The Promissory Note is an instrument issued by a bank that promises to unconditionally pay a specific amount to the beneficiary or bearer on sight.
Benefits
Payable on sight; high level assurance of payment.
Promissory notes may be used for fund transfer. Promissory notes bearing the word "cash" may be used for cash withdrawal. Promissory notes may be transferred by endorsement, unless they bear the word "cash".
Procedures
1. The customer fills out the Settlement Application Form and affixes specimen seal at the designated area; if payment requires password entry, payment password should be prepared and provided at the designated area.
2. The bank reviews the completed Settlement Application Form, and issues the promissory note based on the application.
3. The customer delivers the promissory note to the beneficiary; the beneficiary then presents the promissory note to the paying bank for payment.
FAQs
1. How long is the validity of a promissory note?
The presentment period of a promissory note is up to two months following the date of issue.
2．Is there any limitation on a cash promissory note?
The applicant and the beneficiary must be individuals. If one of them is an organization, the application for a cash promissory note will be rejected.
3. What is the minimum amount for a promissory note to be issued?
No minimum amount is required for a promissory note of unfixed amount to be issued under the Measures for Payment and Settlement.
4. What fees are charged on promissory notes issued?
An RMB0.20 charge will occur on each promissory note issued; an RMB0.6 fee will be charged on each transaction, and an RMB1.00 fee will be charged if a bill sorting machine is used.
5. Where can I use promissory notes?
Promissory notes can be used if organizations or individuals make payments to anyone within the same clearance area.
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