1.

1 Introduction The topic of this report is Foreign Remittance Management and Impact of Remittance to the Economic Development: A Study on Southeast of a developing country li!e an! "td # andar a$ar % Sylhet&'( Remittance has )een playing a very important role to the sustaina)le economic development angladesh( Emigrants send a portion of their earning as A is AIS( I have completed my remittance for their family mem)ers and relatives as remittance( I am a student of "eading *niversity% Sylhet( My ma+or in internship program in Southeast an! "imited% andor a$ar% Sylhet( In this report I ,ant to sho, the foreign remittance services of Southeast an! "imited% andor a$ar% Sylhet( I also ,ant to focus the contri)ution of foreign remittance in angladesh( 1.2 Background of the Study This report is an internship report prepared as a re-uirement for the completion of A program #Ma+or in Accounting Information Systems& of "eading *niversity( The primary goal of internship is to provide the +o) e.posure to the student and an opportunity to implement theoretical !no,ledge in real life situation( The program covers a period of / month( This report focuses on the foreign remittance service of Southeast an! "td( Through this internship program% I got some practical 0no,ledge( I ,as sent to the Southeast an! "td(% andar a$ar ranch% Sylhet to ta!e the practical e.perience of the activities of )an!ing from 12th 3ovem)er 145/ to 16th Fe)ruary 1457( I am supervised )y 8ahida A!ther% senior lecturer% "eading *niversity% Sylhet( 1.3 Objectives of the Study The main o)+ective of the study is to o)tain a clear idea and reveal the true picture a)out the foreign remittance service of SE " and to !no, type of remittance% systems of sending remittance% uses of remittance% impact on economy% negative impact etc( The other o)+ectives are as follo,ers: To fulfill the re-uirement of My To analy$e the data of A 9rogram(

andar a$ar ranch a)out remittance(

To !no, the accounting system used in foreign remittance service

1.4 Scope of the Study My Internship report )asically )ased on the Foreign remittance( 8hile ,or!ing closely ,ith the Southeast an! "imited # andar a$ar ranch& for three months I found the practical environment to see the system of foreign remittance service of SE "( This report covers the organi$ational structure% history% function( The customer satisfaction a)out the service:s and contri)ution of foreign remittance in angladesh( 1.5 ethodo!ogy of "ata #o!!ection

I have collected various types of 9rimary and Secondary data( Data has )een collected through different sources )y communicating ,ith the responsi)le officers and from customers( The Southeast an! "td(% andar a$ar ranch% Sylhet is the Study Area $he %ri&ary Sources of "ata Direct o)servation( 9ractical an!ing ,or!ing( Face to Face conversation ,ith the respective officer of the SE "( $he Secondary Sources of "ata Annual Reports of the SE " #1451& Internet% official ,e)site of the )an!( Documents of Southeast an! "td(% andar a$ar ranch% Sylhet 1.' "ata #o!!ection and %resentation $echni(ues After collecting data from primary% secondary sources % I presented the data )y percentage% chart % graph ( y analy$ing the data I have sho,n some findings% provided recommendations and conclude the report( 1.) *i&itation of the Study There are some limitations in an every study% I also faced some limitations or o)stacles in the ,ay of completed my internship report( Some limitations of my study are: The study area ,as limited( "ac! of opportunity to visit more than one )ranch( Time constraint(

 Although ;fficer:s have tried their )est to help me% their nature of +o) is such that gives them little time to discusses 2.1 +istory of Southeast Bank *i&ited Southeast an! "imited is a scheduled an! under private sector esta)lished under the am)it of )an! <ompany Act% 5==5 and incorporated as a 9u)lic "imited <ompany under <ompanies Act% 5==7 on March 51( The an! started commercial )an!ing operations effective from May 16% 5==6 ( During this short span of time the an! had )een successful to position itself as a progressive and dynamic financial institution in the country( The an! had )een ,idely acclaimed )y the )usiness community% from small entrepreneur to large traders including the top rated corporate )orro,ers for for,ard>loo!ing )usiness outloo! and innovative financing solutions( Thus ,ithin this very short period of time% it has )een a)le to create an image for itself and has earned significant reputation in the country:s )an!ing sector( 2.2 S!ogan A A30 8IT? @ISI;3' 2.3 ,ision To stand out as a pioneer )an!ing institution in angladesh and contri)ute significantly to the national economy( 2.4 ission ?igh -uality financial services ,ith the help of latest technology Fast and accurate <ustomer service alanced gro,th strategy The missions of Southeast an! "imited are as follo,s:

