The People’s Bank of China on Tuesday gave its approval to Visa to make preparations for a locally registered bank card clearing organisation, calling the move a major step in the country’s financial opening up in an online statement.

The US card payment giant will have one year to finish its advance arrangements, after which it may submit an application to begin operations, the central bank added.

With a local clearing organisation, Visa would be able to settle domestic yuan transactions directly with its own network.