A person who at least once held an agreement with financial obligations in his hands would certainly catch the phrase “banking days”. As a rule, it is in them that the terms of payments, deliveries and other actions are measured. Therefore, in order to avoid misunderstandings in the process of execution of the contract, each party should clearly and clearly know what this concept is.
Interpretation and use
By definition, a banking day is a period of time that state-owned banks operate (from the moment the electronic payment system is opened until it is closed). That is, it turns out that throughout this time any settlements between individuals and legal entities, as well as financial institutions, including interbank ones, are possible.
This term is used in all credit and deposit agreements, it is also present in other financial documents concluded during sales, purchases, deliveries, etc. As a rule, the phrase “banking days” means a period of time, with the exception of weekends and public holidays . Unfortunately, this definition is not always true. Indeed, firstly, the days off of banks (even state ones) do not always coincide with national ones. Secondly, when it comes to settlement transactions, the concept of “banking day” is similar to the term “operating time” and is measured in hours, not days. In this regard, the meaning of this phrase changes depending on the situation.
Banking days in cash management services
Organizations, enterprises and individuals who open current accounts, making payments in favor of other counterparties, must also adhere to certain time frames. So, for example, on weekends (not banking) days, only those operations that are carried out through internal BOT are possible.
It turns out that if a private person transfers funds on such a day, for example, from his card to someone else's, but opened in the same financial institution, then they will reach the recipient in a timely manner. When funds must be transferred from one bank to another, the interbank system is used. Therefore, funds sent on a day off will be credited to the account only with the beginning of the first worker. The settlement and cash services agreements concluded between the client and the bank, as a rule, specify the time during which all types of payment transactions are carried out. Moreover, 1 banking day is given only for internal payments. The rest are carried out over a period of 3 to 5.
Use of the term in supply contracts
When entering into transactions for the sale of goods or the provision of services, payment terms are also usually negotiated using the concept of “banking day”. This is done to avoid misunderstandings during the weekend, as well as holidays, especially protracted. For example, in some states there are New Year or Christmas holidays during which payment systems do not open. These days are not considered banking days and fall out of the general calculation of the terms of
fulfillment of obligations.Thus, it turns out that, depending on the context, the term may have different meanings. Banking day is, on the one hand, the day the payment system operates in the state. On the other hand, there is a period of time from the moment of its opening to closing.