Janata Bank Remittance Services

JANATA BANK LIMITED
Table of Contents
Chapter Page no.
Letter of transmittal………………………………………………………….. i
Declaration……………………………………………………………………. ii
Acknowledgement…………………………………………………………….. iii
Executive summary…………………………………………………. iv
Chapter-1
Introduction.................................................................................................................6
1.1: Internship responsibilities………………………………………………….. 6
1.2: Objectives of the study:...................................................................................7
1.3: Methodology of the study:..............................................................................8
1.4: Sources of data:...............................................................................................8
1.5: Scope of the study:.........................................................................................9
1.6: Importance of the study:..................................................................................9
1.7: Limitations of the study:...............................................................................10
Chapter-2
Janata Bank Limited at a glance...................................................................................11
2.1: Historical Background of JBL:.....................................................................12
2.2: Corporate Profile of JBL:…………………………………………………. 13
2.3:Awards:……………………………………………………………………. 14
2.4: Mission and vision of Janata Bank Limited:.................................................14
2.5: Corporate values of Janata Bank Limited:....................................................15
2.6: Management:................................................................................................15
2.7: Operational network:.....................................................................................16
2.8: Orientation of Janata bank ltd, Shyamoly corporate branch.........................17
FOREIGN & DOMESTIC REMITTANCE Page 1

JANATA BANK LIMITED
2.9:Values of Janata Bank Ltd:…………………...............................................18

2.10: Business Philosophy of Janata Bank Ltd:………………………………. 18
2.11: Services provided by Janata bank ltd:.........................................................18
2.12: Financial position of Janata bank ltd:..........................................................20
Chapter Page no.
Chapter-3
Basic Terms of Remittance..........................................................................................22
3.1: Domestic/Local Remittance:.........................................................................23
3.1.a: Payment Order/Pay Order(PO) :..............................................................24
3.1.b: Demand Draft(D.D) :...............................................................................24
3.1:c: Telegraphic/Telephonic Transfer(T.T) :...................................................25
3.1.d: Mail Transfer(MT)...................................................................................25
3.1.e: Security Deposit Receipt(SDR):...............................................................25
3.1.f: Pay Slip.....................................................................................................25
3.2: Foreign Remittance:......................................................................................26
3.2.a: Foreign inward remittance .....................................................................27
3.2.b: Foreign Outward Remittance..................................................................29
Chapter Page no.
Chapter-4
Remittance Services Operation....................................................................................32
4.1 Introduction:...................................................................................................33
4.2 Remittance activities of Janata bank limited..................................................34
4.2.1: Domestic/Local Remittance operation of JBL :..........................................34
4.2.1.A: Payment Order (PO)............................................................................34

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4.2.1.A(a): Payment Order Issue/Collection :...................................................35

4.2.1.A(b) Issuing of pay Order........................................................................35
4.2.1.A(c): Different modes of Po when a customer can purchase...................35
4.2.1.A(d): Settlement of a pay Order :............................................................36
4.2.1.A(e): Cancellation of a pay Order:...........................................................36
4.2.1.A.(f): When pay Order is lost :...................................................................36
4.2.1.B: : Demand Draft (DD):
...........................................................................................................................36
4.2.1.B(a): Issuing of Demand Draft:..................................................................37
4.2.1.B(b): Procedure of Demand Draft Payment:
:............................................................................................................................38
4.2.1.B(c): Cancellation of Demand Draft:.......................................................39
4.2.1.B(d): Issuing of Duplicate Demand Draft:
...........................................................................................................................39
4.2.1.C: Telegraphic Transfer (TT):
...........................................................................................................................39
4.2.1.C(a): Accounting entries for TT...............................................................40
4.2.1.C(b): Procedures for the incoming TT:....................................................40
4.2.1.C(c): Endorsements :..................................................................................40
4.2.1.D: Mail Transfer (MT):
..............................................................................................................................40
4.2.1.E: Pay Slip.................................................................................................41
4.2.2.: Foreign Remittance operation of JBL.....................................................41

4.2.2.A: Foreign Remittance..................................................................................41
4.2.2.A(a): Foreign inward remittance....................................................................43

JANATA BANK LIMITED
Chapter Page no.
Chapter-5
Findings, Recommendations & conclusion...................................................................45
5.1: Findings…………………………………………………………………… 46
5.2: Recommendations............................................................................................47
5.3: Conclusion.......................................................................................................48
Reference…………………………………………………………………… 49
Acronyms & abbreviations used in this report…………………………… 50

JANATA BANK LIMITED
CHAPTER-1
INTRODUCTION

JANATA BANK LIMITED
Chapter-1
Introduction
1.1: Internship Responsibilities:

Banking is one of the most important sectors that play a significant role for country’s wealth
building activities. Commercial banks are certainly profit making Financial Institutions. These
institutions also play great role in the money market of economy.
As a part of fulfilling the requirements of completing the degree of BBA program, I was placed
in the Janata Bank Limited, Shyamoly Corporate Branch, under the internship program of the
Department of Management Studies of Jagannath University . During the one & a half months of
internship in the said Branch the topic of the study was officially assigned to me was “Foreign
& Domestic Remittance of Janata Bank Limited”.
In my internship program, at first few days I have surf every possible desk to make me familiar
with officials & their activities. I have tried to see the things which are being done in each
department of the branch. Each official are more co-operative which make me easy to understand
about banking activities. In all the time of my internship I tried my best to gather practical
knowledge about banking activities which could help me to make my internship report. As my
internship program officially assigned in Remittance Operation, my major focus was on that
activities. I had an opportunity to be acquainted with the practical banking prevail in Shyamoly
Corporate Branch, JBL. The knowledge, which has been acquainted in my practical orientation
period, I have tried my level best to show in this report.

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1.2: Objectives of the study:

The general objective of the study is to gather practical knowledge regarding banking system and
operation. The practical orientation gives me a chance to co-ordinate theoretical knowledge with
the practical experience. The objectives are as follows
 To get an overall idea about the Remittance of Janata Bank Limited.
 To apply theoretical knowledge in the practical field.
 To describe the organizational structure, management, background, functions and
objectives of the bank and its contribution to the national economy.
 To achieve overall understanding of Janata Bank Limited.
 To analyze the financing systems of the bank to find out any contributing field.
 To examine the profitability and productivity of the bank.
 To acquire knowledge about the everyday banking operation of Janata Bank Limited.
 To understand the real management situation and try to recommend for improving
existing problems.
 To The Internship is very helpful to bridge the gap between the theoretical knowledge
and real complete the partial fulfillment of the requirement of BBA Degree
 To implementation of Banking Policies.

