The concept of "banking days": what is it?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A person who at least once held an agreement with financial obligations in his hands, certainly caught the eye of 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 executing the contract, each party must clearly and clearly know what this concept is.

Interpretation and usage

By definition, a banking day is a period of time for the operation of state-owned banks (from the moment an electronic payment system is opened until it is closed). That is, it turns out that during all 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 loan and deposit agreements, it is also present in other financial documents concluded in transactions of sale, delivery, etc. As a rule, the phrase "banking days" means a period of time forexcluding weekends and public holidays. Unfortunately, this definition is not always true. After all, 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 "operational 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 and settlement services

Organizations, businesses and individuals that open current accounts, making payments in favor of other counterparties, must also comply with certain time frames. So, for example, on weekends (non-banking) days, only those operations that are carried out through the internal EPS are possible.

It turns out that if an individual transfers funds on such a day, for example, from his card to someone else's, but opened in the same financial institution, they will reach the recipient in a timely manner. When funds need to be transferred from one bank account to another, the interbank system comes into play. Therefore, funds sent on a weekend will be credited to the account only with the beginning of the first working day. In agreements on settlement and cash services concluded between the client and the bank, as a rule, the time during which all types of payment transactions are carried out is stipulated. At the same time, 1 banking day is given only for internal settlements. The rest are carried out for 3 to 5.

Useterm in supply contracts

When concluding transactions for the sale of goods or the provision of services, the terms of payment, as a rule, are also negotiated using the concept of "banking day". This is done to avoid misunderstandings during weekends, as well as holidays, especially protracted ones. For example, in some states there are New Year or Christmas holidays, during which payment systems do not open. These days are not considered bank days and fall out of the general calculation of the terms for fulfilling obligations.

Thus, it turns out that depending on the context, the term can have different meanings. Banking day is, on the one hand, the day of operation of the payment system in the state. On the other hand, the period of time from the moment of its opening to its closing.