Zhang Xin, deputy director of the People's Bank of China Shanghai Head Office, said it is essential to practice effective risk controls for lenders after March 1. The bank will pay close attention to foreign currency flows within the FTZ.

"The liberalization of interest rates for smaller accounts of foreign currencies is an extremely important element in the whole process of interest rate liberalization in China. It is a decisive part of future reforms and the introduction of policies for interest rate liberalization," said Zhang.

Zhang said he would like to re-address the role of financial reforms in the FTZ as a supporting power to the development of the real economy.

Currently the combined outstanding value of foreign currency deposits within the FTZ is about $4.8 billion, among which $1.2 billion is from smaller accounts.

Shanghai's FTZ was launched in September 2013 to help the development of economic reforms and financial innovations as well as to boost trade in the hope of subsequently duplicating the experience throughout the country.

"The FTZ is still an onshore market where gradual steps will be taken to liberalize the financial market," Zhang said.

Lenders will be required to file reports on foreign currency deposit rates to the central bank's Shanghai Head Office on a weekly basis, according to a statement it made.

Companies registered with the FTZ can deposit yuan or foreign currencies at banks. Individuals who have worked at FTZ-based companies for at least one year can also do so, according to the new regulation.

Tu Guangshao, vice-mayor of Shanghai, said the introduction of new policies for the FTZ is like a "television series: with policies on capital markets to be introduced in the future".