of the data of clearing houses. This module provides an interface for the additional declarations of the data of clearing houses, checks the legality of the data input by users and saves the data input by users.

2.

Users: examination bank users.

3.

Introductions for use:

Step 1: The examination bank users Logs into the BCMS.

Step 2: Choose the following menus in sequence: [CIS Operation Management]- [0201- Declaration of Bank Codes]- [020107-Additional Clearing Houses], and enter in the interface of Additional Clearing Houses as Figure 1 shows.

Step 3: Input each item of information on the clearing houses. Among others, the number of clearing house comprises 12 digits, and the first three digits are fixed to be 999, the middle four digits are the code of the city where the clearing house is located, and the last five digits are the serial numbers and one check code. The type of the clearing house can be chosen as the real clearing house or virtual clearing house according to the circumstance actually.

Step 4: Clicking the button of Confirmation, and the system will check the data that has been input. The data will be saved on the server if the check has passed.

4.

Notes:

(1) Number of Clearing House: it comprises 12 digits, and the coding rules are consistent with those in the payment system.

(2) Type of Clearing House: the information on the clearing houses will be added upon declaration of the examination bank user. The type of Real Clearing House shall be chosen by a clearing house that begins to dispersedly accept the business of the clearing institutions; and the type of Virtual Clearing House shall be chosen by a clearing house that begins to accept the business of the clearing institutions in a concentrated manner.

(3) Sub-center to which it belongs: this item must be filled in, and comprises up to four digits at most. A regional sub-center refers to the sub-center of the image exchange system to which an additional clearing house belongs and it shall be an effective code or a code added for the same term.

(4) Name of Clearing House: this item must be filled in with the full name, which comprises 1 up to 60 characters, namely, 30 Chinese characters at most, and may include Chinese characters, two-character symbols and 1-character numerals.

(5) Shortened Form of Clearing House: this item can be filled in or left blank, which comprises 1 up to 20 characters, namely, 10 Chinese characters at most, and may include Chinese characters, two-character symbols and 1-character numerals.

(6) Address of Clearing House: this item can be filled in or left blank, which comprises 1 to 60 1-character characters, namely, 30 Chinese characters at most, and may include Chinese characters, two-character symbols and 1-character numerals.

(7) Contact Person: this item can be filled in or left blank, which comprises 1 up to 16 characters, namely, 8 Chinese characters at most, and may include Chinese characters, two-character symbols and 1-character numerals.

(8) Code of the city where the clearing house is located: this item must be filled in, which comprises 4 digits, and shall be compliance with the 4 to 7 digits of the bank codes. The detailed method shall be referred to I. Business Standards for the Bank Codes in the Image Exchange System.

(9) Postcode: this item must be filled in and comprises 5 to 6 digits.

(10) Telephone Number: this item must be filled in, which comprises 7 up to 30 characters, and may include numerals and the hyphen "-", and the format shall be: zone number - telephone number - extension number.

(11) E-mail Address: this item can be filled in or left blank, which comprises 7 up to 30 characters, and may include digits, English letters and 1-character symbols "@" and ".".

(12) The items with a mark of "*" before must be filled in.

III.

Guidelines for Declaring the Bank Codes of Clearing Institutions in the Image Exchange System

i.

Instructions for declaration

All bank codes of clearing institutions in the image exchange system in the pilot provinces (municipalities) and the provinces (municipalities) for dissemination shall be declared through the BCMS. The declarations of adding, altering and canceling bank codes shall be referred to the relevant contents in the operating manual after the image exchange system is put into operation.

ii.

Instructions for filling out the columns The participants in the image exchange system shall declare the data through the function Declaration of Bank Codes - Additional declarations in the menu of Operation Management in the BCMS before it log into the system. The relevant interfaces for declaration shall be referred to the Figure 1- Interface for Inputting Additional Declarations of Participants in the Image Exchange System.

The contents to be filled in all columns and the notes are explained as follows:

Figure 1- Interface for Inputting the Additional Declarations of Participants in the Image Exchange System (omitted)

1.

Descriptions of the function: it provides an interface for inputting the additional bank codes, checks the legality of the data that has been input by the users and saves the data.

2.

Users: input users and main declaration bank users.

3.

Notes for use:

Step 1: The users Logs into the BCMS.

