China is likely to adopt the real-name system for saving deposits within the year, central bank governor Dai Xianglong said at a press conference in Beijing on January 19.

Addressing a press conference held by the State Council Information Office, the governor of the People's Bank of China said that as the first step, residents must use their real names when making bank deposits.

At the second step, the computer systems of all the banks will be linked so that the total deposits of any individuals will be known for the payment of income tax on interest.

The governor said the first step is easy and will be taken this year, while the second step may take some time as it demands a great input by the banks.

When the real-name system takes effect this year, current saving deposits accounts under false names will be allowed to be withdrawn and re-deposited using real names, while new accounts must be opened under real names, the governor said.

He claimed that the real-name regulation is consistent with international practices, adding that he does not expect any opposition to the move.

The governor noted that the new rule could have a healthy impact on China's distribution system, the protection of deposit or interest, and the collection of individual income tax. (Xinhua)