The banknotes that have been delivered by a credit institution (either directly or by an intermediary) to the central bank, where the latter has not yet counted them. In many countries there is a system (the System whereby the total value of banknotes delivered by a financial institution to the central bank will be credited on the same day the delivery is made, even if the veracity and accuracy of the information provided is not verified by the detailed counting and validation of the delivered banknotes. The system involves the settlement of any differences on the account of the financial institution at the central bank. See also Settlement of differences. system) by which the central bank and credit institutions sign an agreement that allows the amount of these A banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. deliveries to be paid to the account of the financial institution, despite not having an absolute affirmation of its amount or legitimacy. Subsequently, when the central bank counts and analyses the banknotes delivered, it confirms or rectifies (through an extra credit or debit, for the difference found) the initial transaction credited in the bank account of the financial institution.