Name
Cheque withholding
Introduction
When the payee submits and deposits the transfer cheque within the entire province, the receiving bank withholds the physical cheque, and presents the drawer's account-opening bank for payment via image information of the cheque.
Features
1. The business procedures remain unchanged, the universal use of the check is realized in regions promoting this check;
2. Funds arrive the account in an accurate and safe manner.
Scope of Application
It is applicable to both corporate customers and individual customers for various account settlements within the confine of domestic inter-province where People's Bank of China promotes the business of cheque withholding.
It is currently available in Bank of China Gansu branch.
Process
1. The drawer(payer) draws a cheque and affixes the seal which is reserved in the bank;
2. Within the period of payment, the bearer (payee) may endorse and transfer this cheque to the endorsee. During the endorsement, the endorsee's name and endorsement date should be written by the payee or endorser and the seal should be affixed on it;
3. The payee conducts consignment collection of the cheque (cross-city or inter-city) in the account-opening bank; afterwards, the receiving bank withholds the physical cheque. The receiving bank will transfer the payment to payee's account after the payment is made by the paying bank.
Kind Reminder
The validity period of the cheque is ten days; please cash the cheque in the bank before the expiry day.
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