ICBC has officially launched personal banking category III account service since June 1. Personal customers can apply for category III accounts by registering and logging in ICBC’s mobile banking terminal.

According to an official of ICBC, after opening category III account online, customers can link to a physical debit card account (category I account) under the same name. Activated through transfer, the account can be used for consumption, payment of utility service and other purposes. The category III account, as a virtual digital account, will not be accompanied by any physical token like a bank card. It can be used along with ICBC e-Payment or third party payment in online shopping, bill payment and other scenarios of online consumption with a balance up to RMB 1,000. No management or service fee will be charged for category III accounts and transfers with linked accounts.

According to experts in the industry, ICBC’s category III account service of personal banking will not only satisfy customers’ daily need for small and quick payment, but also protect fund and information security through classified account management and provide inclusive, safe and convenient payment service. As a full-functional bank account, the category I account is analog to a "coffer", while the category III account, mainly used for online small amount consumption and bill payment, is like a "purse". Managing the two accounts separately, i.e., separating "coffer" and "purse", may well avoid the risk of online payment fraud and protect customers' fund security.

On December 25 last year, the People's Bank of China issued the Notice on Improving Personal Bank Account Services and Strengthening Account Management, requiring the establishment of a classified management mechanism of bank accounts, where personal bank accounts are classified according to the identity verification approach and personal RMB accounts are classified into category I, category II and category III with different scopes of service and authorities. The Notice states that customers can open category I, category II and category III accounts at bank counter. 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. Otherwise, they can only open category II and category III accounts. With application submitted 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 financial products, transfer, consumption and bill payment, cash deposit and withdrawal and other services for customers with category I account. For customers having category II account, banks can provide services such as deposit, purchase of investment financial products, transfer of limited amount, consumption and bill payment of limited amount. In addition, different functions and amounts of transfer should be set based on the channel of account opening. Banks can provide consumption and bill payment service with limited amount for customers having category III account. However, category II and category III accounts allow no cash deposit and withdrawal, with no physical cards to be issued. In terms of amount limit, the People's Bank of China sets the daily payment limit for category II account at RMB 10,000 and balance limit of category III account at RMB 1,000.