Remittance Classification
Subject: Economics | Topics:


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-


 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


 Family maintenance Draft

 Export proceeds

 Foreign investment


 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 


Related Economics Paper:

Popular Economics Paper:

Report on Economic Development in Bangladesh

Introduction The major objectives of planned development have been increased national income, rural development, self-sufficiency in food, and increased industrial production. However, progress in achieving development goals has been slow. Political turmoil and untamed natural hazards of cyclone .....

Report on The Contribution of Garments Industries in Bangladesh Economy

INTRODUCTION The shift from a rural/agro based economy to an urban/industrial economy is an essential part of the process of economic development. Although policymakers in the least developed countries (LDCs) have, at various times, attempted to make agriculture the primary engine of economic gro.....


E-commerce Concept E-commerce is a narrower part of e-business dealing with the purchase and sale of goods and services over the internet, including support activities such as marketing and customer support. The ability to made transaction for personal or professional use over the internet is kno.....

Assignment on Rostows Development Model and Bangladesh

Rostows Development model Creator: Walt Whitman Rostow 1916-2003 was an American economist who proposed his five stage model of development in the 1950’s, the ideas of which stemmed from modern free trade and Adam Smith. Rostow’s model does not deny John Maynard Keynes in that it allows for a.....

Assignment on Bangladesh Economy: The Challenges and Prospects

Bangladesh is an agricultural country. With some three-fifths of the population engaged in farming. Jute and tea are principal sources of foreign exchange. Major impediments to growth include frequent cyclones and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly .....