Measures for Bank Settlement
Yin Fa [1988] No. 39
December 19, 1988
Chapter I General Provisions
Article 1 The Measures for Bank Settlement is formulated in accordance with the Tentative Provisions of the People's Republic of China for Bank Management and the Reports on the Bank Settlement Reform approved and transferred by the State Council, and with the purpose of speeding up the capital turnover and the commodity circulation and the healthy development of Chinese socialist commodity economy.
Article 2 Bank settlement is the intermediate for various capital liquidations in the social economy activities as well as a major business of banks.
Article 3 Banks shall organize settlement rationally and make settlement accurately, timely and safely according to the economy transactions and manage settlement in line with the Measures, so as to guarantee smooth settlement and provide services for the development of socialist commodity economy.
Article 4 The Measures shall be applicable to the RMB capital settlement of various units and individuals within the territory of People's Republic of China.
Article 5 Units and individuals shall handle settlement in accordance with the laws and regulations of the State as well as the Measures.
Article 6 Account transfer and settlement must be handled for various economy transactions except those that are eligible to use cash according to the cash administration provisions of the State.
Article 7 Where the units and individuals open the accounts in banks for their account transfer and settlement, they must possess sufficient capitals for the payment in their accounts. Where the individuals fail to open an account, they are eligible to process the account transfer and settlement via submitting the accounts to the banks.
Article 8 Bills and settlement vouchers shall be the basis for the settlement. Units and individuals shall process the settlement with the unified bills and settlement vouchers as stipulated by banks. They shall be accurately filled with clear handwriting, complete seals and the full names of the units and banks. Characters as province (autonomous region and municipality directly under the Central Government) and county (city) shall be indicated for cross-regional settlement.
Bills and settlement vouchers shall be strictly prohibited from being forged and fabricated. Violators shall be investigated in line with law.
Article 9 Banks, units and individuals, while handling settlement, shall comply with the following principles:
1. Be creditable and make the payment according to the contracts;
2. Money shall be deposited into its real owners' accounts, and shall be dominated by such owners.
3. Banks shall not pay for the accounts and are expected to be reimbursed.
Article 10 Banks shall examine the bills, settlement vouchers and related testimonials according to the Measures. Where the economic disputes arise between the payers and receivers, they shall settle such disputes by themselves, or apply for a mediation or decision to the arbitration authorities and the People's Court.
Article 11 Banks shall keep the deposits of units and individuals confidential in line with law, and shall guarantee their independent rights of dominion to the capitals. Except for the supervision and administration items that are stipulated by the State laws and provisions and are authorized by the State Council to Head Office of the People's Bank of China, banks shall not accept any supervision items that are consigned by other departments and local governments. They must not process the inquire or account deduction for any units, or suspend the normal payment of any units and individuals' deposits.
Article 12 Banks shall implement, for the purpose of settlement, the management systems that are combined with the centralized and unified management and grading management. Head Office of the People's Bank of China shall compile the unified settlement provisions, and shall organize, administrate, coordinate and rule the settlement of the whole nation.
Branches of the People's Bank of China in all provinces, autonomous regions and municipalities directly under the central government shall compile the implementing rules according to the unified settlement provisions, and shall report to the Head Office for record filing. Branches and sub-branches of the People's Bank of China shall organize, administrate, coordinate and rule the settlement of local areas where they are located.
Head offices of professional banks may, in light of their actual circumstances, compile supplementary provisions according to the unified settlement provisions. But they shall report to Head Office of the People's Bank of China for approval prior to their compilation. Superior banks of all levels of the professional banks shall organize, administrate, coordinate and rule the settlement of their systems.
Various banks and other financial institution shall strictly implement the unified settlement provisions stipulated by Head Office of the People's Bank of China; they are prohibited from modifying or changing the provisions without the approval of Head Office of the People's Bank of China.
Head offices of professional banks and branches of the People's Bank of China are eligible to implement the pilot specified measures according to their needs. But they shall report to Head Office of the People's Bank of China for approval prior to their trial implementation.
Chapter II Settlement Varieties
Article 13 Bank Draft
1. Bank draft shall refer to the bills that are issued by the banks to the remitters for his/her account transfer settlement or cash withdrawal in other regions after the remitters submit and deposit their money to local banks.
2. Where the units, individual business and individuals need to make various payments, they are eligible to use the bank drafts.
3. The issuance and payment of bank drafts shall be restricted within the People's Bank of China and all professional banks' banking institutions that are involved in the "National Inter-bank System"; Where the bank drafts for account transfer are issued by the cross-system banks, payment for such drafts shall be made after submitting, via the bill transfer in the same city, the bank drafts and payment circular to related banks in the same city for their examination and approval; they shall be processed in line with related provisions in provinces, autonomous regions, municipalities directly under the central government, and the cross-provincial and cross-city economic regions.
