A bank is a place that involves a lot of cash, and many customers come every day to carry out various operations such as deposits, withdrawals, transfers, payments, etc. All of these businesses require cash, so how do banks manage it?Why do banks escort cash at regular intervals every morning and evening instead of leaving it in the bank?What are the pros and cons and risks of doing so?This article will explain these issues to you from the following aspects.
First of all, the bank escorts cash every day to ensure the safety of cash. We all know that banks are the most wanted places for criminals to rob, and if too much cash is stored in the bank, once there is theft, robbery, vandalism, etc., the property of the bank and customers will suffer serious losses. In addition, cash is also susceptible to natural factors, such as fire, flooding, insect damage, etc., which can make cash unusable or depreciate. Therefore, the bank must send all the cash it receives every day to the People's Bank of China or other designated vaults, which is a common rule in the banking industry, called "money does not stay overnight". Before the next day's business, the bank withdraws a certain amount of cash from the vault as needed.
Secondly, the bank escorts cash every day to improve the efficiency of funds. The main responsibility of the bank is to act as a financial intermediary, lending depositors' money to people or institutions in need, so as to realize the flow and allocation of funds. If there is too much cash in the bank, it is equivalent to a part of the idle funds, with neither interest income nor investment income. Moreover, cash also occupies the bank's capital space, reducing the turnover speed and yield of funds. Therefore, banks need to move cash from the treasury to more valuable projects as soon as possible, such as loans, investments, etc.
Thirdly, banks are still escorting cash every day to meet regulatory requirements. According to laws and regulations, commercial banks shall, in accordance with the regulations of the People's Bank of China, regularly pay or withdraw cash to the People's Bank of China, and report the situation of cash in hand in accordance with the regulations. This is done in order to effectively supervise and manage commercial banks, and is also an important means to maintain the order and stability of the circulation of the renminbi.
Since banks have to ship large amounts of cash back and forth every day, how do they ensure the safety and efficiency of transportation?Generally speaking, banks escorting large amounts of cash are subject to the following principles:
First, it is necessary to be escorted by two people and escorted by armed forces. When transporting cash and other valuables, the cashier should be responsible for sealing and inspecting them, and a special person and a special vehicle should be sent to escort them with arms. The delivery is carried out by two cashiers, two armed escorts and a full-time driver. The cashier shall be responsible for handling the transfer procedures and the accuracy and completeness of the physical payment. Armed escorts are responsible for the security of cash and goods, persons and vehicles. The driver is responsible for the safety of the cash truck. The cashier cannot use the gun, the escort cannot move the money, and the person cannot entrust others to carry it.
Second, it is necessary to keep secrets and change course. When transporting cash, you must not arbitrarily change the route, stop for no reason, do other things, or take others, and keep the time, place, route, product name, and quantity of the delivery confidential. The time and route of transporting banknotes should be changed in a timely manner to avoid being tracked or followed.
Third, it is necessary to strictly follow the handover procedures. The delivery of cash must be handled with the notice and declaration of the delivery of goods, and the cash must be counted in person after it is shipped and delivered. If there is any error or loss, it should be reported and dealt with in a timely manner.
Although there are strict regulations and measures for banks to escort a large amount of cash, they still face some risks and challenges, such as a large amount of cash escorted by banks is the first of criminals, and once they encounter robbery, hijacking, violent attacks and other incidents, it will bring huge losses and injuries to banks and escort personnel. Therefore, banks should strengthen communication and cooperation with the public security organs, improve vigilance and prevention capabilities, and respond to emergencies in a timely manner. For example, the bank escorting a large amount of cash may also be affected by natural disasters, such as floods, mudslides, fires, etc., resulting in the trapped or damaged cash trucks, and the cash being flooded or burned. Therefore, banks should reasonably arrange the time and route of banknote transportation according to meteorological forecasts and geological conditions, avoid entering dangerous areas, and make emergency plans. In addition, banks need to rely on some technical equipment and systems to escort large amounts of cash, such as GPS positioning, communication, data transmission, etc. If these devices or systems fail or are disturbed, it will affect the efficiency and safety of banknote transportation. Therefore, banks need to regularly inspect and maintain these equipment and systems, and have alternatives in place. Finally, the transport of large amounts of cash by banks will also attract social attention and doubts. Some may see this as a waste and extravagance, contrary to the idea of conserving resources and protecting the environment. Therefore, banks should strengthen communication and explanation with the society, explain that this is necessary to protect the order of cash circulation and the public's rights and interests in using cash, and actively promote non-cash payment methods. In conclusion, it is a complex and important task for banks to escort large amounts of cash back and forth every day, which is both reasonable and necessary, but also risky and challenging. Banks should strike a balance between complying with laws and regulations, meeting regulatory requirements, ensuring cash security, and improving the efficiency of capital utilization, and constantly improve their management systems and service levels, so as to contribute to creating a harmonious cash circulation environment.
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