Step 2: Choose the following menus in sequence: [CIS Operation Management]- [0201- Declaration of Bank Codes]- [020107-Additional Declaration], and enter into the interface of Declaration of bank codes of additional participants in the system of clearing houses as Figure 1 shows.

Step 3: Input the lawful data as required, and click the button of Confirmation, and the system will check the legality of the data that has been input. The system will give a tip if the check failed to pass.

Step 4: Revising the data that has been input as required by the tips, and conducting the re-affirmation, until the system hints that the data is successfully saved.

4.

Notes:

(1) Bank Code of Clearing House: it comprises 12 digits, and the coding rules are consistent with those for the payment system.

(2) Whether it is an institution for small-amount business: In case of a Yes, the system will automatically check whether the bank code of the payment system exits, which is consistent with that of the clearing house. The check will pass if the bank code of the payment system exits, or else, the system will show you that the corresponding institution for small-amount business does not exist. In case of a No, the system will automatically check whether the bank code of the payment system exists, which is consistent with that of the clearing house. The check will pass if the bank code of the payment system does not exist, or else, the system will show you that there exists such a corresponding institution for small-amount business.

(3) Agency bank for small-amount business, which refers to an agent bank for the acknowledgement of receipt of small-amount transactions. This bank shall have an effective bank code in the small-amount payment system. It must have joined the small-amount payment system if it chooses the acknowledgement of receipt by itself, and should choose Yes in the item of Whether it is a institution for small-amount business.

(4) Sub-center to which it belongs, which refers to the sub-center of the image exchange system to which a additional clearing institution belongs, and this item will be filled in by the system automatically.

(5) Code of The Superior Clearing House, which refers to the clearing house to the image check system to which the additional clearing institution belongs, and this item will be filled in by the system automatically.

(6) List of High-level Participants, which can be filled in or left blank, and comprises the bank codes of the participants in one or more of the same bank type in the image exchange system. Several high-level participants will be connected by the English symbol "&", and be composed of up to 70 characters at most. A clearing house does not need to fill out this item.

(7) Business Undertaking Bank, which can be filled in or left blank, and can be filled in at the time of addition and revision; it should meet the requirements for joining both the small-amount payment system and the image exchange system, and the status of bank code of a agency bank for small-amount business should be an effective participant.

The requirements for filling out the following items shall be the same as those for clearing houses: Name of Participant, Shortened Form of Participant, Contact Person, Code of the city where the clearing house is located", Postcode, Telephone Number, and E-mail address.

IV.

Guidelines for Declaring the Bank Codes in the Payment System

On the basis of the original mode for the elements for declaring the bank codes in the payment system, two items of Whether there is the bank code to the electronic inter-bank and the Bank code to the electronic inter-bank have been deleted. Other elements and method for declaring shall be consistent with the original mode.

Attachment 4: Steps for Opening Main Declaration Users of the National Check Image Exchange System

After the image exchange system is put into operation, where a province (municipality) adds, cancels, or changes the affiliation of clearing houses (including virtual clearing houses), the examination bank shall organize the additional clearing houses to open main declaration users in accordance with the steps as follows:

Step 1: Contrasting to the current declaration procedures for the direct participants in the payment system, an additional clearing house shall submit the paper documents to the Payment and Settlement Department of the Headquarters of the People's Bank of China after examined level by level by the branches of the People's Bank of China;

Step 2:The examination bank can declare the bank code subject to the paper documents as declared by the clearing house, and await the bank code management department to approve the lockup after the completion in the implement as well as the check and acceptance of the project in the clearing house; and

Step 3: The system opens automatically a main declaration bank for the clearing house after the bank code management department approves the lockup. The main declaration bank user shall submit the information on the said clearing house, which will be brought into the latest handling of bank codes of the bank code management department.

The main declaration bank user shall assign the input user as required by the declaration of bank codes after the examination bank opens a main declaration bank user for the clearing house. All users shall make declaration of bank codes as required in the business guidelines and operation manual.

Where there is any addition, cancellation or alteration of affiliation of clearing institutions (excluding virtual clearing houses), the alteration of agency relationship in the small-amount payment system, or the alteration of bank codes of clearing institutions and clearing houses (including virtual clearing houses), the relevant clearing house shall log into the server of BCMS, and directly declare the information by the module of System Management. Upon the approval of the competent examination bank, the said information shall be submitted to the bank code management department, and will be brought into the latest handling of bank codes by the bank code management department.