Overview
A cheque is an instrument issued by the drawer, directing the bank to provide cheque deposit services, to unconditionally pay a specific amount to the beneficiary or bearer upon presentation.
Benefits
By functions, cheques are divided into cash cheques and transfer cheques. Cash cheques are used to withdraw cash from the bank deposit account, while transfer cheques are used for fund transfer and are transferable by endorsem*nt during its validity. Cheques provide safe, convenient and flexible settlement, and meet customers' demands for a broad range of settlements.
Procedures
1. Buy cheque: The customer fills out the instrument and Settlement Voucher Request Form, affixes the seal for the account, and purchases cheques from the account opening bank.
2. Issue cheque: The customer issues cash or transfer cheques pursuant to relevant rules and in line with his/her payment needs, affixes seal at the designated area, and sets and writes the payment password at the designated area if password entry is required.
3. Honor cheque: After the customer delivers the cheque to the beneficiary, the beneficiary presents the cheque to the bank for payment, and the bank will review and pay the cheque in accordance with applicable rules.
FAQs
1. Hong long is the validity of a cheque?
The deadline for presentation of a cheque for payment is the tenth day following issuance, and extended to the next working day if it falls on a holiday.
2. What is the minimum amount for a cheque to be issued?
No minimum amount is required for a cheque to be issued under the Measures for Payment and Settlement.
3. What fees are charged on cheques?
RMB0.20 is charged for the cost of each cheque sold; a fee of RMB0.6 is charged on each cheque issued, or RMB1.00 if a sorting machine is used.
4. What penalty will be imposed on issuance of a rubber cheque?
If the drawer issues a rubber cheque, or the seal is inconsistent with the specimen seal, or the payment password is incorrect, we will dishonor the cheque and charge a fine equal to 5% of the check amount or RMB1, 000, whichever is higher; the bearer may claim a compensation equal to 2% of the cheque amount against the drawer. In the case of repeated violations, ABC will stop such issuances.
5. How is a cheque transferred by endorsem*nt?
Write the full name of the cheque taker in the "endorsee" section and affix in the box below the seal of the beneficiary indicated on the front of the cheque. For the second endorsem*nt, write the full name of the second cheque taker in the second "endorsee" cell and affix in the box below the specimen seal of the first cheque taker (the first endorsee). The cheque may be transferred any time during the validity period. A separate sheet for endorsem*nt may need to be attached.
Tips
1. Keep your cheque and authorized seal or payment cipher separate.
2. Do not affix seal on blank cheques.
3. Please immediately report to your account opening bank any loss of cheques, seals or payment cipher.
Note: Please contact your local branch for detailed information about the service.
