Banking News
- Checks valid in all parts
Date: 10-Jul-2007 Sources: (Xinhua Online)
BEIJING, July 10 -- The central bank is encouraging check use by launching a national image exchange network to make checks cashable across the country.
'The network, established on June 25, helps improve the efficiency and safety of the country's payment and clearing regime,' the People's Bank of China said in a statement.
With the new network, enterprises and individuals can be paid in any region of the country with a check drawn on any bank. The remittance could be in place within two to three hours, at the most three days, if check holders use it in other cities.
To reduce potential risks, the ceiling for each check used in other cities is 500,000 yuan.
As a convenient payment tool, checks are widely used by enterprises and institutions, but only used within the same city because of the technology bottleneck.
'The move (to make checks universally cashable) aims to boost the use of non-cash payments to satisfy the growing demand of enterprises and people,' said the central bank.
The system was first used in six cities and provinces on a pilot basis in December.
After the step on checks, the central bank will crack down on fake accounts and improve the settlement environment for checks.
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