China began issuing multi-purpose social security cards similar to India's unique identification cards, integrating all financial functions to provide fast and convenient services for its citizens.

"The multi-purpose social security cards will allow their holders to complete a variety of tasks including withdrawing money from their bank accounts and transferring money between localities like a bank debit card", Hu Xiaoyi, Minister of Human Resources and Social Security, said.

"As many as 145 million social security cards have been provided to Chinese citizens, as of the end of July, and the number is expected to exceed 190 million by the year's end", he said.

The country aims to issue 800 million social security cards by the end of 2015, covering 60 per cent of the country's total population, according to the country's 12th Five-Year Plan (2011-2015).

"The issuance of the multi-purpose cards is a key step in promoting the development of the country's social security programme and is also an innovation in the nation's financial services," Li Dongrong, Assistant Governor of the People's Bank of China, the country's central bank said.

At present, social security cards are mainly used to pay for medical expenses. In the future, services will be expanded to allow social security cardholders to draw pensions and pay for social insurance programmes, state-run Xinhua news agency quoted Hu as saying.

Hu said that the country is establishing a network that will allow cardholders to use cards across the country. Currently, they have to go back to their locality of residence to settle accounts. When asked about whether national ID cards and social security cards will ever be merged into a single card, Hu said the trend is unlikely to appear for the time being, as ID cards are mainly used for social management, while security cards are designed for acquiring public services.

He dismissed concerns over possible cases of identity theft that could arise from using the cards. "A computer chip, rather than a magnetic strip, is embedded into each card, enabling the card to hold more information and making it more secure," he clarified.

The social security cards will cost between 20 yuan (USD 3.13) and 25 yuan (3.91 USD) in most regions, while those in a special low-income bracket can be exempted from the charge. Hu underlined that it will actually benefit hundreds of millions of people in such a highly mobile society, and may even have a profound bearing on the country's development.