6.1 Foreign Remittance:
Remittance means sending of fund from one place to another place, When fund in transferred to or received from foreign country it is called foreign remittance. The word Foreign Remittance means sending/ transferring of fund through a bank from one place to another between two countries. ―Foreign Remittance‖ means purchase and sale of freely convertible foreign currencies as admissible by ―Foreign Exchange Regulations Act-1947‖ and
―Guidelines for Foreign Exchange Transaction – VOL. 1&2‖ of the country. Purchase of foreign currencies constitutes inward foreign remittance and sale of foreign currencies constitutes outward foreign remittance.
The transactions of the Authorized Dealer in foreign Exchange involve either outward or inward remittances of foreign exchange from one country to another. In cover of the remittances, the authorized Dealer makes sales and purchases of equivalent foreign currencies on spot or forward basis. The sale involves exchange of foreign currency of home currency i.e. conversion of home currency into foreign currency and the purchase involves exchange of home currency of foreign currency i.e. conversion of foreign currency into home currency.
6.2 Modes of Foreign Remittances:
The remittance process involves the following four modes:
1. Cash Remittance: The bank sells dollar/pound for using the abroad by purchaser. The maximum amount of such sell is mentioned in the Bangladesh bank publication of
"Convertibility of Taka for current transactions In Bangladesh". They can purchase dollar from resident and nonresident Bangladeshi or foreigner. Most dollars purchased cones from realization of Export Bill of Exchange.
2. Traveler's Cheque: Traveler's cheques are useful to persons, who frequently traveled abroad this bank issue Traveler's cheque of AMEX. Customers can en-cash the TC in abroad from the drawer‘s bank. Customers buy TC for use in abroad. But some leave may be remained unused. The customer can surrender these unused leaves against payment of equivalent amount. Generally it takes 21 days for collection of TC and customers can draw cash after one month.
3. Telex Transfer: Bank also remit fund by tested telegraphic massage via its foreign correspondence bank in which it is maintaining its NOSTRO account. In the same manner, it makes payment according to telegraphic massages of its foreign correspondence bank from the corresponding VOSTRO account.
4. Foreign Demand Draft: Bank issues demand draft in favor of purchaser or any other according to instruction of purchaser. The payee can collect it for- the drawer bank is which the issuing bank of demand draft holds it NOSTRO account. Bank also makes
payment on DD drawn on this bank by its foreign correspondence bank through the VOSTRO account.
5. M.T (Mail Transfer):M.T is an instrument issued by a remitting bank to the paying bank advising in writing to make payment of certain amount to specific beneficiary.
6. D.D (Demand Draft): A demand draft is a negotiable instrument issued by a bank drawn on other bank with the instruction to pay a certain amount to beneficiary on demand.
6.3 Types of Foreign Remittance:
There are two types of foreign remittances. These are:
1. Inward Remittance: Inward remittance refers to the extent where by bank makes payment to the client against foreign demand draft. They will make payment to the client by verifying the, test number, and signature of the authorized officer. The bank makes payment immediately if the amount is less than Tk. 100000. If the amount exceeds Tk. 100000 it must wait to get the credit advice from the issuing bank.
Inward Remittances include the TT, FDD, purchase of bills and drafts under L/C, purchase of foreign currency, etc. But the most significant amount in the inward remittances of NCC Bank Limited is the remittances from wage earners. The bank maintains proper records of ail inward remittances and provides particulars as required by the Exchange Policy Department of Bangladesh Bank in Returns.
2.
Outward Remittance: The remittances in foreign currency which are being made from our country to abroad is known as foreign outward remittances. Outward remittances comprise remittance on account of imports and private remittance on sundry items, sale of traveler‘s cheques, currency notes and coins etc. The outward remittances include M.T, Draft, sale of Foreign Exchange under L/C and against Import Bills, etc .To facilitate foreign exchange transaction and each bank maintains accounts with foreign banks in principal financial centers. NCC Bank also have NOSTRO Accounts for dollar payments and other currency accounts for payment in currencies like pound, yen, rupee , etc, The Bank has a list of foreign correspondents and arrangements with their agencies in Bangladesh.Foreign Remittance
Inward
Remittance Outward
Remittance
6.4 Purposes of Foreign Remittance:
Family maintenance.
Indenting commission.
Recruiting Agents commission.
Realization of export proceeds.
Export brokers commission etc.
Payment of import bills.
Remittances of freight and passage.
Agency commissions for handling vessels.
Operation expenses of Bangladesh Shipping Corporation and Bangladesh Biman.
Charter of foreign ships and aircrafts.
Export claims.
Opening of branches or subsidiary companies abroad.
Remittances of dividends of joint venture enterprises to foreign collaborators of EPZ.
6.5 NCC Bank Remittance Sending Partners:
Sl No Product Name Transaction Type
1 Money Gram, USA (Worldwide) Online (Cash)
2 (i). U A E Exchange Centre LLC (DD), UAE (ii). U A E Exchange Centre LLC (EFT),UAE
Account Transfer
(ii). Habib Qatar (Habib Express), Qatar
Account Transfer Online (Cash)
6 Wall Street Exchange, UAE Account Transfer
7 Instant Cash World Wide, UAE Online (Cash)
8 (i). Al Farhan Ex. Centre LLC (TT), Qatar (ii). Al Farhan Ex. Centre LLC (Cash), Qatar
Account Transfer Online (Cash)
9 First Solution, UK Account Transfer
10 Kaymaks, UK Account Transfer
11 Tele Money (Arab Normal Bank), KSA Account Transfer
12 Dhaka Janata, Italy Account Transfer
13 National Exchange Co. Srl, Italy Account Transfer
14 Federal Exchange, UAE Account Transfer
15 Zeni Exchange (Turo Cash), Bahrain Online (Cash)
16 Majan Exchange, Oman Account Transfer
17 Three Star Remittance, Malaysia Online (Cash)
18 Itua Unibanco, Tokyo Branch, Japan Account Transfer
19 Unicredito Italiano, Italy Account Transfer
20 IME (M) SDN. BHD. Malaysia Online (Cash)
21 Al Zaman Exchange, Doha, Qatar Account Transfer
22 Al Mulla International Ex. Co., Kuwait Account Transfer 23 Transmit International inc., USA Account Transfer