Foreign Exchange Management of State Bank of India (SBI),

Master of Business Administration

By
SHIVANGI SINGH
REGISTER NUMBER

21221043

Under the Guidance of

PROF. BABITA JHA

School of Business and Management

CHRIST (Deemed to be) University, Delhi NCR

MAY-JULY 2022
SUMMER INTERNSHIP REPORT

Summer Internship Project Report Foreign Exchange Management of

State Bank of India (SBI),
Master of Business on Administration
Summer Internship Project Report submitted in partial fulfilment of the
requirements for the degree of
Master of Business Administration

By
SHIVANGI SINGH

REGISTER NUMBER
21221043

Under the Guidance of

PROF. BABITA JHA

School of Business and Management

CHRIST (Deemed to be) University, Delhi NCR

MAY-JULY 2022
 Declaration

I hereby declare that the Summer Intern Project report entitled “Foreign Exchange
Management of State Bank of India (SBI)”, has been undertaken by me for the award of
Master of Business Administration. I have completed this study under the guidance of Prof.
Babita Jha.

I also declare that this Summer Intern Project report has not been submitted for the award of
any Degree, Diploma, Associate ship, Fellowship or any other title, in CHRIST (Deemed
to be University) or in any other university.

Place: Delhi NCR Shivangi Singh

Date: 18th May- 28th July 21221043

 Certificate

This is to certify that the Summer Intern Project report submitted by Shivangi Singh on the

title “Foreign Exchange Management of State Bank of India (SBI ), Delhi” is a record of
summer intern project work done by her during the academic year 2020-23 under my
guidance and supervision in partial fulfilment of Master of Business Administration.

Place: Delhi NCR PROF. BABITA JHA

Date: 18th May- 28th July School of Business and Management

CHRIST (Deemed to be University)

Delhi NCR
 Acknowledgement
I am indebted to many people who helped me accomplish this Internship successfully.

First, I thank the Vice Chancellor Dr Fr Abraham VM, CHRIST (Deemed to be

University), Bangalore, Campus Director Dr Fr Viju P Devassy, CHRIST (Deemed to be
University), Delhi NCR Campus for giving me the opportunity to do my project.

I thank Dr. Jain Mathew, Dean, Dr. Sachin Sinha, Head, School of Business and Management,
CHRIST (Deemed to be University), Delhi NCR Campus, for their kind support.

I thank Prof. Babita Jha for her support and guidance during the course of my internship.
I remember her with much gratitude for his patience and motivation, but for which I could not
have submitted this work.

I wish to express my sincere thanks to my corporate mentor, Anuj Jain DGM , State Bank of
India, Delhi, for giving me an opportunity to work under his guidance and successfully complete
my internship.

I thank my parents for their blessings and constant support, without which this
internship project would not have seen the light of day.

Shivangi Singh
21221043
 Page
Chapte TABLE OF CONTENTS
No.
r No.
1 Introduction
2 Industry and Company Profile
3 Project Design and Methodology
4 Data Analysis& Interpretation
5 Findings, Conclusion, Recommendations& Learnings
References
Appendix
 Questionnaire/Interview Schedule/Any other
Instrument
 Screenshot of Similarity Index Report
 Feedback forms by the corporate mentor, university
mentor and the viva panel
Table Page
No. LIST OF TABLES No.

1.1
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
Fig Page
No. LIST OF Charts No.

1.1 10
2.1 17
4.1 38
4.2 39
4.3 41
4.4 44
4.5 45
4.6 46
4.7 47
4.8 48
4.9 49
4.10 50
4.11 54
4.12 59
 Executive Summary