?igh standard )usiness ethics Steady return on shareholder:s e-uity Innovative )an!ing at a competitive price Deep commitment to the society and the gro,th of national economy 2.5 Objectives Ma!e sound investments( Meet capital ade-uacy re-uirement at all the time( Ensure a satisfied ,or! force(
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 Ensure 544A recovery of all advances( Focus on fee>)ased income( Adopt an appropriate management technology( 2.' S-B*.s #ore ,a!ues

Integrity Respect Fairness ?armony Team spirit <ourtesy <ommitment Service E.cellence Insight and Spirit Enthusiasm for 8or! usiness Ethics Transparent and -uic! decision ma!ingB Efficient team of performers Satisfied customers Internal control S!illed ris! management Diversification

2.) S-B*.S #ore Strengths

2./ S-B*.s #!ient #o&&it&ents SE ":s commitments to the clients are the follo,ing: 9rovide service ,ith high degree of professionalism and use of modern technology( <reate life>long relationship )ased on mutual trust and respect( Response to customer needs ,ith -uic!ness and accuracy( Sharing their values and )eliefs( Cro, as our customer:s gro,( 9rovide products and services at <ompetitive pricing( Ensure Safety and security of customer:s savings(
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2.10 +ierarchy of S-B*

2.11 S-B* at a 1!ance #orporate Infor&ation.s at a 1!ance2 #Information as per Annual Report 1451& 3ame of the <ompany <hairman @ice <hairman Managing Director <ompany Secretary "egal Status Date of Incorporation Registered ;ffice "ine of usiness Authori$ed <apital 9aid *p <apital 3um)er of ranches Hear of Initial 9u)lic ;ffer Stoc! E.change "isting 9hone Fa. S8IFT E>mail 8e)site : Southeast an! "imited : Alamgir 0a)ir% F<A : Ragi) Ali : Shahid ?ossain : Muhammad Shah+ahan : 9u)lic "imited <ompany : March 51% 5==6 : Eunoos Trade <entre% 61>6/% Dil!usha <DA #"evel 1% / E 52&% Dha!a>5444 : an!ing : T!(54444(44 million : T! FG/1(F2 million : =7 : 5=== : April 54% 1444 #DSE& E April 17% 1444 #<SE& :=6G5556% G524F22% G5G/G=/% =666722 E =6644F5 : =6644F2% =6644=/% =62/541 : SE D DD?III : infoJsoutheast)an!(com()d : http:DD,,,(southeast)an!(com()dDo,a

3.1 3e&ittance Remittance is transferred fund from one place or person to another place or person( provide remittance service to people ,hether they have account in that )an! or not( ;ne ,ho send remittance is called remitter and ,ho receive the payment is remittee( A remittance is a transfer of money )y a foreign ,or!er to an individual in his or her home country( Remittance is the 1nd largest source of foreign currency of our country( an!s

3.2 $he $op 3ecipients of 3e&ittance

The top recipients of officially recorded remittances for 2013 are India (with an estimated $71 billion ! "hina ($60 billion ! the #hilippines ($26 billion ! $e%ico ($22 billion ! &i'eria ($21 billion ! and ('ypt ($20 billion ) *ther lar'e recipients incl+de #a,istan! -an'ladesh! .ietnam! and /,raine) y CD9 percentage% the top recipients of remittances% in 1451% ,ere Ta+i!istan #7F percent&% 0yrgy$ Repu)lic #/5 percent&% "esotho and 3epal #16 percent each&% and Moldova #17 percent&( The ban, listed -an'ladesh amon' the fo+r co+ntries whose remittances are lar'er than the national forei'n e%chan'e reser0e) 1emittances to -an'ladesh were moderately hi'her in the first se0en months of 2013 than pre0io+s year! and 'rowth is e%pected to accelerate d+rin' the rest of the year)

