SHANGHAI, July 9 -- INDIVIDUALS and companies can now use checks to pay for things in any city across China as a check imaging system was put into use by the central bank.

The system, designed to promote wider use of checks among consumers, has functioned well since it began operation on June 25. The number of checks written is on the rise, the People's Bank of China said, the Beijing News reported today.

Previously, checks could only be used in the city where it was issued. The central bank started a trial for trans-city checks in Shanghai, Beijing and Tianjin, as well as the provinces of Guangdong and Hebei on December 18.

The new service will allow users to get the money into their accounts within two or three hours after checks are cashed, the report said. However, checks are capped at a maximum of 500,000 yuan (US$65,789) per transaction.

"The nationwide check imaging system is a big step as we seek more payment avenues to meet China's economic growth," said Su Ning, deputy governor of the central bank, in previous reports.

To encourage people, the central bank will ask people to use checks when paying gas, telephone and water bills and for school tuition payments, the report said.

In China, checks are used more by companies as most people use cash, unlike in overseas markets where checks are widely accepted as a means of payment for goods and services.

China's booming economy has led to a closer link between different regions, making it more important to have a trans-city payment method.

One reason for boosting the use of checks is to reduce cash transactions and minimize the risks of counterfeit notes appearing on the market. The central bank is also encouraging the use of bank cards as another means to cut cash dealings.

Bank card purchases are expected to account for 30 percent of retail sales in big cities by 2008. Small and medium cities will see bank card use rise to at least 10 percent next year.