What is Hong Kong Banks Clearing Codes?
The Three Digits Bank Codes allotted to the Banks / Financial Institutions by the Hong Kong Monetry Authoity for the identification of a payment service provider is called Hong Kong Bank Clearing Codes. Hong Kong Clearing Codes are the Bank Codes for identifying a Bank / Financial Institutions.
What is Hong Kong Banks Branch Codes?
Each Bank / Financial Institution Branch of Hong Kong is allotted three digits Branch Code by the Hong Kong Monetry Authoity for the identification of a payment service provider Branch is called Hong Kong Bank Branch Codes. Hong Kong Clearing Code & Branch Code is used for identifying a Bank / Financial Institutions Branch. The First three digits in your Bank Account Number depicts Branch Code of the Bank Account.
Purpose of Hong Kong Banks Clearing Codes & Branch Codes
Clearing Codes & Branch Codes are used in Hong Kong by Banks to transfer payments from one Bank Account to another Bank Account, within a Bank Branch or between a Bank's different branches or between different Banks. In Hong Kong each Branch of a Financial Institution / Bank is allotted a unique Bank & Branch Code. Means Clearing Code and Branch Code is unique.
How to find Hong Bank Accounts Clearing Codes?
Your Bank Account Clearing Code & Branch Code is printed on your Cheque Book. You can also find your Bank Account Clearing Code & Branch Code in your Banks Mobile APP or Web Application. Login to your Bank's Mobile APP or Web APP and you will see three digits no. Clearing Code & three digits for your Branch Code.
Hong Kong Real Time Grosss Settlement
In order to settle the payments in real time, Hong Kong Clearing System support following four RTGS System:
HKD Clearing System
HKD Real Time Gross Settlement ("RTGS") system, which is known as HKD Clearing House Automated Transfer System ("CHATS") was launched on 9 December 1996 by Hong Kong Interbank Clearing Limited ("HKICL").
All licensed banks in Hong Kong are obligated to maintain HKD settlement accounts with the Hong Kong Monetary Authority ("HKMA"). Since June 2000, restricted licence banks with a clear business need are also allowed to open settlement accounts with the HKMA. Under the RTGS system, every CHATS transaction has to be settled on an individual and gross basis. Unless with special instruction specified, payment instructions are settled immediately if there is sufficient balance in the settlement account. Banks without sufficient credit balances or securities for intraday repo to effect outgoing payment instructions will have their instructions queued in the system. The queuing mechanism allows the banks to manage their own queues of payment instructions through cancellation or re-sequencing. When a payment has been settled across the books of the HKMA, it will be regarded as final and irrevocable.
USD clearing system
In order to provide efficient settlement of USD transactions during Asian business hours, a USD clearing system was introduced on 21 August 2000. The Hong Kong Monetary Authority ("HKMA") appointed the Hongkong and Shanghai Banking Corporation Limited as the Settlement Institution ("SI") for the USD clearing system in Hong Kong. The USD SI is a commercial bank. Each direct participant has to open and maintain a settlement account with the USD SI and USD transactions are settled across the books of the USD SI. The USD RTGS adopts a two-tiered membership structure; Banks in Hong Kong can join the system as either direct participants or indirect participants; other institutions which have been permitted by the USD SI and the HKMA can also join the USD clearing system.
Direct participants may obtain interest-free intraday liquidity through intraday repo arrangement by pledging the Exchange Fund Bills and Notes or other eligible debt securities to the USD SI as collaterals.
Euro Real Time Gross Settlement
Euro clearing was introduced on 28 April 2003. The Hong Kong Monetary Authority ("HKMA") appointed Standard Chartered Bank (Hong Kong) Limited as the Settlement Institution ("SI") for the Euro clearing system in Hong Kong. All Euro on-line transactions are settled real time on a gross basis and are across the books of the Euro SI. The settled payments are final and irrevocable.
Renminbi Settlement System
Bank of China (Hong Kong) Limited ("BOCHK"), is the Clearing Bank for RMB. Each RMB clearing member has to maintain a settlement account with the Bank of China (Hong Kong) Limited ("BOCHK"). RMB Clearing System offer the cross-border joint clearing services to participants of the system i.e. the clearing of RMB cheques drawn on banks in Hong Kong and presented to banks in Guangdong Province including Shenzhen.