Foreign currency is used in

settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries.
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries.
Foreign currency is used in settlement of international trade between countries. Trading in
foreign exchange is the means by which values are established for commodities and
manufactured goods imported or exported between countries. Creditors and borrowers settle the
resulting international trade obligations, such as bank drafts, bills of exchange, bankers'
acceptances, and letters of credit, by exchanging different currencies at agreed upon rates. The
result of all this international trade is that financial institutions accumulate surpluses of different
currencies from loan repayments by foreign borrowers, and also from import-export trade
financing on behalf of bank customers. The inter-bank foreign exchange market is an over-the-
counter market, a network of commercial banks, central banks, brokers, and customers who
communicate with each other by telex and telephone throughout the world's major financial
centers. Foreign exchange traders also make markets or speculate in different currencies, usually
anticipating future appreciation of stronger currencies against weaker ones, through the foreign
exchange market. The SBI has played a pioneering role in shaping the future of the Banking
industry in India since its inception. The Bank started in 1955 with 480 branches and now it has
9033 branches in India and 56 branches/ offices all over Globe in 34 countries covering all the
time zones. The State Bank of India (SBI) was created on 1st July, 1955 by an Act of Parliament
of India to succeed the Imperial Bank of India. The origin of the State Bank of India goes back to
the first decade of the nineteenth century with the establishment of the Bank of Calcutta in
Kolkata, India on 2 June 1806. Three years later the bank received its charter and was re-
designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock
bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April
1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks
remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of
India on 27 January 1921.
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries
Foreign currency is used in
settlement of international
trade between countries.
Trading in foreign exchange
is the means by which
values are established for
commodities and
manufactured goods imported
or exported between
countries
 CHAPTER I

INTRODUCTION
The State Bank of India (SBI) was created on 1st July, 1955 by an Act of parliament of India to
succeed the Imperial Bank of India. The origin of the State Bank of India goes back to the first
decade of the nineteenth century with the establishment of the Bank of Calcutta in Kolkata, India
on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank
of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India
sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of
Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of
modern banking in India till their amalgamation as the Imperial Bank of India on 27 January
1921. The SBI has played a pioneering role in shaping the future of the Banking industry in India
since its inception. The Bank started in 1955 with 480 branches and now it has 9033 branches in
India and 56 branches/ offices all over Globe in 34 countries covering all the time zones. The
Bank also maintains a comprehensive correspondent.
relationship with 593 top ranking banks in 127 countries. Along with its seven associates Banks,
one wholly owned banking subsidiary and nine other non-banking subsidiaries and joint
ventures, the SBI has a towering presence in Indian financial sector covering capital market,
mutual funds, security trading, insurance, factoring services, credit cards, etc. State Bank of India
is the only Indian company received the prestigious award "Technology Award 2005" by The
Banker, London. State Bank of India, India’s largest commercial Bank operating since 1809 and
the only Indian Bank to be among the top 200 Banks in the world and top 20 Banks in Asia. Paid
up Capital of SBI is Rs.5.26 billion. At present Reserve Bank of India holding 31, 43, 38,700
numbers of shares and 21, 19, 60,178 numbers of shares holding by others. The percentage of
shareholding by RBI is 59.73% and others holding of SBI shares is 40.27%
The Bank opened its branch in Dhaka on 5th May, 1975, after the independence of Bangladesh.
Before independence, The Dhaka Bank, which was set up in the city in July 1846, was taken
over by the Bank of Bengal when it opened its branch in Dhaka in 1862. Subsequently the Bank
of Bengal was merged to Imperial Bank of India had a fairly wide spread branch network in the
then East Bengal at Dhaka, Chittagong, Narayanganj, Mymensing, Rangpur, Serajganj and
Chanpur. The Imperial Bank of India becoming the State Bank of India in 1955, provided
services in Bangladesh in its branches at Dhaka, Chittagong and Narayanganj continued till
1965, after a brief interruption of 10 years the bank was back in Dhaka in 1975 to continue with
its century long tradition of service to this part of the world. The State Bank of India was thus
born with a new sense of social purpose aided by the 480 offices comprising branches, sub
offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking
as mere repositories of the community's savings and lenders to creditworthy parties was soon to
give way to the concept of purposeful banking sub serving the growing and diversified financial
needs of planned economic development. The State Bank of India was destined to act as the
pacesetter in this respect and lead the Indian banking system into the exciting field of national
development. The Bank has opened its 2nd Branch ( 49th Foreign Branch) on 20th August, 2003
at Agrabad, Chittagong in Bangladesh to extend state-of –the art computerization Banking
services to the people of the port city and commercial capital of Bangladesh. The Bank has
opened its Third Branch (55th Foreign Branch) on 18th May 2005 at Sylhet in Bangladesh to
cater the banking services to the people of the southeast region of the country. The Bank has
opened its fourth Branch (56th Foreign Branch) on 15th May 2006 at Dhaka, Gulson Area in
Bangladesh to cater the banking services including processing of Indian VISA.
 CHAPTER II