Where a remitter opens an account in the bank that are unable to issue the bank drafts, and such remitter need to use the bank drafts, the remitter shall transfer their money to a neighboring bank that is able to issue bank drafts.
4. All bank drafts shall be inscribed.
5. The minimum transferred amount for the bank drafts shall be RMB 500.
6. Bank drafts shall be encashed in 1 month (regardless of the odd month or the lesser month always calculated at the same day of the following month; and the due day shall be postponed in case of the official holidays).The acceptance banks shall not accept the overdue drafts.
7. Where a remitter applies for processing the bank drafts, he/she shall fill in the "Letter of Bank Draft Consignment" provided by the issuance banks, stating such contents as the acceptance address, full name of the payees and purpose (this item can be omitted for the military products), etc.
Where the remittees are definite, name of the units, individual business and individuals shall be specified. Where the remittees are un-definite, name of the personnel designated by the remitters shall be specified.
Where the individual business or individuals need to withdraw cash from an acceptance bank, they shall state the name of the acceptance bank and fill in the characters of "Cash" and the sum of account transfer in the column of "Amount of Account Transfer".
Where the re-transfer is prohibited, it shall be specified in the remark column.
8. Where the issuance banks accept the letter of bank draft consignment, they shall issue the bank drafts after they confirm the accounts are received. Where the individual business or individuals need to withdraw cash, they shall fill in such characters as "Cash" and the sum of account transfer in the column of "Amount of Account Transfer". They shall also stamp the stipulated seals and press and print the account transfer amount with the pressing machine, and submit the drafts and payment circular to the remitters.
9. Remittees are eligible to process the settlement for the bank drafts of the specified remittee units or individual business. Where the remittees are individuals, they are eligible to process the settlement to the units or individual business in the acceptance sites with the endorsed bank drafts for account transfer.
10. Units or individual business shall examine the contents as follows when they accept the bank drafts:
(1) Whether the remittees or endorsees are the said remitters;
(2) Whether the bank drafts are within the payment term and the date, amount and other contents are accurately filled in;
(3) Whether the seals are clear and there are amounts pressed and printed with the pressing machine;
(4) The bank drafts and payment circular shall be complete and consistent; and
(5) Whether the testimonials or certificates of remitters or endorsers are accurate and whether the names in the remitters' certificates are consistent with those on their endorsement.
......
Yin Fa [1988] No. 39
December 19, 1988
Chapter I General Provisions
Article 1 The Measures for Bank Settlement is formulated in accordance with the Tentative Provisions of the People's Republic of China for Bank Management and the Reports on the Bank Settlement Reform approved and transferred by the State Council, and with the purpose of speeding up the capital turnover and the commodity circulation and the healthy development of Chinese socialist commodity economy.
Article 2 Bank settlement is the intermediate for various capital liquidations in the social economy activities as well as a major business of banks.
Article 3 Banks shall organize settlement rationally and make settlement accurately, timely and safely according to the economy transactions and manage settlement in line with the Measures, so as to guarantee smooth settlement and provide services for the development of socialist commodity economy.
Article 4 The Measures shall be applicable to the RMB capital settlement of various units and individuals within the territory of People's Republic of China.
Article 5 Units and individuals shall handle settlement in accordance with the laws and regulations of the State as well as the Measures.
Article 6 Account transfer and settlement must be handled for various economy transactions except those that are eligible to use cash according to the cash administration provisions of the State.
Article 7 Where the units and individuals open the accounts in banks for their account transfer and settlement, they must possess sufficient capitals for the payment in their accounts. Where the individuals fail to open an account, they are eligible to process the account transfer and settlement via submitting the accounts to the banks.
Article 8 Bills and settlement vouchers shall be the basis for the settlement. Units and individuals shall process the settlement with the unified bills and settlement vouchers as stipulated by banks. They shall be accurately filled with clear handwriting, complete seals and the full names of the units and banks. Characters as province (autonomous region and municipality directly under the Central Government) and county (city) shall be indicated for cross-regional settlement.
Bills and settlement vouchers shall be strictly prohibited from being forged and fabricated. Violators shall be investigated in line with law.
Article 9 Banks, units and individuals, while handling settlement, shall comply with the following principles:
1. Be creditable and make the payment according to the contracts;
2. Money shall be deposited into its real owners' accounts, and shall be dominated by such owners.
3. Banks shall not pay for the accounts and are expected to be reimbursed.
Article 10 Banks shall examine the bills, settlement vouchers and related testimonials according to the Measures. Where the economic disputes arise between the payers and receivers, they shall settle such disputes by themselves, or apply for a mediation or decision to the arbitration authorities and the People's Court.