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1.3: Methodology of the study:

The report is prepared on the basis of foreign Remittance operation of Janata Bank Limited. To
conduct the overall study, at first I explored the sources of Primary and Secondary information
and data. Different files of the department and statement helped me to prepare this report. I have
interviewed the JBL officials for getting more information. To present numerical data, I used the
Annual Report of 2012, 2011, 2010, 2009 and monthly statement of November & December
2013 of Janata Bank Limited of Shyamoly Corporate Branch.
1.4: Sources of data:

As mentioned earlier, mainly primary data has been used. Sometimes the customers gave some
important information regarding the services of the Bank:
 1.4.1 Primary Data:

 Face to face conversation with the officer.
 Direct observation.
 Face to face conversation with the client. .
 Practical Deskwork
 Direct working with officials of JBL
 Simple Depth interview technique was used by asking number open-ended
questions to collect the information.
 Relevant file study as provide by the concerned officer
 : 1.4.2 Secondary Data
 Monthly Statement of JBL

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 Annual Report of JBL

 Working Papers
 Official Files & records
 Selected books
 Other manual information
 Websites
 Various publications on the Bank
 Newspaper reports in this concern.
 Previous research books and journals
1.5: Scope of the study:

This study provides those scopes of knowing the following:
 History and performance of Janata Bank Limited.
 Short description of overall division of JBL.
 Total concept of Remittance Operation.
 Regular activities of JBL.
1.6: Importance of the study:

Modern Banking system does not execute the normal Banking activities. As a service
oriented organization the management should keep an eye on their retail products and
tout on these for sale. The Bank should design their products in such a way that can cater
to the needs of people of different classes. In fact Banks offers Its various products
(loans and other services). Thus this study focuses on these products base marketing of
financial products as how they are designed for which segment of customers they are
offered, what are their usual benefit, what are the profits and changes to the customers,
what type of promotion measures the Banks take for marketing these services smoothly
and they like.
Basically, this study is conducted to unearth The Performance of General Baking&

Remittance related activities taken by the Bank and degree of customer satisfaction. The
management should take new faces with innovative features touting diversified benefits
to attract the customers. As a result at that, the practice of General Baking& Remittance
at the Public Limited Bank have been the concern this study with analysis of the Janata

JANATA BANK LIMITED
Bank Ltd. could help the management to think about their performance whether the
present design of the of General Baking& Remitance practices are effective or they
require to be re-furnished. The management of this Bank can identify the major
bottlenecks of general Banking services and Remitance can attention, conviction and
purchase by using this report effectively.
1.7: Limitations of the study:

To provide current information and to make the report read-worthy, support from various sources
is a must. In spite of my best effort, I could not collect some information required at the time of
the study. So this study is not free from the following limitation:
 For the whole internship I had only 52 days, which were not sufficient. So I faced time
shortage extremely.
 Sometimes the officers of Janata Bank Limited were very busy. For this reason the
personal did not co-operate me in that time.
 Lack of previous experience to prepare this type of report and it is totally new to me as an
intern.
 Lack of opportunity to access to internal data.

JANATA BANK LIMITED
CHAPTER-2
Janata Bank Limited

At a Glance

JANATA BANK LIMITED
Chapter-2
Janata Bank Limited at a glance
2.1: Historical Background of JBL:

Janata means people. Immediately after the emergence of Bangladesh in 1971, the erstwhile
United Bank Limited and Union Bank Limited were nationalized under Bangladesh Bank
(Nationalization) Order 1972 and renamed as Janata Bank. It has been operating since its
inception in 1972 both in Bangladesh and overseas. Janata Bank Ltd. has been playing a
significant role in the economic development of the country by mobilizing savings and
distributing funds into different productive sectors.
In may 21, 2007 janata bank limited incorporated as public limited company as per company
Act. 1994 and took over the business and then Janata Bank with all of its assets, liabilities,
right, power, privilege and obligation on a going concern basis through a vendor agreement
signed between the Peoples Republic of Bangladesh and Janata Bank Limited on 15 November
2007 with a retrospective effect from 1 July 2007. All of its operational activities are governed
by the Bank Companies Act 1991.
Janata Bank Limited has an authorized capital of Tk. 20000 million (approx. US$ 283.33
million), paid up capital of Tk. 8125.00 million, reserve of Tk.13423.01 million and retained
surplus Tk. 7902.32 million. The Bank has a total asset of Tk. 440885.59 million as on 31 st
December 2011.

JANATA BANK LIMITED
2.2:Corporate Profile of JBL:

Name of the Company : Janata Bank Limited
CEO & Managing Director : S.M. Aminur Rahman
Legal Status : Public Limited Company
Genesis : Emerged as Nationalized Commercial

Bank in 1972, following the Bangladesh
Bank (Nationalization) Order No.1972
Registered Office : Janata bhaban 110, Motijheel Commercial

Area, Dhaka, Bangladesh
Authorized Capital : Tk. 20000 million (appr. US$ 289.85 millions)
Paid up Capital : Tk. 5000.00 million,
Board of Director : 15 person
Total Employee : About 15000
Reserve : Tk.10823.00 million
Total asset : Tk. 282423.00 million (as on 30th Nov 2011)
Number of Branches : 877 br. including 4 overseas branches at U.A.E
Phone Number : 9551337, 9565384, 9567675, 9560000,

9560027-30, 95556245-49
Website : www.janatabank-bd.com

JANATA BANK LIMITED
2.3:Awards
ICMAB Best Clint Award - 2011 in Bangladesh
International Award -"World's Best Bank Award-2009 in Bangladesh
Janata Bank Limited receives "Asian Banking Awards 2005" on Credit Scheme for Handicapped
People:
International Award -The Bank of the Year-2004 in Bangladesh
Janata Bank Limited receives "Asian Banking Awards 2004" on Financing Program for Women
Entrepreneurship
Janata Bank Limited gets “The Banker Award-2003”
International Award-The Bank of the Year-2002
International Award-The Bank of the Year-2001
2.4: Mission and vision of Janata Bank Limited:

2.4.1: Mission
The mission of the bank is to actively participate in the socio- economic development of the
nation by operating a commercially sound banking organization, providing credit to viable
borrowers, efficiently delivered and competitively priced, simultaneously protecting depositor’s
funds and providing a satisfactory return on equity to the owners.

JANATA BANK LIMITED
2.4.2: Vision
The vision statement of Janata bank limited is to become the effective largest commercial bank
in Bangladesh to support socio-economic development of the country and to be a leading bank in
South Asia.
2.5: Corporate values of Janata Bank Limited:
2.6: Management:
The Board of Directors is the apex policy-making body of Janata Bank Limited, which has
autonomy to organize, operate and manage its affairs on commercial consideration subject to
broad policy of the government. Presently, the Board consists of a Chairman a Managing
Director and ten Directors. It is to be noted that the Chairman and MD, appointed by the
Government.
The Managing Director (MD) is the Chief Executive of the Bank. He executes all the activities
under the direction of the Board. The banking officers of the Bank are selected by the “Bankers

JANATA BANK LIMITED
Recruitment Committee” (BRC) and the other line and staffs personnel are appointed by the
Bank’s own Recruitment Committee. Janata Bank Limited Management Hierarchy:
Board of Directors
Managing Directors (MD)
Deputy Managing Director (DMD
General Manager (GM)
Deputy General Manager (DGM)
Assistant General Manager (AGM)
Senior Executive Officer (SEO)
Executive Officer (EO)
Senior Officer (SO)
Officer
Diagram: Management Hierarchy

JANATA BANK LIMITED
2.7: Operational network:

Janata Bank Limited operates through 904 branches including 4 overseas branches at United
Arab Emirates. It is linked with 1202 foreign correspondents all over the world. It has 8
divisional offices, 15 area offices, & the rest are regional office. The Bank employs more than
18(fifteen) thousand persons. The corporate head office is located at Dhaka with 35 (thirty five)
Divisions. As a part the conscious development of existing Human Resources, Janata Bank
through its three training institutes during the year 2003 imparted training to 4699 officers and
staffs. It computerized 90 important branches; nonstop services introduced in 88 branches;
ONLINE Banking in 60 important branches under important branches under implementation;
ATM, EFT facilities.
Janata Bank Ltd. has a plan to switch over to a multi disciplinary financial institution by
conducting Merchant Banking business and Islamic Banking operation.
2.8: Orientation of Janata Bank Ltd, Shyamoly corporate branch

Janata Bank Limited Shyamoly Corporate Branch is located in Shyamoly, Dhaka-1207. The
corporate branch does all the banking functions and I worked in Ramittance section of Janata
Bank Limited.This branch total employees are about 33 and it performs all basic functions. The
head of the department is Deputy General Manager and the lower rank is sub staff. The
positional hierarchy of Shyamoly Corporate Branch of Janata Bank Limited is given bellow:
Deputy General Manager (1)
Assistant General Manager (1)
Senior Executive Officer (7)
Executive Officer (6)
Assistant Executive Officer (10)

JANATA BANK LIMITED
Assistant Officer (4)
Sub Staff (4)
Source: Secondary information (branch office file)
2.9:Values of Janata Bank Ltd:

JANATA BANK LTD. holds the following values and will be guided by them as they do their
jobs.
Creating an honest, open and enabling environment.