PART- A INDUSTRY PROFILE

PART-B COMPANY PROFILE

‘State Bank of India (SBI), with a 200 year history, is the largest commercial bank in India in terms of
assets, deposits, profits, branches, customers and employees. The Government of India is the single
largest shareholder of this Fortune 500 entity with 61.58% ownership. SBI is ranked 60th in the list of
Top 1000 Banks in the world by "The Banker" in July 2012. The origins of State Bank of India date back
to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of
Bengal and two other banks (Bank of Madras and Bank of Bombay) were amalgamated to form the
Imperial Bank of India. In 1955, the Reserve Bank of India acquired the controlling interests of the
Imperial Bank of India and SBI was created by an act of Parliament to succeed the Imperial Bank of
India. The SBI group consists of SBI and five associate banks. The group has an extensive network, with
over 20000 plus branches in India and another 173 offices in 34 countries across the world. As of 31st
March 2012, the group had assets worth USD 359 billion, deposits of USD 278 billion and capital &
reserves in excess of USD 20.88 billion. The group commands over 22% share of the domestic Indian
banking market. SBI’s non- banking subsidiaries/joint ventures are market leaders in their respective
areas and provide wide ranging services, which include life insurance, merchant banking, mutual funds,
credit cards, factoring services, security trading and primary dealership, making the SBI Group a truly
large financial supermarket and India’s financial icon. SBI has arrangements with over 1500 various
international / local banks to exchange financial messages through SWIFT in all business centres of the
world to facilitate trade related banking business, reinforced by dedicated and highly skilled teams of
professionals.’

Divisions in Delhi Branch

The service divisions present in the State Bank of India, delhi Branch are as follows:

1 Foreign Exchange Division: The Foreign Exchange Department of this branch performs the
responsibility of foreign trade, foreign exchange and foreign remittance. Foreign Exchange Department in
charged by one officer grade-II and one officer grade-III A and one grade-III operate import and export
respectively. The major activities of foreign exchange department are- Opening L/C, Import financing
(PAD. B/E. LIM). Selling and purchasing dollar and Travelers checks, issuing bank guarantee etc.

2 General Utility Services: One Grade-II officer is designated to ensure the general banking utility
services as- different types account opening, providing account in this regards as well as about deposit
scheme, issuing check books, account close, maintaining register etc.

3 Cash Department: Cash department is responsible for receiving and paying cash to the clients. Two III-
A and one III-B officers perform the activities of this department under a Grade-III officer.
4 Bills & Remittance Department: This department handles all bills and remittance concern matter such
as bills issue, bills collection etc. One G-III, one GIII-A and one junior officer are performing the
activities under G-II officer.

5 Advance & Deposit Department: One Grade-I is in charge of this department and one G-III; G-I is
performing the advance activities under the G-I officer. One GII, two G-III-A and G-III-B officer
operates deposit department.

6 General banking utility services as- different type’s account opening, providing account in this regards
as well as about deposit scheme, issuing check books, account close, maintaining register etc.

7 Accounts Division: This division handles all the accounting functions of the branch. This division
maintains all sorts of accounts of the branch, performs fund management, expenditure, budgeting etc.

There are three departments under this division.

The departments and various and sections under these departments are the followings:
1. Import Department.
2. Export Department.
3. Foreign Remittance Department.