Statistics of 8age earnerKs Remittance in our country are as follo,:

Monthly data of 8age earnerKs remittance 4ear5 onth 145/>1457 Lanuary Decem)er 3ovem)er ;cto)er Septem)er August Luly 1451>145/ Lune May April March Fe)ruary Lanuary Decem)er 3ovem)er ;cto)er Septem)er August Luly 1455>1451 Lune 3e&ittances In &i!!ion 6S do!!ar In &i!!ion $aka 5164(62 5154(15 5425(76 51/4(2F 5416(2= 5446(GG 51/F(=2 546F(17 54FG(5= 55=7(74 511=(/2 552/(5F 5/12(== 51FG(/5 5541(56 576/(2= 55GF(F/ 55GF(26 5145(56 54G4(F2 >> =74=6(44 F161F(G4 =62F2(54 G=G7G(=4 GF141(/4 =2//G(F2 F11F/(71 F721=(6F =/5==(52 =2246(5= =5=47(17 54666=(=4 54/22G(54 F=GG4(54 55F5==(64 =2/76(F4 =24GF(F4 =F15F(44 FG2G5(/4

3.3 $ype of 3e&ittance Mainly t,o types of remittance are there( These are: 3.3.1 In7ard 3e&ittance The remittance that enter into our country from other country is called In,ard Remittance( In,ard Remittance may )e as e.port proceeds% ,age earners% investment% tourisms etc(

3.3.2 Out7ard 3e&ittance The remittance that goes out from our country to other country is called ;ut,ard Remittance( ;ut,ard Remittance may )e as import payment% treatment% education% tour etc( Remittance can also )e classified as follo,ed: Family Remittances: It refers to remittances that are sent )y individual immigrants ,or!ing in the foreign locations to their family% relatives or friends in their home country( These remittances are sent every month and they assist the families of the migrants to survive( These remittances also help the poor families to fight against the poverty( The family remittances are regarded as the ma+or form of remittances across the ,orld ,here millions of ,or!ers are ,or!ing hard in distant land a,ay from their home for earning their livelihood( <ommunity Remittances: It refers to the remittance that is sent )y individual immigrants generally and also includes the remittance sent )y various hometo,n associations to organisations and communities in their home country( This money has )een used for the developmental activities of communities such as in )uilding infrastructure% church% par!s% and roads( It also offers health care to the poor( The community remittances are also used for offering health )enefits% educationB and employment to )ig communities ,ho need these facilities in the home countries( Migrant ,or!er Remittances M These remittances refers to the cash transfers done )y migrant ,or!ers for sending the money to the families% friends and relatives )ac! home( The migrant ,or!er remittances ma!e up a large chun! of money inflo,s into home country )y the people ,ho have migrated to foreign locations in the search of money% +o) or education( Social Remittances M These remittances )asically comprise of various ideas% practices% and social capital that ma!e up the )ac!)one of many remittances that flo,s from ,or!ers of one country to another( Thus social remittances assist the traditions and culture of one race or community% to sociali$e ,ith the cultures and traditions of another community( Social Remittances help in the )onding of people and do not have money associated ,ith them(

3.4 3e&ittance Sending Syste&s There are t,o systems of sending remittance( They are descri)ed in )elo,: 8or&a! syste& Demand draft% traveler:s chec!% telegraphic transfer% postal order% direct transfer% Automatic Teller Machine #ATM& etc are the formal ,ay to send remittance(
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Infor&a! syste& ?undi refers to the illegal money e.change not supported )y the international or national legal structure( ?undi or money carrier system is informal procedure of remittance sending in most of the cases( They do not charge anything for transaction( It is the fastest method of transaction( In urgent situations this is the -uic!est method for sending money(( The hundi operators provide door to door services( It ,as interesting to note that there are other social reasons for sending remittance through hundi( Fe, mentioned they send money to ,ives% fathers or )rothers separately and preferred to !eep the amounts sent secret% as it creates tension among the family