Have a strong customer focus and relationships based on integrity, superior service and
mutual benefit.
Strive for profit & sound growth.
Work as a team to serve the best interest of their owners.
Relentless in pursuit of business innovation and improvement.
Value and respect people and make decisions based on merit.
Base recognition and reward on performance.
Responsible, trustworthy and law-abiding in all that they do.
2.10:Business Philosophy of Janata Bank Ltd:

JANATA Bank Ltd, a full service commercial bank with Local and International Institutional
shareholding, is primarily driven by creating opportunities and pursuing market niches not
traditionally met by conventional banks.
Today JANATA Bank is one of the fastest growing banks in the country. In order to support the
planned growth of its distribution, network and for its various business segments.
The reason JANATA Bank is in business is to build a profitable and socially responsible
financial institution focused on markets and businesses with growth potential, thereby assisting
JANATA and stakeholders build a “just, enlightened, healthy, democratic and poverty free
Bangladesh. Which means to help make communities and economy of the country stronger and

JANATA BANK LIMITED
to help people achieve their dreams. They fulfill the purpose by reaching for high standards in
everything we do. For their customers, their shareholders, their associates and their communities
upon, which the future prosperity of their company rests
2.11: Services provided by Janata Bank Ltd:

The Bank provides all kinds of commercial banking services to its customers including accepting
deposits, extending loan & advances, discounting & purchasing bills, remittance, money transfer,
foreign exchange transaction, guarantee, commitments etc. The principal activities of its
subsidiary are to carry on the remittance of hard-earned foreign currency to Bangladesh. Janata
Bank Ltd. has a plan to switch over to a multi disciplinary financial institution by conducting
Merchant Banking business and Islamic Banking operation.
Janata Bank Ltd. with its wide ranging branch network and skilled personnel provides prompt
and personalized services like issuing:
a. Demand Draft
b. Telegraphic Transfer
c. Mail Transfer
d. Pay Order
e. Security Deposit Receipt
f. Transfer of fund by special arrangement,
i) Normal transfer
ii) Electronic transfer through Ready Cash Card.
The Bank provides the following Internet facilities:
 Current/Savings/STD account status
 FDR account status
 Advance account status
 Loan account status
Remittance services are available at all branches and foreign remittances may be sent to any
branch by the remitters favoring their beneficiaries. Remittances are credited to the account of
beneficiaries instantly or within shortest possible time. Janata Bank Ltd. has correspondent
banking relationship with all major banks located in almost all the countries/cities. Expatriate

JANATA BANK LIMITED
Bangladeshis may send their hard earned foreign currencies through those banks or may contact
any renowned banks nearby ( where they reside/work) to send their money to their dear ones in
Bangladesh.
Janata Bank Ltd. has already established a worldwide network and relationship in international
Banking through its 4 (four) overseas branches and 1202 foreign correspondents. The Bank has
earned an excellent business reputation in handling and funding international trade particularly in
boosting export & import of the country. The Bank finances exports within the frame-work of
the export policy of the country.
2.12: Financial position of Janata Bank Ltd:

Janata Bank Limited
Balance Sheet
As at 31 December 2011
Particulars 2011 2010

Taka Taka
Property and assets

24,115,279,336 17,597,592,643
Cash
Cash in hand (including foreign currencies) 5,749,526,323 4,126,838,534
Balance with Bangladesh Bank and its agent
bank(s) (including foreign currencies) 18,365,753,013 13,470,754,109
Balance with other banks and financial 8,888,361,333 6,167,291,516

institutions
In Bangladesh 933,742,707 1,955,393,176
Outside Bangladesh 7,954,618,626 4,211,898,340
Money at call on short notice 18,475,731,365 3,607,144,341
Investments 90,905,865,599 57,514,002,747
Government 81,082,828,429 52,365,407,137
Others 9,823,037,170 5,148,595,610
Loans and advances 257,801,035,388 225,732,208,529

Loans, cash credit, overdrafts etc. 229,836,793,635 201,992,193,398
Bills purchased and discounted 27,964,241,753 23,740,015,131
Fixed assets including land, building, 9,634,633,898 6,299,906,482

furniture
Other and fixtures
assets 30,568,462,213 28,315,781,897
Non-banking assets - -
Total property and assets 440,389,369,132 345,233,928,155

JANATA BANK LIMITED
2011 2010
LIABILITIES AND CAPITAL Taka taka
Liabilities
Borrowings from other banks, financial 63,498,144 50,488,931
institutions
Deposits and andother
agents
accounts 361,676,694,608 286,566,890,434
Current accounts and other accounts etc. 60,329,837,671 51,538,944,043
Bills payable 3,069,468,094 3,238,018,927
Savings bank deposits 87,528,373,490 82,657,203,480
Fixed deposits 210,749,015,353 149,132,723,984
Bearer certificates of deposits - -
Other deposits - -
Other liabilities 48,496,261,560 38,226,221,808
Total liabilities 410,236,454,312 324,843,601,173
Shareholders' equity 30,152,914,820 20,390,326,982

Share capital-paid-up 8,125,000,000 5,000,000,000
Statutory reserve 5,965,140,845 4,187,614,332
Legal reserve 75,301,079 62,678,337
Assets revauation reserve 7,150,898,779 4,251,013,927
Foreign currency translation reserve 233,482,825 115,800,000
Revaluation reserve for HTM 113,021,285 367,649,079
Revaluation reserve for HFT 587,748,684 1,238,393,681
Surplus in profit/(loss) account 7,902,321,323 5,167,177,626
Total liabilities and shareholders' equity 440,389,369,132 345,233,928,155
Janata Bank
Limited
Net Profit & EPS trend
YEAR TAKA EPS(TK)
2008 3,187,156,537 83.88
2009 3,004,322,838 78.2
2010 4,907,974,833 69.66
2011 4,444,908,801 60.45

JANATA BANK LIMITED
CHAPTER-3
BASIC TERMS OF
REMITTANCE

JANATA BANK LIMITED
Chapter-3
Basic Terms of Remittance
Remittance:
The major function of commercial Banks is mobilization of fund. Other than this, banks provide
ancillary services to its clients. Clients need to remit money from one place to another for their
business or other purposes. Banks fulfill this need of customers by means of remittance service.
The word ‘Remittance’ means sending of money from one place to another place through post or
telegraph. Banks extend this facility to its customers by means of receiving money from one
branch of the bank and making agreement for payment to another branch within the country and
outside of the country. The person who is the receiver of the remittance is remittee. The person
who is the sender of the remittance is remitter or remiitor.
.Money can be remitted domestically or internationally, which known as local remittance and
foreign remittance.
3.1:Domestic/Local Remittance: It aids to remit fund from one place to another

place on behalf of its customers as well as non- customers of Bank. JBL has its branches in the
major cities of the country and therefore, it serves as one of the best mediums for remittance of
funds from one place to another.