SBI, Delhi Branch services:

State Bank of India is rated as “A” category by Bangladesh Bank. All the five dimensions such as Capital
adequacy, Asset quality, and management quality, earning record, liquidity position and sensitivity to
market risk, of bank performance are combined into one overall numerical rating.

General Banking:

1 Cheque: A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand. This section issues cheque books, registers cheque books etc.

2 DD (Demand Draft): It should be payment to the carrier when he demands it. It is account payable
Without any account any one can pay to other.

3 TT (Telegraphic transfer): By TT Bank can transfer money easily one branch to another branch .Here
the total amount is converted in the code. After that the code is decode and collect the amount.
4 MT (Mail Transfer): Here the money is transferred by the mail.

5 PO (Pay Order): It is risk free handling of money. Anyone can make his money in a pay order; he can
cash it by giving to the branch. Then bank collected the money.

6 OBC (Outdoor Bill collection): If we have cheque of another bank we have to send it to our main
branch, if we are the only branch then we will send it to that bank main branch. It is used for outside area
of the city.

Foreign Trade:

1 Foreign Cheque: Some time exporter gave foreign cheque to the bank for payment Exporter gets it from
the importer.

2 FDD (Foreign Demand Draft): Sometime importer gave the FDD to the bank for collection.

3 FTT (Foreign Telegraphic transfer): Some time FTT gave to the bank for collection. It is specially used
for L/C.

4 FPO (Foreign Pay Order): Most of the times e FPO gave to the bank for collection. It is specially used
for L/C
5 FBC (Foreign bills Collection): Several times FBC gave to the bank for collection. It is specially used
for L/C.

Loan & Advances:

1 TOD (Temporary Overdraft): It not exists more than 30 Days. Here is no securities takes for this loan.
Manager can give this loan by his own power.

2 SOD (Secured Overdraft): Here loan is providing against FDR .Minimum 80% and maximums 90% of
loan is provides against a FDR. Here Loan time limit is one years. It is a continuous loan. It can be
increase by renewal the loan.

3 OD (Overdraft): Overdraft loan is provides beyond its limits. For this reason banks takes extra 2% of
interest for this special loan. This loan is only provides the faithful customer with the special
consideration.

4 CC (cash Credit): This loan is providing within the consideration of the customer business. Here the
bank is providing the loan by considering the customer current business position and by analyzing the
customer stocks.

5 TL (Term Loan): Term Loan is providing for the business purpose. Here the loan is given for various
time bases. The customer has to renewal this loan after the time limit .Here the interest is fixed up
according the term period.

6 PL (Personal Loan/ Consumer Loan): Here this loan is given for to help the customer to purchase
something’s .Such as Car television, Freeze etc. This loan is 24 Downloaded by SHIVANGI SINGH
21221043 (singh.shivangi@mba.christuniversity.in) lOMoARcPSD|15757753 providing to the service
holder as well as business man. For this reason they have to show there income source related
information.

7 Project Loan: Project loan is providing according to the customer project .it is basically a long term
loan. Here interest rate is fixed up according to the project criteria. Here bank takes the responsibility of
guardian as well as a partner of the project. Sometime thy will look after it from outside, Sometime they
involved it directly.
 CHAPTER III

PROJECT DESIGN AND

METHODOLOGY
FOREIGN EXCHANGE MANAGEMENT

Foreign exchange, by definition, is the financial instrument used to settle monetary transactions with
foreign countries. Foreign money is used in settlement of international trade between countries. Trading
in foreign exchange is the means by which values are established for commodities and manufactured
goods imported or exported between countries. Creditors and borrowers settle the resulting international
trade obligations, such as bank drafts, bills of exchange, bankers' acceptances, and letters of credit, by
exchanging different currencies at agreed upon rates.
The result of all this international trade is that financial institutions accumulate surpluses of different
currencies from loan repayments by foreign borrowers, and also from import-export trade financing on
behalf of bank customers.
The interbank foreign exchange market is an over-the-counter market, a network of commercial banks,
central banks, brokers, and customers who communicate with each other by telex and telephone
throughout the world's major financial centers. Foreign exchange traders also make markets or speculate
in different currencies, usually anticipating future appreciation of stronger currencies against weaker ones,
through the foreign exchange market.

