PBOC lauches e-commerce bill system

China's central bank has formally launched the e-commerce bill system. It's a sign that China's commercial bills have entered a new era.

Currently, paper bills and bank cards make up China's non-cash payment instruments. Companies rely on the paper bill. But commercial bills of exchange have high trading cost and aren't very efficient. Instances of fake bills occur from time to time.

An operation e-commerce bill system means enterprises can deal with the businesses directly via on-line bank terminals.

Su Ning, Vice Governor, People's Bank of China, said, "The system can reduce the risks made from paper bills by a large degree. As the longest payment term of this bill system extends to one year, it's good for commercial banks to provide liquidity capital loans to small and medium-sized enterprises through this kind of system."

So far, eleven nationwide banks, two local commercial banks and three agricultural financial institutions have launched the e-commerce bill system.