3.5 #haracteristics of 8oreign 3e&ittance This service has some specific characteristics for ,hich itNs )ecome more popular( "i!e: Ouic!er process to transfer( It is relia)le and trust,orthy( Free of charge Easy procedure It can )e used )y all customers having account or not Secrecy can )e maintained Instant cash payment

3.' 9ccounting Syste&s Step1: Step2: $.$ %ayab!e ; "ebit +ead Office ;"ebit $.$ %ayab!e ;#redit Instant cash pay&ent;#redit Other 9ccount ;#redit

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%ay Order ;#redit They first de)it ?ead ;ffice and credit T(T 9aya)le( Then they pay the money those are entered into T(T 9aya)le in cash )y de)iting T(T 9aya)le and crediting Instant cash payment or crediting ;ther Account or credit 9ay ;rder Account% 3.) Steps of 3eceiving oney
Sender

Money Transfer <ompany

?ead office

-ranch 1ecei0er

3./ "ra7ing 9rrange&ent

4rawin' arran'ement is made to facilitate acco+ntin' relationship between a ban, and correspondin' or e%chan'e ho+se! these may be in the followin' form5 1 &*6T1* 78"5 7 forei'n c+rrency acco+nt that a local ban, maintains with another ban, abroad is called &*6T1* 78") 2 .*6T1* 78"5 7 forei'n ban, maintains an acco+nt with local ban, is called .*6T1* 78") 3 9*1* 78"5 7n acco+nt which a third party maintains with a forei'n ban, is called 9*1* 78")

3.< "uties %erfor&ed in 3eceiving #ash 9rovides 9I3 3o that is sent )y the sender( ;fficer match The 9I3 3o if match then re-uest to give national ID card% driving license% passport or any other photographic identification( ID is chec!ed( <ustomers have to fill a form% provide the ID copy

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 After su)mitting the form %customer receive payment instrument Then goes to the cash counter

3.10 %rocess
The process of the service may )e divided into three parts these parts are discussed )elo, : 9art 5: Remitter must go to the specific agent for e.ample Trans>fast Remitter must provide details of the )eneficiary to the agent and pay money ,hich ,ill )e remitted Remitter then receives a 9I3 3um)er given )y specific agent and details a)out )an!( Remitter then provides 9in num)er to the )eneficiary details a)out )an!( The agent then deposits the total amounts of remittance to 3;STR; AD< of SE " Then provide details to )e made )y Email 9art 1: After receiving email % the head office of SE " match them ,ith amount deposited in the 3;STR; AD< The head office of SE " then provide details information )ranch ,ise for payment 9art /: Email is received )y )ranch Inserts 9ay>order 3o( E <ontrolling 3o( Issues 9ay>order Fillet the transaction details "og in )oo! of payment made At the end of )an!ing hours provides feed)ac! (

3.11 9gree&ent 7ith bkash

6(-9 ha0e entered into remittance distrib+tion a'reement with b,ash limited thro+'h which one million re'istered c+stomer wo+ld 'et instant remittance ser0ice from almost e0ery corner of the co+ntry) This ser0ice wo+ld help to transfer money faster to the beneficiary) If the money is transferred! then an 6$6 wo+ld be 'enerated to all concerned a+tomatically

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informin' that the money is safely deli0ered e0en beyond the ban,in' ho+r)This ser0ice wo+ld ma,e money transfer accessible to all) This ser0ice wo+ld allow eli'ible beneficiary to access re'ardless of whther they ha0e an acco+nt)

3.12 O7n -=change +ouse of S-B*.

6o+theast -an, 9imited ha0e completed all re'+latory formalities to open ban,s own e%chan'e ho+se in 6ydney! 7+stralia! :ohannesb+r'! 6o+th 7frica) 6o+theast -an, 9imited f+nctions s+ccessf+lly with its own e%chan'e ho+se in /;) They also e%plore the /67! $alaysia!$iddle<(ast mar,ets to set +p its own e%chan'e ho+se)

3.13 #o&pany fro& $hose the

oney is 3e&itted to S-B*.