One of the largest businesses carried out by the commercial banks is foreign trading comprises of import
and export business. The banks carry a lot of work relating to those fields. While performing these tasks,
banks should be very much cautious as lots of complexities are there. The Bangladesh Bank strictly
controls foreign trading. Therefore, any deviation or mistake will cost the bank a lot. The Foreign
Exchange Department of State Bank of India plays a significant role through providing different services
for the customers.

The total Foreign Exchange operation of Delhi branch is divided into separate three sections, these are:

i) Import,
ii) Export and
iii) Foreign Remittance.

Foreign Exchange Market:

The foreign exchange market is the market in which individuals, firms and banks buy and sell foreign
currencies or foreign exchange. The purpose of the foreign exchange market is to permit the transfers of
purchasing power denominated in one currency to another i.e. to trade one currency for another.

For example, a Japanese exporter sells automobiles to a U.S. Dealer for dollars, and a U.S. Manufacturer
sells tools to Japanese Company for Yen. Ultimately the U.S. Company would be interested in receiving
dollars, whereas the Japanese Exporter would want Yen. Because it would be inconvenient for the
individual buyers and sellers of foreign exchange to seek out to one another, a foreign exchange market
has been developed to act as an intermediary.

Thus an exchange rate can be defined as the price of one nation's currency in terms of another currency. It
is the Nation's commercial banks that operate as a clearing house for the foreign exchange demanded and
supplied in the course of foreign transactions by the nation's residents.

Transfer of Purchasing Power is necessary because International Trade and Capital Transactions usually
involve parties living in countries with different national currencies. Each party wants to trade and deal in
his own currency but since the trade can be invoiced only in a single currency, the parties mutually agree
on a currency beforehand.

Foreign Exchange is defined as foreign currency including:-

a) All deposits, credits, balances payable in any currency

b) Any drafts, traveller cheque, letters of credit and bills of exchange expressed or drawn in Indian
Currency and payable in foreign currency.

c) Any Instrument giving any person the option of making it payable either partly or fully in a foreign
currency. Here the term foreign currency includes coins, bank notes, postal notes, postal orders and
money orders.

In other words, foreign exchange includes all kinds of claims of the residents of a country to foreign
currency payable abroad.
Exchange Rate Quotations

An exchange rate quotation is the price of a currency stated in terms of another; it is similar to the
expression of the price of a commodity. Yet, there is a peculiarity attached to the exchange rate quotes. In
case of a commodity, there is only one way to express its price - as number of units of money needed to
buy one unit of the commodity. In case of an exchange rate quotation, both the items involved are a form
of money, i.e. both are currencies. So the price of any one of them can be quoted in terms of one unit of
the other, Due to this, there exists a number of ways to express the exchange rate between a pair of
currencies.

A quote can be expressed as European or American only if one of the currencies is the dollar. An
American quote is the number of dollars expressed per unit of any other currency, while a European quote
is the number of units of any other currency expressed per dollar. In almost all the countries, most of the
exchange rates are expressed as European Quotes. The British pound, the Irish pound and the South
African rand are a few examples of the currencies expressed in American Quotes.

Foreign Exchange Functions of Commercial Banks:\

Commercial banks mainly manage their foreign exchange functions through the following activities:

1 Financing for import and export through issuing, handling and converting foreign currencies.

2 Endorsement, purchase and sales of foreign currencies to and from individuals, businesses and
government.
3 Handling inward and outward remittances.

Import Finance Management

Import trade control Import of goods against Bangladesh is regulated by the ministry of commerce in
terms of import and export (control) Act, 1950; with the import policy order issued biannually, and the
public note issued from time to time of the office of chief controller of import and export. (CCI&E).in the
instruction contained in the chapter applies to sales of foreign exchange or transfer to nonresident taka
accounts against Import of goods into Bangladesh.

