Remittance is the best mediums to transfer funds from one place to another. This function eliminates the individual difficulties and the hazards in transformation of physica1 cash from one place to another.
Peop1e can send their money from outside or within the country. According to that we can divide the remittance into two categories:
Transferring money among the country is called local remittance. In NCCBL, they provides following services:
Pay order is a document of money. It would be released from that bank where it is issued a P.O. request may come for different purpose such as from any department, normal cash remittance etc.
|Range (Tk.)||Commission + VAT|
(Commission @ 15%)
Some time it may happened that issuer cannot release their P.O. then on behalf of them bank do it and charge Tk. 30/- as cancellation charge.
A bank draft is an unconditional order issued by one branch of a bank to it’s another branch or to another bank to pay a certain sum of money to the named person or 3rder on demand.
Bank will do IBCA (Inter branch credit advice) when clearing bank is under clearing house. If it is outside clearing house issuing bank of DD have to do OBC (Outward bills collection).
1.Procedure of DD: DD processing from one branch to another branch of same bank will maintained the following steps:
|Remitter submits application to|
|Issuing branch prepares DD|
|Issuing branch gives DD to|
|Payee presents DD to (paying)|
|Paying branch pays the amount|
|Purchaser sends DD to payee|
Suppose party has an a/c in NCCB Rangpur Br. From there s/he issue a DD, party has another a/c in Agrani bank Motijheel Br. Issuing bank has another branch in Motijheel they will send an IBCA/OBC to that branch. Client will deposit DD block ~ Agrani bank through clearing house it will be received by NCC bank Motijheel Br. They will process it and credit client a/c in Agrani bank.
Sending process of DD:
Receiving process of DD:
If the draft is not crossed, the payee can draw amount in cash upon presentation of the same to the drawer branch with satisfactory evidence of his identity or can draw the money by depositing it to his account there or any other banker.
Cancellation of DD:
The purchaser of a DD reserves the right to claim the amount until it is handed over to the payee or endorsed in favor of any other person. Hence a purchaser may return the draft to the issuing bank with a request to cancel it and refund him the amount of the draft. In such a case, the following formalities are to be observed:
Observing all the formalities, the issuing branch will cancel the DD and refund the amount to the purchaser either in cash or through an account. The exchange amount recovered from the purchaser while issuing a DD is never refunded during cancellation. Rather an additional amount (Tk.30/-) is further recovered as cancel1ation charge.
While canceling a DD the banker must write the word “cancelled” on the DD along with the date of cancellation and the signature of the issuing official on the DD are not destroyed.
This all activities are completed in General Banking in every bank.