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8 Remittance

8 Remittance

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Published by Saif Azman

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Published by: Saif Azman on May 01, 2012
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01/21/2014

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Prime Bank Limited
a bank with a difference
6.1 Remittance Department
Remittance refers to the send or receipt of money from one place to another place. Foreignremittance refers that the exchange of money between two countries or among severalcountries. This is mainly occurred through banking institution. Prime Bank Limited is not beyond this. It performs the remittance function with different countries. It maintains theforeign remittance in the following form:1. Inward Remittance2. Outward Remittance
6.2 Inward Remittance
Inward Remittance refers to the extent where by bank makes payment to the client againstforeign demand draft. They will make payment to the client by verifying the, test keynumber, and signature of the authorized officer. The bank makes payment immediately if the amount is less than TK-100,000.00. If the amount exceeds TK-100,000.00, it must waitto get the credit advice from the issuing bank.
 Modes of Foreign Inward Remittance
T.T (Telegraphic Transfer)
M.T (Mail Transfer)
D.D (Demand Draft)
T.C (Travelers Cheque)
P.O (Pay Order)
Foreign Exchange Mechanism: a comprehensive Study of Prime bank Ltd. (considering Jubilee Road Branch,Chittagong as standard)
71
 
Prime Bank Limited
a bank with a difference
Besides this foreign Inward Remittance also includes remittance on account of export, purpose of bills, purpose of T.C Foreign currency notes and coins, cheque issued onforeign banks in favor of beneficiaries in Bangladesh etc.
T.T 
Cable or telex instructions of payment are called as Telegraphic Transfer, where foreign banks issue a T.T in favor of some one in Bangladesh. It credits the amount, received fromthe remitter to the NOSTRO A/C of its correspondent bank. On receipt of the T.T inforeign currency or in equivalent Bangladesh Taka to the beneficiary.
 M.T 
M.T is an instrument issued by a remitting bank to the paying bank advising in writing tomake payment of certain amount to specific beneficiary.
 D.D
A demand draft is a negotiable instrument issued by a bank drawn on other bank with theinstruction to pay a certain amount to beneficiary on demand.
T.C 
It is an instrument issued by the Banks/Company’s payable to the purchaser on presentation.
 P.O
A payable order is a written under issued by a branch of bank, to pay a certain sum of money to specific person or a bank. It may be said as to be a banker’s cheque as it issued by a bank and payable by itself.
6.2.1 Purpose of Inward Remittance
Foreign Exchange Mechanism: a comprehensive Study of Prime bank Ltd. (considering Jubilee Road Branch,Chittagong as standard)
72
 
Prime Bank Limited
a bank with a difference
 
01020304050
   i  n  w  a  r   d  r  e  m   i   t   t  a  n  c  e
March May July Septembe
month
Inward remittance flow over the month'07
* Source: Monthly Position Report of Prime Bank Ltd, Jubilee Road Branch, Chittagong, prepared for sending Head office.
Family maintenance.
Indenting commission.
Recruiting Agents commission.
Donation.
Gift.6.3
Inward remittance flow of Jubilee Road Branch
*
(March-September)
(Taka in lac)
Month March April May June July August SeptembeInwardremittance7 35 29 49 11 27 23
6.4
 
Outward Remittance
Foreign currency being made out abroad may be termed as foreign outward remittance.That means in foreign currency that goes out abroad is called foreign outward remittance.Prime Bank Limited charges TK-400per demand draft.
6.4.1 Collection of foreign currency instrument 
Foreign Exchange Mechanism: a comprehensive Study of Prime bank Ltd. (considering Jubilee Road Branch,Chittagong as standard)
73

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