Registration of importer:
In term of exporters, importer and indenters (Registration) order, 1981 no person can import goods into
Bangladesh unless he is registered with the chief controller of importer and exporter or exempted from the
provision of said order. Before any letter of credit (L/C) is opened or remittance maid for importer into
Bangladesh the AD should verify the importer is registered with CCI&E or otherwise exempted from
such registration. The AD should ensure that the registration number of the importer is invariably
furnished on the IMP form. Where the importer is exempted from such registration, a suitable mention of
this fact should be made on the IMP from.
The AD must ensure that they deal only with the known customer having a place of business in
Bangladesh arid can be traced easily should any occasion arise for this purpose.

L/C authorized from:

(a) The ADs are authorized to issue letter of credit authorization form (L/CAF) in conformity of the
IPO allowing importers into Bangladesh. L/CAF are importer permits or clearing permits are not
required for importers by the ministries and government department. The L/CAF, available with
ADs, are issued in set of 5 copies each of these, the one marked “For Exchange Control Purpose”
 should be used for opening L/C and for effecting remittances. The Ads should be very much
careful of the compliance with the instruction of the IPO and relevant public notice. In the matter
of issued L/CAFs.

(b) If foreign exchange is intended to buy from the Bangladesh bank against L/CAFs it has to be
registered with the Bangladesh bank’s registrations unit located in the concentrated area office of
the CCI&E .For such registration the L/CAF, duly filled In and signed by the importer and
authenticated by the AD, shall be submitted by the AD to the concentrated registration unit. The
unit will put a registration number on all copies and emboss a security seal.

After registration the original and duplicated copies of the L/CAFs will be delivered to the
Authorized representatives of the Ads the triplicate and quadruplicate copy will be passed on to
the concerned area office of the CCI&E and the registration unit will retain the quintuplicate.

(c) Where no registration of L/CAF is needed the AD will send the triplicate and quadruplicate copies
on the concerned area office of the CCI&E, retaining the other copies with it. Where an import is
against a source of financing (Foreign Project Loans, Grants) usable through a specific designated
bank ,the nominated AD of the importer will forward to designated bank the authenticated L/CAFs
the designated bank will be eventually forward the triplicate and quadruplicate copies of L/CAF to
the area office of the CCI&E .

Export Finance Management

Government notification
Govt. notification no.1(6)-ECS/48 and 1(7)ECS/48 dated the first july,1948 issued pursuant to section 12
of the FER Act prohibit export of any goods directly or indirectly to any place outsides Bangladesh,
unless a declaration is furnished by the exporter to the collector of custom or to such other person as the
Bangladesh Bank may specify in this behalf that foreign Exchange representing full export value of the
goods has been or will be disposed of in a manner and within a period specified by the Bangladesh Bank .

Export exempted from representation of export proceeds:

The prohibition mentioned above does not apply the export of:

a) Trade sample sent by the registered exporter up to the values prescribed in the export policy in
force .Personal effect, whether accompanied or unaccompanied, of the travelers; Ships stores and
transshipments cargo;

b) Good shipped under the order of the Government of Bangladesh or of such officer as may be a
appointed by the Government in this behalf or of the Military, navel or Air force authorities in
Bangladesh for the Military, navel or Air force requirements .In the case of export by post, a certificate
signed by a gazette officer or by any person entitled to use service postage stamps should be pasted on the
outer cover of the parcel to the above effect.

Export trade control regulation:

Foreign Exchange regulations regarding export cover all goods exported to all destinations regardless of
whether they are subject to Export Trade Control Regulation. Similarly, nothing in the foreign exchange
regulation relieves the exporters from the necessarily of complying with the export trade control
regulation prescribed by the government, including the necessarily of obtaining export licenses in case of
goods the export of which required such licenses.

All Export to which the requirement of declaration applied must be declared on the EXP Form. These
forms will be supplied by the ADs to their exporter clients.

