Mumbai: Citigroup, HSBC Holdings and two other banks are expected to be the first foreign banks that will issue local-currency debit cards to consumers in China, a senior banking regulator said.

Citigroup, HSBC and Bank of East Asia have already applied to the Shanghai branch of the China Banking Regulatory Commission for approval to issue debit cards while Standard Chartered was expected to apply soon, Wang Huaqing, assistant to the chairman of the CBRC, said.

Initially, foreign banks will be allowed to issue local-currency debit cards, while permission for dual-currency credit cards are expected to come after that.

"Currently, we are receiving applications only for debit card issuance instead of credit card issuance, due to current Chinese banking rules," Wang told reporters on the sidelines of a banking summit in Shanghai.

China, the world''s fourth-largest economy, had made a commitment in late May, as part of its "strategic economic dialogue" with the United States, to allow foreign-invested banks to offer yuan-denominated credit and debit cards under their own brands.

The four banks are also the first foreign banks to get Beijing''s approval for local incorporation earlier this year. Foreign banks incorporated outside China are not allowed to issue any type of bank cards independently.

Debit cards in China allow the user to withdraw cash from automatic teller machines (ATMs) or to make payments directly to merchants that are bank partners, within the amount deposited in the account.

Citigroup and Bank of East Asia have said they were in talks with China Unionpay, the sole operator of China''s interbank transaction network, for a partnership in debit card services.

Foreign banks, including HSBC and Citigroup, have issued joint cards with local partners in China over the past few years. HSBC has issued over 2.4 million co-branded credit cards in China till now.