SHENZHEN banks will lift their controversial restrictions on daily cash withdrawals before Jan. 1, 2008, a People's Daily report said yesterday.

The newspaper cited an anonymous source as saying the banks had received a verbal notice from the Shenzhen branch of the People's Bank of China during the weekend to lift the restrictions.

Officials with the central bank's Shenzhen branch, which had ordered the curbs, refused to comment yesterday.

Premier Wen Jiabao criticized Shenzhen banks Monday for limiting cash withdrawals, saying other tactics could be used to stem the illicit flow of funds to Hong Kong.

"[We] ought to take the necessary measures in accordance with the law," Wen said yesterday, during a visit to Singapore for the Asean Summit. He said the banks had acted in good faith, but "we should have taken measures that were more effective and measures that were acceptable to the public."

The banks have been limiting over-the-counter and ATM withdrawals in an attempt to stem a massive flow of illegal money, estimated to be in billions of yuan, used for speculating in the Hong Kong stock and property markets.

A daily limit of 30,000 yuan has been set for over-the-counter transactions by individuals while weekly and monthly limits have been limited 50,000 yuan and 200,000 yuan respectively. Corporate withdrawals are limited to 100,000 yuan each day, 200,000 yuan each week and 500,000 yuan each month.

But the controls have faced a backlash from businesses and the general public, being criticized for violating bank customers' right to withdraw money.

At present, Shenzhen is the only mainland city to have such curbs.

Half of the nation's cash withdrawals were made in Shenzhen in the first nine months this year and the October figure rocketed, statistics from the central bank's Shenzhen branch have shown.

The curbs have made media headlines since it was imposed Nov. 2.

The central bank's Shenzhen branch earlier this month defended the limits as ways to tackle tax evasion and money laundering. (By Li Jing)