JANATA BANK LIMITED
There are three ways of transferring fund domestically. The modes of transferring funds are:
Pay- Order (PO).
Demand Draft (DD).
Telegraphic Transfer (TT).
Mail Transfer (MT)
SDR Pay Slip
3.1.a:Payment Order/Pay Order(PO)

This is an instrument issued by the branch of a bank for enabling the Customer/Purchaser to pay
certain amount of money to the order of a certain person/firm/organization/office within the
same clearinghouse area of the pay order-issuing branch.
Characteristics of P.O
The issuing branch and paying branch are same.
Application for payment within the clearinghouse area of the issuing branch.
This may be open or can be crossed.
Charge
3.1.b:Demand Draft(D.D)
This is an instrument through which customer’s money is remitted to another
person/firm/organization in outside the clearinghouse area from a branch of one bank to an
outstation branch of the same bank or to a branch of another bank (with prior arrangement
between that bank with the issuing branch). This is an order instrument in which the issuing
branch gives instruction to the payee/drawer branch to pay certain amount of money to the order
of certain person/firm/organization. Commission, vat and postage is charged on issue of DD
entries for issuing DD.
Application Issuing branch preparesBranch
DD gives DD to purchaser
Purchaser sends DD to payee
submitted
to branch
Paying branch pays the amount

Payee presents DD to branch
Flow chart for a DD

JANATA BANK LIMITED
3.1.c:Telegraphic/Telephonic Transfer(T.T)
This is a mode of transfer of customer’s money from a branch of one bank to another branch of
the same bank through telegraphic/telephonic message. The issuing branch used to send the
message of such remittance through telegraph/telephone adding certain code number or test
number on the basis of test key apparatus developed by the concerned bank for its different
branches. The drawer and the payee is required to have account with the bank in order for this
transaction to take place. TT is issued against cash, check, letter of instruction etc.
Characteristics of T.T
Issued by one branch to other branch and message is tale-communicated.
Remittance/ transfer of money is done through tested tale-messages.
Remittance is affected on the basis of tested message.
Test key apparatus is required.
Charge is Tk.50
3.1.d:Mail Transfer(MT)
The facility of sending money by mail is available to customers who have accounts with the
bank. The remitter deposits the amount that will be transferred from the remitting branch with
small commission. An advice is issued by the branch to another branch for crediting the specified
amount to the account of the payee maintained with the bank. It is a non-negotiable instrument
and generally is not handed over to the customer rather sent through post office to the concerned
branch. Remittance of money by Mail Transfer is relatively cheaper, quite safer and more
convenient. Mail Transfer is effective not only within the country but also for international
remittances. For local MT (say within the area of Dhaka) special ‘MT Register Book’ is
maintained as in like DD. MT is normally issued from branch to branch of the same bank.
Normally the mail charge is tk.15 for any amount. From tk.1 to tk.20000 commission is tk.20
and for above tk.1 added for every tk.1000.
3.1.e:Security Deposit Receipt(SDR)

It is used only for tender, auction etc.
3.1.f:Pay Slip
Used internally

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3.2:Foreign Remittance:
Foreign remittance refers to the transfer of fund from one country to another either through the
office channel i.e. banking channel, Post office or the informal channel. In Bangladesh still
informal market is playing a significant role. However, we shall limit our discussion within the
official channel.
BASIC places an important role to transfer money from other countries to Bangladesh and
Bangladesh to other countries. Inward and outward T.T, M.T and draft are the main components
of foreign exchange remittance.
Foreign exchange earnings are very low as export earnings are very limited while import
spending are huge which makes the balance of trade position in a chronic deficit situation.
Foreign remittance is very important for the country as valuable foreign exchange is involved in
the transfer mechanism. From the year 1990, financial liberalization has been started which is
still going on. Due to liberalization, restrictions on foreign remittance become ease. Bangladeshi
Taka. is convertible for current account transactions on March 24, 1994 with the view to achieve
better exchange rate management system. And from April 1994 Bangladesh Government has
accepted the status of Article VIII of international monetary fund.
Foreign remittance has two wings i.e. inward and outward remittance.
Before discussing foreign inward remittance & outward remittance, I may discuss following
relevant topics in brief:
AD Branch:
Authorized dealer branches of the bank are those who are permitted by the Bangladesh
Bank to deal in foreign exchange business subject to the fulfillment of foreign exchange
rules & regulations of the country.

JANATA BANK LIMITED
Agency Arrangement:
To facilitate foreign exchange business throughout the world, agency arrangement may
be made between local bank and foreign bank. However, in case of agency arrangement
accounting relationship may or may not be made.
Drawing Arrangement:
Drawing arrangement is made to facilitate remittances through concluding accounting

relationship between a bank & corresponding bank or exchange house.
NOSTRO Account:
When a local bank maintains account in another bank in abroad.
VOSTRO Account:
When a foreign bank maintains account in local bank.
LORO Account:
When the third party maintains account is known as LORO account.
3.2.a: Foreign inward remittance

Foreign inward remittance refers to the currency remitted from abroad to
our country. Now I shall describe inward remittance
The remittance in foreign currency that receives from outside the country to our country is
known as foreign inward remittance. In case of inward remittance, TT/MT/Drafts etc. are drawn
in local bank by the foreign banks of exchange houses. When a local bank purchases foreign
bills, TCs & cash foreign currency is also known as inward remittance. A local bank also
receives indenting commission of local firm, trademarks, patent fee etc.
Inward remittance can be classified into two groups:

 Visible inward remittance such as export proceeds,
 Invisible inward remittance such as family maintenance, constancy fee etc.

JANATA BANK LIMITED
In the following manner inward remittance can be sent:

TT:
Telegraphic Transfer refers to the payment instruction by tested telex/cable or

authentically faxes in foreign bank on local bank. Normally foreign banks with whom
drawing arrangement or correspondent banking relationship prevail send Telegraphic
Transfer.
MT:
Mail transfer refers to payment in cash to the third party or for a credit to be used to the
account of the payee in the books of the agent.
FDD:
Foreign Demand drafts normally issued by the foreign bank/exchange company in local
bank.
Foreign Currency Notes:
Authorized dealers are permitted to purchase foreign currency, not
TC:
Issued Travelers cheques may be purchased by local bank.
Cover of Export:
Local banks receive export cover from foreign banks after negotiation of bill or in advance.
Problem faces in inward remittance:
 Required particulars of the beneficiary such as name of the beneficiary A/C

No. Or correct branch name may not be given in the TT.
 Further geniuses or signature of drafts may be forged.
In case of payment, sometimes branches of the bank may create certain problem: -
 Delay in making payment against remittance against remittance to the beneficiary.

 Without ascertaining genuinely, drafts may be paid.

JANATA BANK LIMITED
 Lack of timely response/communication against the queries of remitter/beneficiary.

 Credit TRV’s may not be timely sent to head office. Moreover particulars may not
be given in the TRV’s
Inward remittance may be cancelled if beneficiary is not available. If an inward remittance
already reported to B.B is cancelled either in full or in part become of non-availability of
beneficiary, the AD must report the cancellation of the remittance as an outward remittance on
TM form.
3.2.b:Foreign Outward Remittance
Foreign outward remittance refers to the remittances in foreign currency made from this country
to abroad. Foreign outward remittance includes issuance of TT, MT, FDD issued by local banks
on foreign banks. Further it includes rate of foreign currency, notes, TC’S, reimbursement
against import, bills retired etc. Forward outward remittance can be divided into two groups:
 Visible outward remittance such as payment against import.

