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. Foreign remittance refers that the exchange of money between two countries or among several countries. This is mainly occurred through banking institution. Prime Bank Limited is not beyond this. It performs the remittance function with different countries. It maintains the foreign remittance in the following form: 1. Inward Remittance 2. Outward Remittance 6.2 Inward Remittance Inward Remittance refers to the extent where by bank makes payment to the client against foreign demand draft. They will make payment to the client by verifying the, test key number, 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 wait to 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 Jubil ee Road Branch, Chittagong as standard)

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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 on foreign 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 from the remitter to the NOSTRO A/C of its correspondent bank. On receipt of the T.T in foreign 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 to make 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 the instruction to pay a certain amount to beneficiary on demand. T.C

It is an instrument issued by the Banks/Companys 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 bankers 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 Jubil ee Road Branch, Chittagong as standard)

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6.3

Family maintenance. Indenting commission. Recruiting Agents commission. Donation. Gift. Inward remittance flow of Jubilee Road Branch *(March-September) (Taka in lac)

Month Inward remittance

March 7

April 35

May 29

June 49

July 11

August September 27 23

Inward remittance flow over the month'07

50 inward remittance 40 30 20 10 0 March May month July September

* Source: Monthly Position Report of Prime Bank Ltd, Jubilee Road Branch, Chittagong, prepared for sending Head office.

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 Jubil ee Road Branch, Chittagong as standard)

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To collect proceed of foreign instrument following procedures to be maintained. Receive instrument with deposit slip. Affix crossing stamp of the Bank. Entry in the register putting IBCA number. Affix endorsement pay to the order of any Bank or trust company, prior endorsement guaranteed. Instrument to be sent to adjacent correspondents.

6.4.2 Remittance are allocated Household remittance. Advance payment. Education purpose. Exporting traveling.

Foreign Exchange Mechanism: a comprehensive Study of Prime bank Ltd. (considering Jubil ee Road Branch, Chittagong as standard)

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