The People's Bank of China and the State Development Planning Commission are working on the association's proposal, which was submitted last August, according to the report.

The proposed charges cover more than 40 online, phone and branch services, according to Yang Lie, ex-vice secretary-general of the CBA and one of the drafters for the proposal. He said the charges would target corporations and not individual customers.

Yang described the proposal as a big change for Chinese people who have been accustomed to free banking services.

In China, income from service charges accounts for a small portion of the bankers' total profits.

In overseas banks up to 40 percent of profits come from service charges. In China 1 to 2 percent of profits in state-owned banks come from service charges and in commercial banks 10 percent of profits come from service charges.

Last month, Citibank started renminbi business in Shanghai, charging for its services here. The practice has sparked a widespread dispute in the city.

(eastday.com April 20, 2002)