The Chinese Ministry of Human Resources and Social Security (MoHRSS) and the People's Bank of China (BoC) jointly issued in late July 2011 the Circular on loading the Social Security Cards with Financial Functions, which is attached with an overall plan.

On 19 August 2011, BoC and Tianjin Municipal Human Resources and Social Security Bureau jointly launched the first kind of social security card in China that integrates the functions of social security and financial service.

While being mainly used now for real-time settlement of medical expenses, the new type of multi-purpose social security cards based on the identity card numbers will allow their holders to complete a variety of tasks, including making different social insurance contributions, disbursing social insurance benefits and special employment subsidies as well as withdrawing money from their bank accounts and transferring money between localities like a bank debit card.

By adopting advanced technology, the card has not only combined the social security functions and the financial functions into one chip, but also kept the magnetic stripe reading and writing function of a traditional bank card, thus greatly enhancing the safety and reliability.

In terms of medical insurance, for instance, BoC is developing in collaboration with the social security institutions and hospitals the public service functions such as the self-help registration, quick settlement and electronic medical records with the financial social security IC card as the medium, so as to enable the card holders enjoy more value-added services and realize "a lifetime comfort with one card in hand".

Source: http://news.xinhuanet.com/english2010/china/2011-08/30/c_131084105.htm; http://www.boc.cn/en/bocinfo/bi1/201109/t20110906_1516629.html; http://www.mohrss.gov.cn/page.do?pa=402880202405002801240882b84702d7&guid=efb1082cdc2f4149a46ed74dd3eaaad2&og=4028802023db8cc00123dfaeb60b0354 (in Chinese only); http://www.scio.gov.cn/xwfbh/xwbfbh/wqfbh/2011/0830/index.htm (in Chinese only)

Legislation date: 07.2011