BEIJING (REUTERS) - China's central bank has completed drafting regulations for an international payment system that would facilitate greater usage of the yuan globally, banking industry sources said on Tuesday.

The China International Payment System (CIPS) will be launched in early October, the sources said. The system will allow large international companies doing business with China to settle payments faster.

Among the first batch of banks qualified to participate are 11 Chinese banks and eight Chinese branches of foreign banks, including HSBC, Citigroup and Standard Chartered PLC, the sources said.

The launch of CIPS will remove one of the biggest hurdles to internationalising the yuan, and should greatly increase global use of the currency by cutting transaction costs and processing times.

The People's Bank of China did not immediately comment when contacted by Reuters.