=(6T(1& /&I*&! 1ia! $oney>ram! ?press $oney! Trans<@ast! 79 7&671I (?"A7&>(! 7ftab"+rrency! $ali, (%chan'e are those company from which the mony is collected by 6o+theast -an, 9imited)

3.14 Southeast Bank *i&ited > Bandar Ba?ar@

6o+theast -an, 9imited ( -andar -aBar was established on 4th 4ecember 2003) It is sit+ated at ;arim+lla $ar,et -andar -aBar) It stared its operation with a deposit of T; 10 crores) It is a Islamic -an,in' -ranch) It maintain its operations on the basis of 6hariah 9aws) The lar'e space !neat and clean floor are the most attracti0e feat+re of this branch)

3.10 8eatures of 3e&ittance Services of Southeast Bank *i&ited Southeast an! "imited is continuously striving to )uild its remittance )usiness )y rendering -uality services through a net,or! of reputed )an!s and e.change houses around the glo)e along ,ith an e.tensive net,or! in the country to deliver money to the )eneficiaries in the safest form and -uic!est possi)le time( 3o service charge from )eneficiaries in angladeshB Instant <ash 8ithdra,al facility from any )ranches of Southeast an!B <onfidentiality of transactionsB Instant credit to )eneficiaries accounts ,ith Southeast an!B Same day cash ,ithdra,al facility from the )ranches of ;ne an!% Lamuna an!% Al>Arafah Islami an!% RA< an!% Islami an!% Mercantile an! and First Security Islami an!B Same day cash payment facility from 244 outlets of reputed 3C;s #RDRS% Society for Social Services > SSS and Lagorani <ha!ra Foundation > L<F&B an!% Mutual Trust an! Asia% Shah+alal

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 Direct communication ,ith )oth Sender and Receiver for solving -ueries relating to cash paymentDaccount deposit #if any&B
Dis)ursement of foreign remittance through ATM )ooths using My Remit <ardA

9rovide Anti>Money "aundering #AM"& and <om)ating Terrorist Financing #<TF& advice( 3.11 8oreign 3e&ittance of Southeast Bank *i&ited In )elo, total remittance amount are sho,n: 144G 144F 55474(5G 56115(FG #Ta!a in million& to 1455( 144= 1/GG=(14 1454 1F4F1(16 1455 7=677(54 1451 75766(74

In 1451 the remittance flo, ,as lo,er than in 1455( ut the flo, ,as increasing from 144G

This can )e sho,n )y the follo,ing graph:

3.12 In7ard 3e&ittance 8!o7 of Bandar Ba?ar Branch The In,ard Remittance flo, of andar a$ar ranch from August>5/ to Lanuary>57 is: onth
Amount #T!&

9ugB13
524/71/5(= 1

SepB13
16=41652(=F

OctB13
1=4562=6 (FG

CovB13
56GF6=21(/6

"ecB13
5GG2451G(F2

DanB14
5=7=6564(/2

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The In,ard Remittance flo, of sho,n )y the a)ove graph(

andar

a$ar

ranch from August>5/ to Lanuary>57 is

3.13 6se of foreign re&ittance: 6se in househo!ds: The portion of remittance% the families use in consumption in different purposes such as food and clothing% purchase of land% marriage and ceremonies% trading% education% health care etc( Savings58i=ed deposit: The portion of remittance received )y our country people save in different )an!s( Invest&ent in Business: They also use remittance money in e.isting )usiness or to open a ne, )usiness( The )usiness may )e small or )ig( It depends on the remitted money them received 3epay&ent of !oan: Most of the cases remittance money is used for payment of lone that ta!es from different )an!s or people( 1ift5donation to re!atives: This money is used for present gift to relatives or for donation for a ,hile( 8urniture: Most of the lo, or middle classes people depend on this money to o)tain home furniture(

