Remittance Classification
Subject: Economics | Topics:

Remittance

Remittance means sum of money remitted from one place to another. We send money from one place to another through post office, Banks etc. When money is transferred from one country to another then it is called foreign remittance. BASIC Bank has set the highest priority to mobilize inward foreign remittance of Non-Resident Bangladeshi Nationals (NRB) living and working in different parts of the world. They are remittance service is Easy, Fast and Secured.

Remittance means transfer of money/funds from one place to another. Money fund goes comes from one place to another through post office, Bank, etc.

Types of Remittance

 Inward Remittance

 Outward Remittance

Inward: Inward remittance means remittance received from foreign countries or abroad.
Outward: When foreign currency transferred from home country to other country them it is called foreign outward remittance.

Instrument of Remittance-

 Cash

 TC (Travelers Cheque)

 FDD (Foreign Demand Draft)

 TT (Telegraphic transfer)

 MI (Mail Transfer)

 PO (Payment Order)

 IMO (International money order)

 Cheque etc.

Foreign currency A/Cs under WES which plays a vital role on our all foreign exchange are opened by Bangladesh Nationals serving and earning abroad having income from sources other than Bangladesh (FCAD, FCAP, PC AY, RCADM). It is noted that current A/C also plays a vital role in foreign business.

Upon approach by the PLS A/C holder the respective A/C is opened by A/D
amongst others as under-

 Filling properly the relative A/C opening form.

 Obtaining declaration

 Copy of passport- 1 st 7 pages i-e- upto visa (original PP to produce)

 Service contract.

 Letter of authority

 3 PP size photos of the A/C holder

 1 PP size Photos of the nominee

 Signature cards due and both A/C holder and nominee etc.

 Foreign Remittance (Inward)

Inward remittance coining in to our country from other countries financed by the purchases of freely convertible foreign countries by A/D defeat to non Resident Thana A/Cs of foreign banks.

Purposes of Inward Remittance

 Indenting commission

 Donation

 Family maintenance Draft

 Export proceeds

 Foreign investment

 Others.

 Foreign Remittance (Outward)

When foreign Currency transferred from home country to other it is called foreign outward remittance. Generally it includes all the remittance of invisible items: in broad sense it also includes the remittances against visible items.

On March 24, 2004 Bangladeshi Taka was declared convertible for current account international transaction. As a result remittance becomes more liberalized.

Outward remittance include sale of Foreign Currency by T.T, M.T, Draft, T.C or in cash for private, official and commercial purpose.

  Instrument of Outward Remittance

 Cash (say US Dollar, Stg. SRL etc.)

 TC (Say US Dollar, Stg. SRL etc.)

 T.T (Telegraphic transfer or cable transfer).

 M.T (Mail Transfer).

 P.0 (Payment Order).

 I.M.O (International Money Order).

 Cheque etc.

 Papers/ document to be obtained for out ward remittance

 For Import Imp. Form duly signed.

 Oilier than import T/M from to be filled in.

 Permission from Bangladesh Bank if and when required.

 Papers regarding on casement when issued foreign travels.

 Declaration signed by the applicant in case of issuance or foreign currency for membership,   fees   for   application,   registration,   admission   examination (TOFEEL, SAT etc.)

Remittance and Fund Transfer

 Foreign Currency Account

 FC Accounts of Overseas Bangladesh Nationals

 Resident Foreign Currency Deposit Account

 Non Resident Foreign Currency Deposit Account

 Non Resident Taka Account

 Non- resident Investor’s Taka Account 

Remittance

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