 Invisible outward remittance such as membership fee, subscription fee etc.
Outward remittance can be made for traveling purpose, educational purpose, attending seminar
& workshop, medical treatment, business travel quota, evaluation fee, membership fee, visa fee,
pre-shipment fee, advertising of Bangladesh commodities etc. In case of purchase of foreign
currency, an applicant must be made to an AD and if necessary requires to Bangladesh Bank. For
payment against imports the prescribed application form is IMP form & for other types of
remittance TM form.
In the following manner outward remittance is made:

TT: Local banks can draw telegraphic transfer to those banks with which they have
accounting relationship & message should contain test & brief description of the
beneficiary.
FDD: Any authorized dealer branches can issue foreign drafts draw on the bank with
which they have an accounting relationship.
Foreign Currency, Notes: Authorized dealer branches are permitted to safe foreign
currency notes as per ceiling fixed by Bangladesh Bank.
TC: AD branches can sale Travelers cheques as per the ceiling fixed by Bangladesh
Bank.

JANATA BANK LIMITED
Reimbursement against Import: Local banks can reimburse funds against import
through their account.
In following outward remittance, authorized dealer branches do not require prior

permission of Bangladesh Bank:
 Profits: Foreign organization can freely remit their past tax profit to their
head office.
 Dividend/Capital gain: Dividend income to non residents dividend declared out of

previous years accumulated reserve & dividend & sales proceeds including capital
gain can be remitted.
 Salaries & Savings by expatriates: Approved expatriates working in Bangladesh

can remit 50% of salary & 100% of their salary.
 Technical/royalty fee: In the total fees & other expenses connected with
technology should not exceed, I) 6% of the previous years sales of the
enterprises as declared in their tax returns or II) 6% of cost of import machinery in

case of new projects subject to the BOI registration or approval.
 Training & Consultancy: For the purpose of training & consultancy services,
industrial enterprises may remit 1% of their sales as declared in their previous year’s
tax return.
 Shipping lines, airlines, courier services: They can remit their funds locally
collected towards freight & postage after the adjustment of local costs & taxes.
When quota is exhausted, special permission is required from Bangladesh Bank. On the basis of
sanction, AD branches will send outward remittance subject to the within valid time period.
When the authorization is signed by an official of Bangladesh Bank whose specimen signature
may not be available then such authorization should be presented to the nearest office of the
Foreign Exchange Policy Dept. of B.B the Ads should carry out the transactions on behalf of the
original applicant for whom the forms were approved.
Cancellation of MT/DD:

JANATA BANK LIMITED
Foreign remittance can be cancelled such as unutilized foreign currency against passport
endorsement or cancellation of locally issued foreign demand drafts etc. MT/DD may be
cancelled and payment against therein may be executed to the applicant only after observing all
the existing formalities. In this case Bangladesh Bank must be reported and the cancellation of
outward remittance will be considered as inward remittance.
Outward remittance can be reported in the following form:
Invisible payment schedule should be reported in schedule E-3/P-3 or schedule E-4/P-4

depending on Code No, from 0001 to 5999 & 6000 to 9999 respectively along with TM form.
When bank sales foreign currency to other banks then report should be done in schedule “G”. In
case of foreign currency sale reporting should be done in the schedule S-6 along with TM form.
In case of import, reporting should be done in the schedule E-2/P-2 along with IMP form.
All AD branches must sent statement of L/C commitment to their respective Head Office & after
consolidating all the figures by the Head Office; they must submit the figure to the Bangladesh
Bank.
For a country like Bangladesh, foreign remittance are valuable for which proper utilization is
needed & bank should act as a check & balance so that misappropriation of foreign remittance do
not happen.

JANATA BANK LIMITED
CHAPTER-4
Remittance Services
Operation

JANATA BANK LIMITED
Chapter-4
Remittance Services Operation
4.1 Introduction
Remittances of funds are one of the most important aspects of the commercial banks in rendering
services to its customers. Among various services rendered by the commercial bank to its
customers, remittance facilities are very well known and popular. The word ‘Remittance’ means
sending of money from one place to another place through post or telegraph. Banks extend this
facility to its customers by means of receiving money from one branch of the bank and making
agreement for payment to another branch within the country and outside the country.
Janata Bank's expertise in Banking Remittance Services has a record of in-house growth over
more than half a century. Its pioneer role in handling foreign trade and foreign exchange
transactions ever before independence of the country still remains unchallenged. With wide
network of branches at home and also a large number of correspondent banks worldwide it is
singularly handling the large volume of export-import business including homebound remittance.
4.2: Remittance activities of Janata bank limited

JANATA BANK LIMITED
Janata bank limited is well recognized for its Remittance Services operation in our country.
It plays its roles in Remittance in following modes:
 Domestic / Local Remittance
 Foreign Remittance
4.2.1:Domestic/Local Remittance operation of JBL:
4.2.1.A: Payment Order (PO):

Payment Order (PO) is an instrument that contains an order for payment to the payee only in the
case of local payment whether on behalf of the bank or its constituents. In the beginning stage,
PO was issued only to affect local payments of bank’s own obligations but at present it is also
issued to the customers. They purchase PO to deposit money. PO is in the form of receipt which
is signed by the two officials. The money of PO is deposited to the bank’s own account named
‘Payment Order A/C’. Payment of this instrument is made from the issuing branch. PO is not
transferable; therefore it can only be paid to-
 The payee on identification

 The payee’s banker who could certify that amount and credit that amount to the payee’s
A/C
 A person holding the letter of authority from the payee whose signature must be
authenticated by the payee.
For below tk.1000 the commission is tk.20 and for tk.1001 to tk.100,000 the commission charge
is tk.30 and for above tk.100,001 it will be tk.50.
Remittance Commission VAT (tk)

(tk)
DD 20 to 100 15%
MT 20 to 100 15%
TT 20 to 100 15%
4.2.1.A(a):Payment Order Issue/Collection:

JANATA BANK LIMITED
The pay order is an instrument issued by bank, instructing itself a certain amount of money
mentioned in the instrument taking amount of money and commission when it is presented in
bank. Only the branch of the bank that has issued it will make the payment of pay order.
4.2.1.A(b):Issuing of pay Order:
The procedures for issued a pay Order are as follows:

 Deposit money by the customer along with application form.
 Give necessary entry in the bills payable (pay Order) register where payee’s name, date,
PO no, etc is mentioned.
 Prepared the instrument.
 After scrutinizing and approval of the instrument by the authority, it is delivered to
customer Signature of customer is taken on the counterpart.
4.2.1.A(c):Different modes of Po when a customer can purchase;
By Cash
Cash A/C……………………………………………Dr
Bills payable (PO) A/C……………………………..Cr
Income on commission A/C……………………….Cr
BY account
Customer A/C………………………………………Dr
Bills payable A/C……………………………….......Cr
Income on commission A/C………………………..Cr
BY transfer