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+o&e construction 5 repair: In ma+or cases most of remittance money is used for construction of ne, home and repairing of hous 3.14 Benefits to the Bank y rendering remittance service it increases deposits% y rendering remittance service )an! increases it:s account holder% an! earns profit )y rendering remittance service an!s helps the ,age earner and also to the )eneficiaries thus create good relationship ,ith customer( an! earn in the form of fees% commission% e.change gain(

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4.1 I&pact of 3e&ittance in -cono&ic "eve!op&ent Satisfactory level of reserves of foreign currencies has positive impact on the macro economic condition of a country( 8e have limited sources of earning of foreign currencies( ;ur import is high )ut e.port is lo,( Every year ,e have to ta!e loan( ut no, remittances help a great to have the reserves at satisfactory level( In recent years% it is recorded that our reserve is at the ma.imum level ,here remittance is the largest contri)uting sector( ?ence there is no dou)t that remittances and reserves have a positive correlation( Moreover% reserves and remittance are rising over time( The contri)utions of foreign remittance are as follo,:
Increase C39:

As foreign remittance increases it also increases the national income of people( As the national income increase the consumption of goods )y the people also increases in that country( So% production of goods )y the different organi$ations increases( It increases our country:s C39( So it has more contri)ution on C39(
Impact on consumption:

As the remittance increase the consumption of goods )y the country people also increase(
Increase saving

9eople save some some part of remittance so foreign remittance is increasing the level of our savings( The remittance received )y our country people is saving in different )an!s( As a result account holder of )an! increases(
Increase <apital:

As the saving are increasing in )an!s% capital ,ill )e availa)le for investment( This huge amount of money is investing is different pro+ect )y the )an!(
Impact of remittance on investment:

9eople can invest their collected money )y esta)lishing their o,n small )usiness(
Increase employment:

The people of our country are getting +o)s in different pro+ect% firm or industries as the investment increase(
Impact of remittance on import:

Sometimes people ,ill )ecome more eager to )uy foreign product( So it increases the import(

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3e&ittance as %ercentage of 1"% The share of remittance to gross domestic product #CD9& has )een increasing over the years )ut the incremental rate of gro,th is follo,ing a do,n,ard trend after FH 1447>46( In FH 1455>51% the CD9 ,as DT =57GF4 million and remittance as percentage of CD9 ,as 55(57 percent ,hich ,as 4(G1 percent higher than that of FH 1454>55( Since FH 1442>4G% the incremental rate of gro,th of remittance as percentage of CD9 has )een decreasing( The incremental rate of gro,th of remittance as percentage of CD9 ,as >4(6/ percent and 4(54 percent respectively in FH 1454>55 and FH 144=>54% from 5(/F percent in 1446>42(

8igure 1: 3e&ittance as a percentage share of 1"% #o&parison bet7een the rate of gro7th in re&ittanceB inf!ation and 1"% In FH 1455>51% the rate of gro,th in remittance ,as 11(G7 percent ,hile the rate of gro,th in CD9 remained at 2(/1 percent and the rate of inflation increased to 54(21 percent( In FH 144/>47% the rate of gro,th in remittance and CD9 ,ere respectively 51(4F percent and 2(1G percent ,hereas% the rate of gro,th in inflation ,as only 6(F/ percent(

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Figure 1: <omparison )et,een gro,th rate of remittance% inflation and CD9 3e&ittance as a %ercentage of -=port -arning In FH 1455>51% e.port and remittance as a percentage of e.port earnings ,ere respectively *SD 51F7/(7/ million and 61(F7 percent ,hich ,as only 1(47 percent more than that of FH 1454>55( ;n the other hand% merchandise e.port% remittance and service invisi)le receipt as a percentage of total e.ports of goods and services ,ere 25(G1% /5(/2 and 2(=1 percent in FH 1454>55( In FH 1454>55% remittance and service invisi)le receipt as a percentage of total e.ports of goods and services ,ere 6(2G and 5(7/ percent respectively less than those of FH 144=>54( A up,ard trend of remittance as percentage of e.port earning ,as o)served after FH 1444>45( In FH 1444>45% remittance as percentage of e.port earning ,as only 14(27 percent ,hereas it stood at /G(4/ percent in FH 144=>54(

