Settlement Account

Settlement Account


(in Russian, raschetnyi schet), in the USSR, a bank account that shows the monetary operations resulting from economic activity of enterprises and organizations practicing khozraschet (economic accounting).

A settlement account is opened by the State Bank of the USSR (Gosbank) for enterprises and organizations that have been given their own circulating capital and show their operations on an independent balance sheet. Each such enterprise or organization can open only one settlement account, which is used for the safekeeping of money and for making appropriate payments. The holder of the account may dispose of the deposited capital in accordance with established rules. If there is not enough capital in the account to pay all claims, a sequence of payments is established under the supervision of the appropriate bank.

Cash is paid out of the settlement account on the condition that the demands for the expenditure of the wage funds are observed. In individual instances, a special settlement account can be opened for the enterprise or organization in addition to the basic settlement account and used for the redistribution of circulating capital and for major repairs. With the permission of the banking institution where the basic settlement account has been opened, it is also possible to open settlement subaccounts. In these subaccounts are deposited the monetary resources of enterprises that do not practice khozraschet, including branch offices, warehouses, and stores. The assets are transferred from the designated settlement subaccounts to the basic settlement account at stipulated dates.

The capital in a settlement account is formed chiefly from receipts resulting from the sale of product. It is a reserve used to pay supplier bills for materials and all types of energy. It is also a reserve for paying wages, paying off loans and indebtedness formed as a result of the offsetting of claims, and obtaining various services.

A settlement account can be closed upon the request of the holder if there is a change in the nature of the work of the enterprise or organization, if liquidation or reorganization has taken place, or if there have been no transactions in the account for a period of three months.


References in periodicals archive ?
Sberbank business cards are linked to the settlement account of a company.
The central bank said that non-bank PSPs would now be allowed to apply for a settlement account in the RTGS system, giving them direct access to the UK's sterling payment systems.
According to the BSP, a clearing and settlement account must be maintained with a designated local or foreign settlement bank in order to be eligible for the exclusion.
Fourth, MFBs will have to establish Funding Arrangements (FA)/Credit Lines (CL) with Direct Participants of PRISM, enabling Direct Participants to replenish MFBs Settlement Account as and when required within stipulated time.
MFBs will have to establish funding arrangements (FA) / credit lines (CL) with direct participants of PRISM, enabling direct participants to replenish MFBs Settlement Account as and when required within stipulated time.
The Reserve Bank announced last year that it would review the Exchange Settlement Account System (ESAS) and NZClear Securities Settlement System (NZClear) that it owns and operates.
Cachet Financial Services is a national company providing a variety of services for mid-market to large corporate clients and the payroll service industry, including ACH Processing, Wire Services, Trust Management, and Settlement Account Services.
The OBU is going to apply with the Bank of China (Hong Kong), the only RMB settlement bank in Hong Kong, to open a settlement account to offer RMB-based financial services to individuals, corporations, government units and/or financial institutions offshore (including China), meaning the OBU will accept Chinese individuals and enterprises to deposit various currencies in their accounts.
MANAMA: Standard Chartered has signed renminbi (RMB) cross-border trade settlement account agreements with five Middle East and North Africa-based banks.
Standard Chartered has signed Renminbi (RMB) cross border trade settlement account agreements with five Mena based banks.
While there is a risk members will move their settlement business to replace the lost revenue, DeGroot said credit unions are used to keeping their settlement account, overnight account and a line of credit tied to settlement together under one roof.
It is only on the instruction of the clients that JRG can transfer the funds to the Dubai Gold and Commodities Exchange settlement account, said Sajith Kumar, Director Aa and Chief Executive Officer of C JRG Aa International.