JANATA BANK LIMITED
JBL General /Other Dept Clients A/C……………Dr

Bills payable A/C…………………………………...Cr
Income on commission A/C………………………..Cr
PO A/C is the current liabilities of bank, which is acquired to be discharged by beneficiaries
against cash or through an account.
4.2.1.A(d):Settlement of a pay Order :
When Po submitted by collecting bank through clearing house, the issuing bank gives payment.
Bills payable (PO) A/C------------------------- Dr.
JBL General A/C ---------------------------- Cr.
But before giving payment it is duty for issuing to observe whether endorsement was given by
the collecting bank or not, then the instrument in dishonored and marking ‘Endorsement
required’.
4.2.1.A(e):Cancellation of a pay Order:
If a buyer wants to cancel it, he should submit a letter of instrument in this regard and also return
the instrument.
Accounting treatment: Adjustment entry wills be-
Bills payable (PO) A/C--------------------------- Dr.
Customer A/C---------------------------------------- Cr.
4.2.1.A(f):When pay Order is lost:
If the instrument is lost, the holder will inform to the issuing bank immediately. Bank will mark
‘stop payment’ on the Bills payable (PO) Register. Buyer will then ask for a new instrument by
submitting a GD copy, and indemnity bond. A new instrument will deliver.
4.2.1.B:Demand Draft (DD):
Demand Draft (DD) is an instruction payable on demand. It is a negotiable instrument issued by

the branch of a bank containing an order to another branch of the same bank to pay fixed sum
money to a certain person or order of demand. This instrument can be purchased by a customer
from a particular bank for himself and can be handed over to the purchaser for delivery to the
beneficiary. The payee or beneficiary will claim the amount of money in the instrument by
producing the same to the concerned paying branch. Demand draft may be paid in cash to the
payee on proper identification or the amount may be credited to his account (in case of A/C
holder of the bank). Banks issue draft for nominal commission. The commission depends upon

JANATA BANK LIMITED
the amount to be transmitted. The purchaser of the DD needs not to be a customer or account
holder of the bank.
4.2.1.B(a):Issuing of Demand Draft:
While issuing a DD, an official must be confirmed about the existence of the branch where
the DD is to be issued by the applicant or purchaser. Application on bank’s prescribed
form (F-117) for DD is duly filled and signed by the applicant. Thereafter, the applicant
will be asked to deposit the amount mentioned in the DD and exchange/commission
computed correctly at the prescribe rate. On receipt of cash, a voucher is passed and
scrolled by at least two officers. Then the DD is issued and recorded in the ‘DD Issue
Register’ filling the appropriate columns. The DD application is treated as credit voucher
of SBG A/C by showing credit entry against the paying branch. For any of DD issued, a
relative DD Advice is sent to paying branch where the Advice is converted into Voucher.
Jessore Main Branch charges tk.1.50 for per tk.1000 as its commission for DD. The
minimum commission is tk.15. The procedure of issuing a DD against cash could be
shown by the flow chart in the following ways-
Accept application/pay-in-slip signed by the purchaser
Calculate and take exchange charges
Take cash from the purchaser
Sign and hand over the DD
Send advice of drawing to paying branch
Flow Chart for DD issue against cash
Accounting entries will be-

JANATA BANK LIMITED
Customers Account------------------Dr
SBG Account-------------------------Cr
Income Account (Commission) ---Cr
4.2.1.B(b):Procedure of Demand Draft Payment:
After receiving the DD advices from different branches, the paying bank will verify the
genuineness of the advices by verifying test numbers and signatures. Beside this, payment of
drafts can be made without the advice of the issuing bank and at that time payment is called
‘Acceptance Payment’.
Total amount of advice is debited to SBG A/C and credited to draft payable A/C. That is-
SBG A/C------------------------Dr
Draft payable A/C -------------Cr
On production of DD by the beneficiary, payment will be made by the following ways-

Draft payable A/C---------------Dr
SBG A/C-------------------------Cr
If the payment is to be made before receiving of the DD advice, DD payment is recorded in the
Ex-advice payment register by debiting the Draft Payable Ex-advice A/C (DD paid without
advice). On receiving of the advice, it will be entered into the DD, MT Advice Receive Register
and the amount will be credited to Draft Payable A/C. Before making payment of the DD, the
paying branch will ascertain the genuineness of its issuance as well as genuineness of payee. The
following flow chart depicts the payment procedures of DD-
Receive money DD Presented
Sends Issuing
Paying
Branch Branch
Advice of Drawing
Issues DD Pays DD
Flow Chart for DD Payment
4.2.1.B(c):Cancellation of Demand Draft:

JANATA BANK LIMITED
In some cases, the purchaser of the bank draft may ask the issuing branch to return the amount of
DD stating its non-requirement. In these cases, the issuing branch will obtain a written
application from the purchaser whose signature must be tallied with the signature obtained
earlier. An amount of tk.25 be recovered from the purchaser as ‘Cancellation Charge’ and will be
credited to the Commission A/C. The purchaser will acknowledge receipt of the proceeds writing
the words ‘Received Payment by Cancellation’ and will sign on revenue stamp affixed on the
draft. In this case, payment is made by debiting the SBG A/C and a relative cancellation advice
is sent to the paying branch.
4.2.1.B(d):Issuing of Duplicate Demand Draft:
If DD is lost, the issuing branch may issue a duplicate DD. But before issuing a duplicate DD,
the branch issued to observe the followings-
 Verify purchaser’s signature on the DD application slip
 Take indemnity bond from purchaser
 Clearance from paying branch whether the DD is already paid or not to be obtained
 DD cancellation advice to be sent to the paying branch
 Lastly the duplicate DD is issued and the word ‘DUPLICATE’ in red ink is stamped in
the front side of the DD block.
4.2.1.C. Telegraphic Transfer (TT):
Telegraphic Transfer (TT) is another widely used mode for remittances of funds. TT is quicker
than DD or MT. If an applicant wants to remit the amount urgently to the payee in another city or
district he may request the issuing branch to send it by TT. For TT a branch sends a telegram
instead of airmail. The branch usually recovers from the telegram charges in addition to the usual
service charges. A TT could be express or ordinary and it is always sent in coded-form.
Corporate branch follows the following procedures in case of TT issuing-
1. The customer deposits money in the branch.
2. The customer obtains a cash memo containing TT serial number.
3. TT serial number, notifying party name are mentioned in the telex massage.
4. The telex department confirms transmission of the telex.
5. Accounting entries for TT:
6.
7.
8. Cash/Client’s account----------------------Dr
9. SBG account--------------------------------Cr
10. Income account (commission) -----------Cr
11.
12. Procedures for the incoming TT:
13. After receiving the telex, it is decoded at first. Then the TT serial number, test number
are verified. A credit voucher in favor of the beneficiary’s account is prepared and
passed.

JANATA BANK LIMITED
14.
15. For TT telephone charge is tk.25 and tk.1-20000 commission is tk.20 and above it tk.1
added as commission for each tk.1000. 15% vat taken on comission.
4.2.1.C(a):Accounting entries for TT:

Cash A/C Client’s A/C------------------- Dr.
JBL General A/C (------------) ---------Cr.
4.2.1.C(b):Procedures for the incoming TT:
After receiving the telex, it is authenticated by test. TT Serial number is verified by the Ò TT in-
concern branch” register. The following entries are given in the vouchers:
JBL General A/C (------------) --------------------Dr.
Client’s A/C------------------------------- Cr.
Tk.50/- is taken as postal charge. The minimum commission is Tk.50/-or 0.15% of the amount
whichever is higher.
4.2.1.C(c):Endorsements:
JBL endorses US$ in passports. To endorse US Dollar, the client has to apply in the prescribed
from (TM Form)
The following entries are given in this regard:
Cash or Customers’ A/C------------------------ Dr.
Foreign Currency on Hand (Dollar Special)-------- Cr.
4.2.1.D: Mail Transfer (MT):
The facility of sending money by mail is available to customers who have accounts with the
bank. The remitter deposits the amount that will be transferred from the remitting branch
with small commission. An advice is issued by the branch to another branch for crediting the
specified amount to the account of the payee maintained with the bank. It is a non-negotiable
instrument and generally is not handed over to the customer rather sent through post office to
the concerned branch. Remittance of money by Mail Transfer is relatively cheaper, quite
safer and more convenient. Mail Transfer is effective not only within the country but also for
international remittances. For local MT (say within the area of Dhaka) special ‘MT Register
Book’ is maintained as in like DD. MT is normally issued from branch to branch of the same
bank. Normally the mail charge is tk.15 for any amount. From tk.1 to tk.20000 commission is
tk.20 and for above tk.1 added for every tk.1000.
The payment procedures for MT are as follows-