Article 11 Banks shall keep the deposits of units and individuals confidential in line with law, and shall guarantee their independent rights of dominion to the capitals. Except for the supervision and administration items that are stipulated by the State laws and provisions and are authorized by the State Council to Head Office of the People's Bank of China, banks shall not accept any supervision items that are consigned by other departments and local governments. They must not process the inquire or account deduction for any units, or suspend the normal payment of any units and individuals' deposits.
Article 12 Banks shall implement, for the purpose of settlement, the management systems that are combined with the centralized and unified management and grading management. Head Office of the People's Bank of China shall compile the unified settlement provisions, and shall organize, administrate, coordinate and rule the settlement of the whole nation.
Branches of the People's Bank of China in all provinces, autonomous regions and municipalities directly under the central government shall compile the implementing rules according to the unified settlement provisions, and shall report to the Head Office for record filing. Branches and sub-branches of the People's Bank of China shall organize, administrate, coordinate and rule the settlement of local areas where they are located.
Head offices of professional banks may, in light of their actual circumstances, compile supplementary provisions according to the unified settlement provisions. But they shall report to Head Office of the People's Bank of China for approval prior to their compilation. Superior banks of all levels of the professional banks shall organize, administrate, coordinate and rule the settlement of their systems.
Various banks and other financial institution shall strictly implement the unified settlement provisions stipulated by Head Office of the People's Bank of China; they are prohibited from modifying or changing the provisions without the approval of Head Office of the People's Bank of China.
Head offices of professional banks and branches of the People's Bank of China are eligible to implement the pilot specified measures according to their needs. But they shall report to Head Office of the People's Bank of China for approval prior to their trial implementation.
Chapter II Settlement Varieties
Article 13 Bank Draft
1. Bank draft shall refer to the bills that are issued by the banks to the remitters for his/her account transfer settlement or cash withdrawal in other regions after the remitters submit and deposit their money to local banks.
2. Where the units, individual business and individuals need to make various payments, they are eligible to use the bank drafts.
3. The issuance and payment of bank drafts shall be restricted within the People's Bank of China and all professional banks' banking institutions that are involved in the "National Inter-bank System"; Where the bank drafts for account transfer are issued by the cross-system banks, payment for such drafts shall be made after submitting, via the bill transfer in the same city, the bank drafts and payment circular to related banks in the same city for their examination and approval; they shall be processed in line with related provisions in provinces, autonomous regions, municipalities directly under the central government, and the cross-provincial and cross-city economic regions.
Where a remitter opens an account in the bank that are unable to issue the bank drafts, and such remitter need to use the bank drafts, the remitter shall transfer their money to a neighboring bank that is able to issue bank drafts.
4. All bank drafts shall be inscribed.
5. The minimum transferred amount for the bank drafts shall be RMB 500.
6. Bank drafts shall be encashed in 1 month (regardless of the odd month or the lesser month always calculated at the same day of the following month; and the due day shall be postponed in case of the official holidays).The acceptance banks shall not accept the overdue drafts.
7. Where a remitter applies for processing the bank drafts, he/she shall fill in the "Letter of Bank Draft Consignment" provided by the issuance banks, stating such contents as the acceptance address, full name of the payees and purpose (this item can be omitted for the military products), etc.
Where the remittees are definite, name of the units, individual business and individuals shall be specified. Where the remittees are un-definite, name of the personnel designated by the remitters shall be specified.
Where the individual business or individuals need to withdraw cash from an acceptance bank, they shall state the name of the acceptance bank and fill in the characters of "Cash" and the sum of account transfer in the column of "Amount of Account Transfer".
Where the re-transfer is prohibited, it shall be specified in the remark column.
8. Where the issuance banks accept the letter of bank draft consignment, they shall issue the bank drafts after they confirm the accounts are received. Where the individual business or individuals need to withdraw cash, they shall fill in such characters as "Cash" and the sum of account transfer in the column of "Amount of Account Transfer". They shall also stamp the stipulated seals and press and print the account transfer amount with the pressing machine, and submit the drafts and payment circular to the remitters.
9. Remittees are eligible to process the settlement for the bank drafts of the specified remittee units or individual business. Where the remittees are individuals, they are eligible to process the settlement to the units or individual business in the acceptance sites with the endorsed bank drafts for account transfer.
10. Units or individual business shall examine the contents as follows when they accept the bank drafts:
(1) Whether the remittees or endorsees are the said remitters;
(2) Whether the bank drafts are within the payment term and the date, amount and other contents are accurately filled in;
(3) Whether the seals are clear and there are amounts pressed and printed with the pressing machine;
(4) The bank drafts and payment circular shall be complete and consistent; and
(5) Whether the testimonials or certificates of remitters or endorsers are accurate and whether the names in the remitters' certificates are consistent with those on their endorsement.
......