Method of receiving payment against export:

Payment for goods exporter from Bangladesh should be received through an AD in freely convertible
foreign currency or in taka from a nonresident TK account .Receipts against export under various barter
and bilateral arrangements should be settled as per instruction issued by the Bangladesh Bank from times
to time.

Registration of exporter:

The Ads should, before certifying any export from, ensure that the exporter is register with the CCI&E
under the Registration (Importer and Exporter) order 1952. The registration number should be quoted on
the relatives EXP Form.

Pre-shipment inspection fee:

Ads may establish L/Cs for pre-shipment inspection favoring internationally reputed pre-shipment
inspection companies. If the relative sales contract or L/Cs so stipulate, as per term of contract entire by
the importer with the pre shipment inspection companies. Remittances against such L/Cs pre-shipment
inspection may be e effected accompanied by relative pre-shipment inspection report. These remittances
should be approved and reported in TM Form.

L/C on different payment basis:

(a) Subject to compliance with other conditions, import L/Cs may be opened on deferred payment
(DA) basis in die following cases:

(i) Capital machinery import on up to three sixty days lead time basis.
(ii) Industrial raw material import foe own use of industrial importer (including Back to
Back import discussed in detail in the next section) on up to 180days lead time basis;
(iii) Import of costal Vessels including oil tankers, and ocean-going vessels including those
procured for scrapping on up to 360 days lead time basis.
(iv) Import of agricultural implement s and chemical fertilizers on up to 180days basis.
(v) Import of life saving drugs on up to 90 days lead time basis.

For such differed payment import, the prices must be internationally competed and lead time
interest if any should not be at the rate higher than the LIBOR for the relative period or the
equivalent rate prevailing in the currency of the countries of the supplier.

(b) Instructions regarding opening of import L/Cs on longer lead time terms against suppliers ‘credits
obtainable by industrial enterprises in the private sector as per general or specific BOI approval
are contained. In chapter 23 of the publication of Bangladesh bank.

Import and Export Performance of SBI

A three years projection of the performance of SBI Delhi Branch in export and import is given here by:
Year L/C OPEN IMPORT EXPORT Yearly Yearly
NO. Import Export
Growth % Growth %
2019 164 Tk.83142940.00 Tk.1740502744.8 ------ ------
$1597253.50 0 $33598109.27

2020 194 Tk.117707456.00 Tk.2014985870.8 23.69 11.63

$1918873.00 1 $34692104.31

2021 48 Tk.49968374.00 Tk.447601778.59 ------ ------

$853530.00 $7822944.98

A three years projection of remittance performance of SBI Sylhet Branch is given here by:

Months 2019 2020 2021

January 52691 10417

February 23413 27296

March 26238 38831

April 61412
May 46154
June 15183
July 58418
August 46823
September 10365
October 42132 84674

November 32303 10401

December 21052 42709

($1=Tk.69.05)
 CHAPTER IV

DATA ANALYSIS&
INTERPRETATION

OBJECTIVE- TO KNOW THE SINCE HOW MANY YEARS CONSUMER POSSESS SBI
BANK ACCOUNT.

PARTICULAR FREQUENCY PERCENTAGE

ONE YEAR 27 18
TWO YEAR 59 39.33
THREE YEAR 20 13.33
FOUR YEAR 14 9.33
FIVE YEAR 13 8.67
MORE THAN FIVE YEAR 17 11.33
TOTAL 150 100
 CHAPTER V

FINDINGS, CONCLUSION &

RECOMMENDATIONS
REFERENCES
APPENDIX
Feedback from the Mentor
Feedback from Viva-Voce – Panel comments
 SUMMER INTERNSHIP PROJECT
Review & Assessment Record (Pre-Submission Stage) – Mentor
Name of student:
Reg. No.

Positives of report:

Areas of Improvement:

Names of Mentor: Signature:

Date:
 SUMMER INTERNSHIP PROJECT
Review & Assessment Record (Pre-Submission Stage) – Viva panel
Name of student:
Reg. No.

Positives of report:

Areas of Improvement:

Names of viva panel: 1) Signature

2) Signature
Date: