With advanced fund settlement and clearing system, professional business management mode and rich business experience, ICBC has gained high recognition from the market in draft agent business. At present, it has established correspondent banking relationship with many domestic joint-stock commercial banks and local banks and provided a channel for free transfer of draft funds for peers.

1. Draft Issuance Agent
Business description. Draft issuance agent refers to the business where foreign banks and local financial institutions issue drafts of the Bank with the Bank’s draft certificate, special seal for draft and encryption devices on behalf of the Bank, and institutions of the Bank conducting correspondent banking business will verify and honor the drafts issued by correspondent banks as those issued by the Bank.
Target customers. Banking institutions including foreign banks, urban commercial banks, urban credit cooperatives, and rural credit cooperatives.
Key functions. Other banking institutions issue drafts for the Bank, which will be honored by outlets of the Bank.
Conditions
(1) The two parties signed the Agreement on the Draft Issuance Agent Business;
(2) The correspondent bank issues drafts of the Bank upon customer’s request as per the payment settlement rules;
(3) The correspondent bank transfers the funds of drafts issued for the Bank and pays the service charge for settlement to the Bank according to the rate and means of payment specified in the agreement;
(4) The Bank verifies and honors the drafts issued by the correspondent bank in the same manner as those issued by the Bank.

2. Draft Honoring Agent
Business description. The draft honoring agent refers to the business where the Bank honors the drafts issued by other banking institutions on behalf of them. All institutions of the Bank conducting correspondent banking business may honor the drafts issued by signatory principal banks of the Bank.
Target customers. Banking institutions including joint-stock commercial banks, policy banks, foreign banks, urban commercial banks, urban credit cooperatives, and rural credit cooperatives.
Key functions. Honoring drafts issued by other financial institutions and conducting fund settlement.
Conditions. The two parties sign the agreement for draft honoring agent business and submit the agreement to PBOC for record. The agreement must be signed by the Head Office of the Bank and the Head Office of correspondent bank.  

3. Fund Settlement Agent of Regional Drafts
If on-demand drafts negotiable in a certain region issued by a bank are honored by a correspondent bank where the issuing bank has no subsidiaries, ICBC may perform fund settlement with the honoring bank on behalf of the issuing bank.

4. Draft Inquiry and Reply Agent
The principal bank may entrust ICBC to inquire information about cross-system drafts, which helps to increase the speed of inquiry related to cross-system drafts and improve the customer service level of cooperative banks.