SHANGHAI - China's central bank will remove interest rate ceilings on smaller foreign-currency deposits in the Shanghai Free Trade Zone from March 1, the latest in a spate of long-anticipated financial reforms.

Deposits of less than $3 million owned by businesses and agencies registered in the zone or by individuals who have worked in the zone for more than one year will receive the same rate of interest, said the Shanghai branch of the People's Bank of China on Wednesday.

Currently, regulatory caps apply to one-year or other shorter-term deposits in US dollars, Japanese yen, euros and Hong Kong dollars. Deposits worth more than $3 million are not subject to ceilings.