Chinese companies do not have to get permission from the central bank to open deposit accounts in commercial banks, starting from Monday, a measure to improve financial services especially for small and micro businesses, according to the financial authorities.

The policy took effect five months earlier than the scheduled timeline, said Yan Fang, deputy head of the Payment and Settlement Department of the People's Bank of China. A State Council executive meeting in December 2018 decided to cancel all such permissions nationwide by the end of this year.

Before Monday, companies in China had to receive approval from the People's Bank of China, the central bank, as well as from the commercial banks, when they sought to open deposit accounts.

The long application procedure, which used to be nearly a week, will be shortened to around 20 hours, said Zhao Zhuangzhi, general manager of the operation management department of Agricultural Bank of China.

The simplified procedure does not mean an easing of regulation, according to Yan, and the central bank will continue to prevent financial risks through reformed bank account management. "Bank account management is the first line of defense to curb illegal activities, such as money laundering and electronic fraud," she said.

The new policy will based on the real-name registration system, to prevent companies using fake information to illegally obtain loans, Yan added.

Advanced and internet-based technology will be introduced into commercial banks' bank account management, such as facial recognition technology and cross-checking of corporate clients' identity, according to the PBOC official.

The central bank showed that by the end of March, companies in China had opened 57.84 million bank accounts, accounting for 92 percent of the total accounts for entities.

Mao Qun, general manager of the operation management department of Industrial and Commercial Bank of China, said that the related services are running stably, and the efficiency of opening bank accounts has been improved. "The measure can promote companies' access to finance, and support small and micro businesses."

Based on internet technology, ICBC has provided online bank account application services, and corporate clients can apply for new accounts through uploading a video, said Mao.

Since last June, the PBOC started two pilot programs in Jiangsu province and Zhejiang province, canceling central bank permission for local companies.

Some commercial banks have noticed and curbed risks in the opening of bank accounts, when some companies provided false information or suspicious registered addresses, according to a document from the PBOC. "After the reform, commercial banks will independently take all responsibilities of managing bank accounts," the document said.

"The central bank, in the meantime, will launch a supervisory system to monitor the growth of companies' accounts," said Yan.