The Bank Draft is an instrument written by the bank for unconditional payment of actual settlement amount to the payee or the instrument holder upon presentation. The opening bank of the bank draft is the payer.
It can be classified into national bank draft and regional bank draft according to the scope of usage; or may be classified into account transfer bank draft and cash bank draft according to means of payment.
Functions and Features
1) Draft holders with a bank settlement account at «First Sino Bank» can use the bank draft drawn by the Bank for payment on sight;
2) For the inter-bank bank draft written by «First Sino Bank», the draft is accepted through entrusted ICBC and can be therefore used at all regions with ICBC outlets.
When the parties to the deal are uncertain of the deal amount or the success of the deal, the parties may adopt bank draft. It is applicable for settlement by institutions and individuals for payments in all types of economic activities.
Currency and Tenor
RMB is the currency in service. The presentation payment tenor on the bank draft is one month since the draft is issued.
Bank draft application in three copies with specimen seals and signatures.