Figure /: Remittance as a percentage of e.port earning 4.2 3oadb!ocks in #urrent 3e&ittance %rocess The ma+or road)loc!s of a smooth and efficient payment of foreign remittances are as follo,s: There are poor infrastructure in rural and semi>ur)an economy Massive information asymmetry in the mar!et N?undi: mar!et is active in our country( There are inefficiency of financial institutions e.change houses are poorly regulated "o, literacy rate in the country *neven competition among financial institutions There are lac! of investment in IT )ac!)one development for mar!et efficiency 4.2 Cegative I&pact of 3e&ittance
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9ro)lems created )y remittance are as follo,s: rain drain: rain drain is one of the most significant pro)lems though ,e get an important portion of remittance from our educated s!illed person( After all it is not favoura)le )ecause educated people are very important for developing country( Income ine-uality: Income ine-uality may )e occurred )ecause there may )e emigrants: families and non>emigrants families in same area( Thus the gap )et,een poor and rich ,ill increase( Regional disparities: In the same case regional disparities occurred( Increased demand for imported goods: The people of remittance earning families are more ,illing to purchase foreign goods ,hich increase import( Remittance:s misuse: Some times the young people collect activities( E.ploitation )y the dalals: Sometimes remittance earning families are suffered )y the dalals and have to pay unreasona)le amount of money or a portion of their income to the dalals for helping to send a person a)road 4.3 8indings There are some pro)lems in rendering foreign remittance services( The reasons are e.plained in )elo,: Most )ranches are in ur)an area% so people have to come to those )ranches from remote area to collect money Sometimes in unavoida)le circumstance # ?artal or Stri!e& there are shortage of fund in rural )ranch( In that case customer )ecome dissatisfied( Sometimes net,or! is not availa)le% so service can not )e rendered( If server fails to ,or!% the service of foreign remittance can not )e rendered( Sometimes customer arrive after service hour #7pm&( The present system is time consuming )oth for )an!er and client( They must fill form( ATM facility is not sufficient( Sometimes the fund is not availa)le( Although remittance is very important to our country% authority does not underta!e a high pro+ect for enhancement it( The process of service is comple.( There are no longer plan to increase remittance )y providing s!illed la)or( remittance and get money on their hand and misuse that money in various types of immoral and illegal

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an!ers sometimes fall in trou)le as a result of lac! training(

5.1 #onc!usions In angladesh a)out 76A of the population lives )elo, the poverty line and each year natural calamities li!e devastating flood% cyclone% drought% etc( push millions of people )elo, the poverty line( A )ig percentage of its G4(F2 million la)ors are either unemployed or nominally employed( <urrently% a)out 2 million angladeshis ,or! a)road% and ,hen they send money to their families )ac! home these are in foreign currencies% and for the government these remittances are one of the most important sources of foreign e.change earnings( As one of the "east Developed <ountries #"D<&% foreign currency is needed for socio>economic development( Remittances help angladesh to ma!e investments for industrial development% moderni$e its industries )y importing high>tech machineries for e.port>oriented manufacturing% moderni$e its agriculture% invest in education% etc( A 8orld an! analysis said: PRemittance has )een a !ey driver of economic gro,th and poverty reduction in angladesh(P The migrants send )ac! )illions of dollars and the country can then use these resources for investment for industrial development% improvement of educational facilities and services% and e.tend and improve its health services( The money that is sent )ac! is also )eneficial to the families and to the country in that it helps reduce poverty and also allo,s for investment in small )usinesses and chances for furthering education( So government% concerned authorities and the people of remittance to improve its procedure( 5.2 3eco&&endations: Since there are huge opportunities of rural )an!ing% )ranch may )e set up in rural area( They should set up a )etter server for )etter net,or!ing facilities( They should compare their service ,ith other service They should ma!e the procedure easier( angladesh have to ta!e proper steps a)out

