Wary citizens grumble as banks try to go paperless

(Ecns.cn)--Some Chinese banks are reportedly attempting to cancel their bankbook services in an effort to be more "efficient" and "environmentally friendly," which has provoked outrage among customers and caused speculation about possible ulterior motives, revealed China Newsweek on Friday.

Liang Juan, a resident of Dongcheng District, Beijing, was rejected by China Construction Bank (CCB) when she tried to apply for a new bankbook earlier this month.

Liang said the bank told her they had run out of new bankbooks and encouraged her to get a debit card instead.

"You need to pay an annual fee for using a debit card. My pay card was issued by CCB, which charges 10 yuan every year, yet the bankbook is issued free of charge," said Liang.

She later tried other banks, including the Industrial and Commercial Bank of China (ICBC)， but was given the cold shoulder there too.

"It is true that residents can only use bankbooks at some designated outlets in Beijing. We're trying to reach a 'green' service goal by saving paper," an ICBC employee told the Global Times.

Liang's experience soon sparked heated debates among the public, who are worried about the possibility of an outright cancellation of new bankbook applications and have also become dissatisfied with attempts by banks to promote paid services.

A survey by China Newsweek reveals that the four state-owned commercial banks and the Postal Service Bank, which are the main issuers of free bankbooks, all charge a 10-yuan annual fee for debit cards.

The promotion of the cards has also upset many senior citizens, who find them less convenient.

"I don't like it if banks make us only use cards, because the ATM passwords and procedures are difficult to remember," noted a senior resident surnamed Wu who lives in Chaoyang District, Beijing.

"I prefer bankbooks, and even though I have to wait up to an hour every time I go to the ICBC, banks should respect our choices," he added.

In response to this, the Beijing Consumer Association (BCA) also issued a statement on February 9 criticizing some banks in Beijing. "Cancelling the bankbook service is unreasonable and disrespectful to clients," said the BCA, "especially for seniors who are not used to bank cards."

Some young people also oppose the policy. Wang Nan, a young white collar whose wage card was issued by Bank of China (BOC)—one of the four state-owned commercial banks—told China Newsweek that "applying for a card is completely unnecessary."

Wang added that "most of the ATMs on streets belong to the big four state-owned commercial banks, which must require heavy investment. So, it's not surprising that these institutions are charging high fees."

The cancellation of bankbooks may also cause some legal problems, pointed out Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, during an interview with China Newsweek.

"The move may put customers into a weak position in case of disputes, since they would carry out transactions mostly through computers, which makes it hard for customers to see or prove any errant operations by the banks," Bai analyzed.

However, He Ziyun, a banking professor at the University of International Business and Economics, is seemingly supportive of the new rule, pointing out that it is a future trend and a move towards electronic banking, which uses computers and electronic technology as a substitute for checks and other paper transactions.

Guo Tianyong, professor at the Research Center of the Chinese Banking Industry of the Central University of Finance and Economics, also added that the cancellation of bankbook services is a change designed to cope with current market needs.

Yet Guo added that "the banks should provide various options instead of allowing no flexibility. When customers want to apply for bankbooks, the banks should try to meet their needs somehow."

"In addition, related supervisory departments should introduce and tighten regulations on finance and banking to clearly define paid and unpaid services and prevent arbitrary charges," said Guo.