Bank¡¯s Purchase of Private Bills

Concept of Product

This is the business whereby domestic residents or nonresidents apply to the bank for exchanging the draft, cashier¡¯s cheque and traveler¡¯s cheque in their possession, which are issued by domestic or foreign bank, for forex, while the bank will examine the validity of the bills and pay foreign banknotes and spot exchange or settle the exchange after deducting banking charges and interest.

Service Objects

Suitable for the foreign currency bills, including draft, cashier¡¯s cheque, cheque and traveler¡¯s cheque, that are held by persons and issued by a domestic or foreign bank, this is a service provided by our branches and sub-branches that handle the business.

Advantages of Product

1.        Bank¡¯s purchase of private bills eliminates the inconvenience of customers caused by carrying a large amount of cash in foreign currency;

2.        For the purchase of private bills, it is required to verify bank¡¯s signature, and the customer is required to sign and endorse the bill, so the safety is relatively high;

3.        When the bank uses the mode of payment after receipt, the customer need not open a forex passbook and may withdraw or transfer the money immediately after payment;

4.        For the traveler¡¯s cheque and bank draft issued by an overseas bank that has signed a contract with us, we can pay cash immediately at sight (Cash Letter and deduct the interest).

Process

The customer endorses the bill and submits it to the bank for examination. If it is a traveler¡¯s cheque and bank draft issued by an overseas bank that has signed a contract with us, we will cash it immediately after deducting the costs. For other bills, we will be the collecting bank for the overseas issuing bank and make payment to the customer after receipt of the amount and deduction of banking charges. The cash may be saved into bank passbook, foreign currency card, withdrawn or transferred

Policy Provisions (Bank¡¯s purchase of private bills)

1.        For the personal forex earnings of residents that are remitted from abroad under current account, if it is necessary to pay foreign banknotes and withdraw cash out of a spot exchange account, the following rules will apply:

To withdraw less than USD 10,000 (included) worth of foreign banknotes in a day in lump sum or accumulation, the formalities may be fulfilled directly in the bank; to withdraw more than the above amount, the same should be reported in advance to the administration of foreign exchange at the location of the bank for recordation along with valid personal identity certificate and the evidences proving the purpose of the banknotes to be withdrawn. The bank will process the formalities for withdrawing foreign banknotes on the strength of the valid personal identity certificate and the Recordation Form for Withdrawal of Foreign Banknotes signed by the administration of foreign exchange.

2.        For the residents who deposit the forex remitted in or brought in as bills into foreign currency account (including exchange account or banknote account), the following rules will apply:

Non-operational forex under domestic personal current account can be saved into forex savings account (including exchange account and banknote account), irrespective of the amount;

3.        The personal settlement of exchange of residents (inbound remittance, deposits or settlement of banknotes) is subject to the following provisions:

(1)       The settlement of exchange within the personal annual limit is transacted in the bank on the strength of valid personal identity certificate;

(2)       If non-operational settlement of exchange under domestic personal current account exceeds the annual limit, it will be transacted in the bank on valid personal identity certificate and the evidentiary materials for the relevant amount of trade.

4.        The above evidentiary materials mean those for personal patent, copyright, author¡¯s remuneration, consulting fees, insurance benefits, profits, dividends, interest, annuities, pension, employee compensation, alimony, donated fund and other forex earnings under current account; the earnings under capital account, including personal investment within the territory and loans from overseas banks, should be reported to the administration of foreign exchange for verification and approval before the bank goes through the formalities for opening account, receiving forex and payment.

5.        To receive remittance of more than USD 2,000 (excluded) or equivalent, the payee needs to go through the formalities for declaring international income and expenditure.

6.        Under the state system for reporting and recording large-amount remittance and dubious remittance, the customer needs to provide information and answer questions, while the bank will be responsible for keeping the same confidential.