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 They should apply modern technology% improve speed and security( "a)or must )e made s!illed( Then they can send more remittance( Remittance must send in formal ,ay( Authority must underta!e a high pro+ect for enhancement of remittance( Sufficient fund on ATM must )e insured( More training must )e organi$ed for )an!ers(

EIE<*TI@E S*MMERH The services of a commercial )an! primarily revolve round mo)ili$ation of deposits and lending the same to those needing finance for their )usiness and other activities( services are e.tremely important for operation of a free mar!et economy( an!ing an! facilitates

savings% investment and payments( y mo)ili$ing deposits from individuals and )usiness and recycling money )y ,ay of loans and credits )an! perform the role of a catalyst for the flo, of money from the savers to productive use and investments( The range of services rendered )y )an! is very long and it is getting longer ,ith almost every passing day( 8hat started out as a safe place to deposits valua)les in the ancient temples has no, )ranched out in many other activities( ;ne of the important services offered )y )an! is remittance of fund from one person to another% one centre to another( ;ld systems are giving ,ay to faster and convenient means of transfers li!e electronic fund transfer( The topic of this report is Foreign Remittance Management and Impact of Remittance to the Economic Development: A Study on Southeast an! "td # andar a$ar% Sylhet&( I:ve made this report after completing my internship program in Southeast Sylhet& for fourteen ,ee!s( I tried to descri)e the remittance service of SE "% specially in andar a$ar% Sylhet% features of rendering remittance services( an! "td # andar a$ar%

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There are seven chapters in this report( First chapter is the introduction chapter ,here I descri)ed the )ac!ground of the study% methodology( Second chapter sho, the organi$ational overvie,( In third chapter I descri)ed a)out )an! % in fourth chapter I descri)ed a)out remittance% top recipients countries% remittance service process etc %in fifth chapter I discussed a)out remittance service of SE "# andar a$ar& (Then I sho,ed some findings in chapter si. and follo,s chapter seven ,hich is conclusion chapter(

http:55777.bb.org.bd5econdata57agere&itance.php http:55en.7ikipedia.org57iki53e&ittance http:55777.re&ittance.in5types2of2re&ittances.ht&! http:55bdne7s24.co&5bang!adesh520135105045bang!adesh2&ay2get2152bi!!ion2in2 re&ittance2in22013 http:55777.7or!dbank.org5en5ne7s5press2re!ease520135105025deve!oping2countries2 re&ittances2201327or!d2bank http:DD,,,()dresearchpu)lications(comD+ournalD http:55archive.thedai!ystar.net5ne7"esign5printEne7s.phpFnidG11'23< https:55777.southeastbank.co&.bd5re&ittanceEbusiness.php Annual Report of Southeast an! "td http:55&a&unseraji.7ordpress.co&520105055125foreign2re&ittance2of2bang!adesh5 http:DD,,,(unnayan(orgDdocumentsDCovernanceA14<apa)ilityDME*QA9RI" A14A14Q145/(pdf http:DD,,,(gfmag(comDgdp>data>country>reportsD/15>)angladesh>gdp>country> report(htmlRi.$$1,FFCtoaI http:DD,,,(gfmag(comDgdp>data>country>reportsD/15>)angladesh>gdp>country> report(htmlRi.$$1,FG$T9*C

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http:DD,,,(unnayan(orgDdocumentsDCovernanceA14<apa)ilityDME*QA9RI" A14A14Q145/(pdf

Bank
7 broader definition of a ban, is any financial instit+tion that recei0es! collects! transfers! pays! e%chan'es! lends! in0ests or safe'+ards money for its c+stomer) "ommercial -an, "ommercial -an, specialiBe in loans of commercial nat+re especially short term loans to ind+stries and b+siness) "entral -an, The -an, of (n'land was the first central ban, established in 1634 b+t it had a 0ery narrow obCecti0es)

Is!a&ic Banking

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