The so-called bill arbitrage, that is, because the discount rate of bills is upside down with the deposit rate in the current market, is called bill arbitrage when the deposit rate is higher than the discount rate of bills.
First, is it illegal to accept and discount privately?
It is illegal for private individuals to discount acceptance bills, which belongs to the crime of illegal business operation. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or solely be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times his illegal income or his property shall be confiscated.
It is illegal to discount acceptance bills.
Second, the acceptance bill cashing process
According to the relevant regulations, an acceptance bill is a bill issued by the seller in order to claim payment from the buyer in the transaction, and the payer marks the word "acceptance" on the face and signs it to show his recognition of the due payment. The cash flow is as follows:
(1) application. Applicants need to prepare legal and valid bills of exchange, copies of ID cards, discount business applications and other documents to apply to the bank for acceptance.
(2) examination and approval. Bank staff need to review the relevant materials after receiving them.
(3) endorsement transfer. After the approval of the bank, the applicant shall go through the formalities of endorsement and transfer on the commercial bill.
(4) the use of funds. After deducting the discount interest, the bank will transfer the corresponding funds to the applicant's deposit account, and the applicant can use the discounted money.
legal ground
People's Republic of China (PRC) Commercial Bank Law
Article 4 Commercial banks should operate independently, bear their own risks, be responsible for their own profits and losses, and exercise self-discipline based on the principles of safety, liquidity and efficiency.
Commercial banks conduct business according to law and are not subject to interference by any unit or individual.
Commercial banks independently bear civil liability with all their corporate property.
Article 5 Commercial banks should follow the principles of equality, voluntariness, fairness, honesty and credibility in their business dealings with customers.
Article 6 Commercial banks should protect the legitimate rights and interests of depositors, and no unit or individual may infringe upon them.
Article 7 Commercial banks should strictly examine the credit standing of borrowers when conducting credit business, so as to ensure the timely recovery of loans.
Commercial banks recover the due principal and interest of loans from borrowers according to law, which is protected by law.
Article 8 Commercial banks shall abide by the relevant provisions of laws and administrative regulations when conducting business, and shall not harm the interests of the state and society.
Article 9 Commercial banks shall follow the principle of fair competition in their business and shall not engage in unfair competition.
Article 10 A commercial bank shall be subject to the supervision and management of the banking supervision institution of the State Council according to law, but if the law stipulates that its related business shall be supervised and managed by other supervision and management departments or institutions, such provisions shall prevail.