The Significance Of Bank Transfer Settlement

Bank transfer settlement refers to the settlement of monetary funds by directly transferring 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 the enterprises, public institutions, organs, groups, and military units shall, in accordance with the provisions of the bank settlement method, implement the transfer settlement through the bank's settlement method. The implementation of bank transfer settlement has the following meanings: first, the implementation of bank transfer settlement, and the transfer of bank accounts, the use of bank credit and payment instead of cash circulation, so that the economic transactions between units, only the business below the starting point of settlement and within the scope of cash expenditure, can only be used in cash, which reduces the scope and quantity of cash circulation, leaving a large amount of cash out of circulation, thus creating a condition for the state to organize and regulate money circulation in a planned way, and to prevent and curb inflation. Second, bank transfer settlement is realized through centralized settlement funds of banks. Banks transfer funds directly from payment units (or individuals) to receivables (or individuals) by using various settlement vouchers and bills in the bank account, regardless of the size of the account, the amount of money, or the distance between them. 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 turnover of materials and funds. Third, the implementation of bank settlement will help to gather idle funds and expand the source of bank credit funds. Fourth, the implementation of bank settlement, the income and expenditure of the units, most of which are handled through the bank settlement. Through Centralized Settlement of accounts, banks can fully understand the economic activities of various units, supervise the implementation of financial discipline, prevent illegal activities and promote better compliance with financial laws and regulations. Fifth, the implementation of bank transfer settlement can avoid loss of money, theft, theft and other unforeseen losses due to cash settlement and custody. As a result of the transfer of bank accounts, regardless of the size of the money and the length of time, it is well documented. In case of an accident, it is also easy to recourse, thereby ensuring the security of settlement funds. Sixth, bank settlement, bank supervision and implementation of the contract, abide by the credit, thereby reducing the loss caused by the other party's untrustworthiness.