What Is Check Clearing?
Checking clearing system (Clearing System) is a clearing house (clearing house) co-established by many banks in the same city to handle the exchange of transactions between banks. In our country, it is commonly known as bill clearing or bill exchange. In fact, bills have a broad meaning, and there is more than one type of check. The so-called clearing here is limited to checks.
Check clearing system
- This entry lacks an overview map . Supplementing related content makes the entry more complete and can be upgraded quickly. Come on!
- Chinese name
- Check clearing system
- Category
- system
- Related field
- Economic Bank
- Related disciplines
- economic
- Checking clearing system (Clearing System) is a clearing house (clearing house) co-established by many banks in the same city to handle the exchange of transactions between banks. In our country, it is commonly known as bill clearing or bill exchange. In fact, bills have a broad meaning, and there is more than one type of check. The so-called clearing here is limited to checks.
- The reason for the establishment of the check clearing system is due to the development of check usage habits. To avoid trouble, banks still need to set up clearing houses to exchange checks. Before the European War, there were about 800,000 checks a day in London. At that time, the number of banks, excluding branches, was about 20. If each of them sends money to other banks to collect money every day, 380 classes of people must be sent, and how the money collected is returned, let alone how much it costs. The check clearing system does not necessarily require a central bank to be established. For example, New York was able to pass smoothly before the federal preparation system was implemented. However, it is certainly more convenient to have a central bank such as London.
- Check clearing practice
- A bank receives many checks from its customers every day. The total amount settled by the receiving counter and cash at any time is summarized about every 10 or 12 transactions. Transfer of a batch. Cash is delivered to a payment counter for payment. Cheques are handed to the cheque department for delivery and exchange. After receiving the cheques, the cheque department will organize them separately. First, the bank's checks (own cheques) will be put in storage, and then the cheques of other banks will be sorted separately. At the same time, another team member will be accompanied to prepare to receive the bank's check. The Bank, now called Bank A, is a collecting bank. After receiving daily checks from customers (paying banks, or drawer banks) sent to the exchange, That is, Bank A, Bank C, Bank D, etc. each hand in Bank A's cheques. After checking them, they will offset each other. Bank shall pay up to RMB 10,000 of Bank B's cash for settlement. If it is less than 5,000 yuan, it should be repaid to bank B with 5,000 yuan in cash to settle. This is called the Balance Settlement Method. The London Cheque Exchange has been replaced by the Total Set Dement Method in recent years because of the Bank of England Assembly. Its legal system does not offset first, but collects the total amount from the other bank. For example, Bank A received a total of RMB 50,000 from Bank B's cheque, that is, a bank note of RMB 50,000 was issued to Bank B for cash withdrawal from the Bank of England, or it was deposited in the Bank of England and transferred by the Bank of England. Bank A pays cheques of RMB 40,000 to Bank B, that is, Bank B receives RMB 40,000 of cashier's checks and holds them to Bank of England, which is also transferred by Bank of England. In this way, we know that there are three methods: When there is no clearing house, Bank B must get 50,000 yuan from Bank A, Bank A must get 40,000 yuan from Bank B, and a total of 90,000 yuan in cash. If there is an exchange and no central bank transfers the funds on its behalf, Bank B must get back cash from Bank A for 10,000 yuan. There is a central bank transfer, there is no need to solve the problem. [1]