JANATA BANK LIMITED
1. MT is received directly from the issuing branch by post and the payee does not
present it for payment.
2. The paying branch checks the name and account number of the payee in MT to
determine whether it agrees with the name and account number maintained in the
paying branch.
3. The paying branch verifies the signatures of the authorized officials of the issuing
branch.
4. MT is entered in the ‘DD, MT, TT Payment Register’.
5. No commission is deducted.
6. If everything related to MT is correct then the passing officer will pass the MT by
putting signature on it and the voucher is credited to the respective beneficiary’s
account.
4.2.1.E.Security Deposit Receipt (SDR)

It is used only for tender, auction etc.
4.2.1.F.Pay Slip:
Used internally
4.2.2:Foreign Remittance operation of JBL:
4.2.2.A: Foreign remittance

Remittance is the sending of money etc. to a distance. Foreign remittance is the sums of foreign
currency to a distance from one place another place i.e. country to country. The person who is
the receiver of the remittance is remittee. The person who is the sender of the remittance is
remitter or remiitor. Inward foreign remittance through Janata Bank Ltd. up to December 2011
was Tk. 72,284.70 million. in 2010 it was TK 52,639.70 millions. Anybody willing to remit
foreign currency from any corner of the world can use wide network of the bank. The remittance
reaches to the beneficiary within 3 days without charging any commission. Their worldwide
network includes 4 branches in UAE, 2 exchange houses in Italy and correspondent relationship
with all the major Banks and all important trade centers of the world.
Recently Janata Bank Ltd. has launched its Speedy Foreign Remittance Payment System
which enables beneficiaries to receive their money within shortest possible time. The beneficiary
also gets information of remittance through automated SMS. It’s a secured, easy, cost effective
and speedy way of remittance for the remitter.

JANATA BANK LIMITED
Janata bank Ltd. has signed an agreement with Western Union Network to facilitate wide range
of remittance of the globe. Both the organizations make it possible to receive the money from
about 300,000 locations of 200 countries instantly with prevailing mutual mechanism and
workforce.
The Remittance Process Involves the Following Four Modes:
Sell Banks sell Dollar/Pound for using in abroad by the

purchaser. The maximum amount of such sell is
Cash
mentioned in the Bangladesh Bank publication of
Remittance
“Convertibility of Taka for Currency Transactions in
Bangladesh”.
Purchase/ Bank can purchase dollar from resident and non-
Dollar/ sell resident Bangladeshi and Foreigner. Most dollars
Pound purchased comes from realization of Export Bill of
Exchange.
Issue of TC is useful to traveler abroad. Customers can encash
TC the TC in abroad from the drawee bank. TC is
alternative to holding cash and it provides better
security than holding cash in hand.
Buying of If any unused leaf of TC is surrendered bank buys it
Traveler's
TC from the customer. All payments are made in local
Cheque (TC)
currency. Banks generally buy only those TC.
TC for This bank for collection receives unused leaves of
collection traveler's cheque issued by another banks. Generally it
takes 21 days for collection and customer can draw
cash after one month.
Outward It remits fund by tested TT via its foreign
TT correspondence bank in which it is maintaining its
Telex NOSTRO Account.
Transfer Incoming It also makes payment according to telegraphic
TT message of its foreign correspondence bank from the
corresponding VOSTRO Account.
Foreign Bank issue Demand Draft in favor of purchaser or any other
Demand according to instruction of purchaser. The payee can collect it for the
Draft drawee bank in which the Issuing bank of Demand Draft holds its
NOSTRO Account. Bank also makes payment on DD drawn on this
bank by its foreign correspondence bank through the VOSTRO
Account.

JANATA BANK LIMITED
4.2.2.A(a): Foreign inward remittance

The remittance of freely convertible foreign currencies which Janata Bank Limited Foreign
Exchange Corporate branch is receiving from abroad against which the authorized dealers
making payment in local currency to the beneficiaries may be termed as foreign inward
remittance.
Mode of inward remittances:
The term inward remittances includes not only remittances by TT., MT., Drafts etc. but also
purchases of bills, purchases of drafts under travelers letter of credit and purchases of travelers
cheques. Foreign currency notes against which payment is made to the beneficiary also a part of
inward remittances. Thus the following are the Mode of inward remittances:
 TT: Telegraphic Transfer.
 MT.: Mail Transfer.
 FD: Foreign Drafts.
 TC: Travelers Cheque.
 Foreign currency notes.
About” Form-C":
The authorized dealer should obtain 'Form - C' from the beneficiary to know the purpose of the
remittances in all cases and they are to submit the "Form - C' to Bangladesh Bank along with the
monthly returns where the proceeds of the remittances is TK. 5000/= & above.’Form - C' is a
prescribed declaration form & this 'Form -C' is to be filled up and signed by the beneficiary
himself.
Payment procedure of T.T.:
 To verify the 'test number'.
 To inform the beneficiary for submission of "Form - C".
 To confirm from issuing bank or reimbursing bank.
 To covert of foreign currency into Bangladesh currency with T.T.
 To make entry in T.T.s, drafts, M.T.s, received registration.
 To prepare vouchers.
 To prepare FET schedule.

JANATA BANK LIMITED
Payment of foreign currency notes:

 To check the custom declaration (if any).
 To made entry in raw register.
 To convert foreign currency into Bangladesh currency.
 To prepare vouchers.
 No FET schedule is required to be prepared & sent to head office because in this
case there is no transaction with head office.
Reporting to Bangladesh Bank:
 On the last working day of each month the transaction during the month to be
reported to Bangladesh Bank through the following schedule:
 Schedule -J-l / 0-3 for TK. 5000 & above.
 Inward remittance voucher-1/04 for below TK. 5000.
Country wise inward remittance of JBL, Shyamoly corporate branch (Dec 13-Jan 14)
December 2013 January 2014
Country name No of remittance TK No of remittance TK
Amount(thousands) Amount(thousands)
Saudi Arab 12 665 14 825
Kyat 9 222 8 306
UAE 14 767 15 483
Italy 10 310 2 44
USA 4 288 2 71
Singapore 4 187 6 97
UK 1 100 1 10
Malaysia 13 447 15 514
Katar 1 180
Oman 3 126
Austria 2 20
Jarman 1 40
Baharain 1 12
Canada 2 40
Total 3292 2462
Source: official records

JANATA BANK LIMITED
CHAPTER-5
FINDINGS
RECOMMENDATIONS AND
CONCLUSION

JANATA BANK LIMITED
Chapter-5
Findings, Recommendations & conclusion
5.1: Findings
The findings obtained from the study on Remittance of Janata Bank Limited are follows:
 With wide network of branches at home and also a large number of correspondent banks
worldwide it is singularly handling the larger volume of export-import business including
homebound remittances.
 The Net Profit of the Bank for the year 2010 was Tk. 4,907,974,833as against Tk.
4,444,908,801 in 2011.
 Janata bank training academy provides training facilities to its medium and junior level
officers of the bank and also provides executive development and internship program.
 Most of the activities of the Shyamoly branch are computerized. But in some desk Paper-
based works are still in existence.
 It is a leading bank of Bangladesh but it has no attractive appearance in its official
environment.
 All the employees are not loyal to the organization, so they are not focused on the
customer satisfaction, where customers are the life of the banks.
 Sometimes inefficient allocations of resources have created a huge amount of bad debt.
 Unstable policy of the government due to political changes over time.
 High educated personnel are in the management.
 If bank make the procedure of keeping up-to-date information but in some cases there
some case of rescheduling the total procedure is reversed so it’s high to maintain current
and updated system of Management and Accounting.
 Lack of help of various departments among themselves.
 Lack of motivation and team speed
 Lack of proper allocation of Human Resources
 Very few use of latest technology and permanent IT specialist.
 Though JBL helps in financial condition, it helps in various social, cultural development
of the country.

