The Significance Of Bank Pfer Settlement

Bank pfer settlement refers to the settlement of monetary funds by directly pferring funds from the bank account of the payment unit (or individual) to the bank account of the receiving unit (or individual) without using cash.

In accordance with the provisions of the bank settlement method, except for the prescribed cash settlement, all pactions, such as commodity pactions, labor supply, capital allocation, and credit pactions, should be carried out through banks in accordance with the bank settlement rules.

The implementation of bank pfer settlement has the following meanings:

First, bank pfer settlement should be carried out, instead of cash circulation with bank credit receipts and payments, the cash flow between all units should be used only if the business below the starting point of settlement and within the scope of cash expenditure can be used to narrow the scope and quantity of cash circulation, so that a large amount of cash can be separated from the circulation sector, thereby creating a condition for the state to organize and regulate money circulation in a planned way, and to prevent and curb inflation.

Second, bank pfer settlement is realized through centralized settlement funds of banks. Banks pfer funds directly from the payment units (or individuals) to the receivables (or individuals) by using various settlement vouchers and bills in the bank account, regardless of the size and complexity of the funds, and regardless of distance. As long as they are at the beginning of the settlement, they can be handled in a timely manner through the banking institutions. The procedures are simple, and the procedures for delivery, inventory and custody of cash settlement are omitted, which is convenient and efficient, thus shortening the clearing time and speeding up the weekly turnover of materials and funds.

Third, the implementation of bank settlement will help to gather idle funds and expand the sources of bank credit funds.

Fourth, the implementation of bank settlement, the unit's income and expenditure, most of the settlement through the bank, the bank through centralized pfer accounts settlement, you can fully understand the economic activities of various units, supervision units conscientiously implement financial discipline, prevent illegal activities, promote units to better comply with financial law and discipline.

Fifth, the implementation of bank pfer settlement can avoid loss of money, robbery, theft and other unforeseen losses due to cash settlement and cash flow. As a result of the pfer of bank accounts, regardless of the size of the money and the length of time, it is well documented.

Sixth, bank settlement and bank supervision should be carried out by all units to fulfill their contracts and abide by credit so as to reduce losses caused by the failure of the other party's credit.