Presenting Bank

Definition (1):

Presenting Bank is the collecting bank making the presentation (of the collection) to the drawee.

Definition (2):

According to, “A bank that gives a demand for payment to another bank.” For instance, the presenting bank can submit a check to another bank for receiving payment. This bank does this if another bank draws the financial instrument. 

Definition (3):

A presenting bank is a bank that requests a collection bill’s payment. It can be a collecting bank, its corresponding branch, or a local correspondent whichever is better located for contacting the importer.

In other words, it is a financial institution presenting a negotiable instrument for a payment to another financial institution (or the advising financial institution).

The clearing process starts with a cheque’s deposit in a bank. The bank delivers this cheque and other cheques to the branch\ bank where they are drawn. When the banker is sure about this instrument’s genuineness and funds are available, this cheque is passed for payment.

The unpaid cheques are returned to the presenting bank through the return clearing. The fund’s realization takes place after return clearing is completed and by an unpaid cheque’s absence.

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