JANATA BANK LIMITED
5.2: Recommendations
Bank is a service oriented organization. Its business profit depends on its service quality. That is
why the authority always should be aware about this service quality and performance as service
quality can lead to increase customer satisfaction, and thus can contribute significantly to the
performance. Moreover, the customer service quality is consequently indispensible in this aspect.
As an internee of Janata Bank Limited I have some recommendations. These are:
 The Bank should develop an effective database needed for analyzing Remittance.
 The Bank should develop branch wise Online facilities.
 For customer's convenience, Janata Bank Limited should provide more personnel to
deliver faster services to the customers.
 Proper communication system and maintenance of files & machineries like phone,
computer, fax, and photocopier need to be ensured.
 To ensure error free faster services, the bank should be fully computerized and should
provide online banking facility.
 Office should be fully decorated to attract clients to take its services.
 More employees are to recruit. For the better service, training is must and according to
the skill and education background of employee needs to be positioned.
 The Bank should absolutely maintain on its own rules and procedures.
 The Bank should introduce reward system for good borrowers as well as punishment for
bad borrowers.
 The Bank should increase the promptness of services.
 The Bank should act without any kind of political influence.

JANATA BANK LIMITED
5.3: Conclusion
The Banking area in recent time is one of the most competitive business fields in Bangladesh. As
Bangladesh is a developing country, a strong banking sector can change the socio economic
structure of the country. So we can say, the whole economy of the country in linked up with its
banking system. There are 58 banks in Bangladesh in which 47 are indigenous commercial
Banks. Janata Bank Limited is the second largest commercial Bank of Bangladesh. This bank
performs hundreds of important activities both for the public and for the government as a whole.
It has an outstanding bearing to thrive our business sector. It has strong performance on General
Banking, Loans & Advances, Remittance ,Industrial credit and foreign Exchange. I had the
privilege to learn many things from the Remittance Corporate Branch through my active
involvement in this branch.
.

JANATA BANK LIMITED
References
 Annual Report of Janata Bank Limited (Published-2013)
 Various Official Records of Shyamoly corporate branch, JBL.
 L.R.Chowdhury (2000) -- A Text book on Foreign Exchange 1st edition
 Chowdhury, Dr. T.A -- An Overview of Banks and Their Services
 Reading Materials on Theory & Practice of Banking
 Gordon, E & Natarajan, K (1996) -- Banking: Theory, Law & Practice, Himalaya
Publishing House, Mumbai,
 www.janatabank-bd.com
 www.bb.org.bd
 www.boi.gov.bd
 www.bangladesh-bank.org
 bdlaws.minlaw.gov.bd

JANATA BANK LIMITED
Acronyms & abbreviations used in this report
BB Bangladesh bank
BBLC Back-to-back L/C
CCI&E Chief controller of import & export
DD Demand draft
EFT Electric fund transfer
ERC Export registration certificate
EXP Export Authorization. Monitoring by
export import burro & also
Bangladesh Bank
FAQ Frequently asked question
FDBP Foreign documentary bill purchase
IMP Import authorization - dealer for
foreign exchange licensed by
Bangladesh Bank.
IRC Import registration certificate
JBL Janata bank limited
LCAF L/C authorization form
MT Mail transfer
SWIFT Society for worldwide interbank
financial telecommunication
TT Telegraphic transfer

Janata Bank Remittance Services

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JANATA BANK LIMITED

FOREIGN & DOMESTIC REMITTANCE Page 1

2.9:Values of Janata Bank Ltd:…………………...............................................18

Chapter Page no.

Chapter Page no.

FOREIGN & DOMESTIC REMITTANCE Page 2

4.2.1.A(a): Payment Order Issue/Collection :...................................................35

4.2.2.: Foreign Remittance operation of JBL.....................................................41

FOREIGN & DOMESTIC REMITTANCE Page 3

Chapter Page no.

FOREIGN & DOMESTIC REMITTANCE Page 4

FOREIGN & DOMESTIC REMITTANCE Page 5

1.1: Internship Responsibilities:

FOREIGN & DOMESTIC REMITTANCE Page 6

1.2: Objectives of the study:

FOREIGN & DOMESTIC REMITTANCE Page 7

1.3: Methodology of the study:

1.4: Sources of data:

 1.4.1 Primary Data:

FOREIGN & DOMESTIC REMITTANCE Page 8

 Annual Report of JBL

1.5: Scope of the study:

1.6: Importance of the study:

Basically, this study is conducted to unearth The Performance of General Baking&

FOREIGN & DOMESTIC REMITTANCE Page 9

1.7: Limitations of the study:

FOREIGN & DOMESTIC REMITTANCE Page 10

Janata Bank Limited

FOREIGN & DOMESTIC REMITTANCE Page 11

2.1: Historical Background of JBL:

FOREIGN & DOMESTIC REMITTANCE Page 12

2.2:Corporate Profile of JBL:

CEO & Managing Director : S.M. Aminur Rahman

Legal Status : Public Limited Company

Genesis : Emerged as Nationalized Commercial

Registered Office : Janata bhaban 110, Motijheel Commercial

Authorized Capital : Tk. 20000 million (appr. US$ 289.85 millions)

Paid up Capital : Tk. 5000.00 million,

Board of Director : 15 person

Total Employee : About 15000

Reserve : Tk.10823.00 million

Total asset : Tk. 282423.00 million (as on 30th Nov 2011)

Number of Branches : 877 br. including 4 overseas branches at U.A.E

Phone Number : 9551337, 9565384, 9567675, 9560000,

FOREIGN & DOMESTIC REMITTANCE Page 13

International Award -"World's Best Bank Award-2009 in Bangladesh

International Award -"World's Best Bank Award-2008 in Bangladesh

International Award -"World's Best Bank Award-2007 in Bangladesh

International Award -"World's Best Bank Award-2006 in Bangladesh

International Award -The Bank of the Year-2004 in Bangladesh

Janata Bank Limited gets “The Banker Award-2003”

International Award-The Bank of the Year-2002

International Award-The Bank of the Year-2001

2.4: Mission and vision of Janata Bank Limited:

FOREIGN & DOMESTIC REMITTANCE Page 14

2.5: Corporate values of Janata Bank Limited:

FOREIGN & DOMESTIC REMITTANCE Page 15

Bank’s own Recruitment Committee. Janata Bank Limited Management Hierarchy:

Managing Directors (MD)

Deputy Managing Director (DMD

General Manager (GM)

Deputy General Manager (DGM)

Assistant General Manager (AGM)