OPERATION OF FOREIGN REMITTANCE
IN NBL KAWRAN BAZAR BRANCH
4.1 FOREIGN EXCHANGE:
Foreign Exchange Department is the international department of a bank. It deals globally. It facilities international trade through the various modes of services it possess. If the branch is an authorized dealer in foreign exchange market, it can remit foreign exchange from home country to foreign countries. The department mainly deals with foreign currencies. Hence it is called foreign exchange department. The department brides with the export, import and foreign remittance. Following flow chart depicts the multifarious functions usually done by the FED.
Chart: multifarious functions usually done by the FED
4.2 FOREIGN REMITTENCE
The transfer of any funds across national boundaries. Foreign remittance means purchase and sale of freely convertible foreign currencies as admissible under Exchange Control Regulations of the country. Purchase of foreign currencies constitutes inward foreign remittance and sale of foreign currencies constitutes outward foreign remittance. 4.2.1 Types of Foreign Remittance:
There are two types of Foreign Remittance:
Foreign Inward Remittance
Foreign Outward Remittance
220.127.116.11Foreign Inward Remittance
Purchase of foreign currencies constitutes inward foreign remittance. For different use bank can purchase foreign currency such as endorsements. 18.104.22.168 Foreign Outward Remittance
Sale of foreign currencies constitutes outward foreign remittance. When bank sale the foreign currency to its customer or clients then it called outward foreign remittance. Such as FDD, TT etc. 4.2.2 Activities in foreign remittance in:
The Foreign Remittance department of National Bank Limited Ka wran Bazar Branch is equipped with a number of foreign remittance facilities. Following are the types of foreign remittance facilities offered by National Bank Limited Kawran Bazar Branch. Issuance of Foreign Demand Draft (F.D.D)
Issuance of travelers Cheques (T.C)
Issuance of foreign T.T (Telegraphic Transfer)
Disbursement of the cash of incoming F.T.T.
Collection of F.D.D.
Following flow chart depicts the multifarious functions usually done by the foreign remittance in NBL Kawran Bazar Branch:
Chart: different function of foreign remittance
4.3 FOREIGN REMITTENCE ACTIVITIES NBL:
As a part of the foreign exchange operation, foreign remittance activities play a vital role in any commercial bank. Because both export and import’s finally job is to being ( Inward Remittance) or pay (Outward Remittance) foreign currency, which is one of the major functions of this department. In an essence the sale and purchase of foreign currencies. 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 in to home currency. Table-5 Last six Months Inward and Outward Remittance Flow in Kawran Bazar Branch:
Figure: 3 Last six Months Inward and Outward Remittance
From the above graph we can easily see that there are many up and downs in the Inward and outward curve. This is happened due to the world financial recession many wage earners become panicked and they send their savings to the country during November and arise in January and now the situation is quite steady. And in the December due to enough dollar endorsement and many students went to abroad for higher study which causes rise in the outward curve. Chart: 8 Inward and Outward percentage
The above figure shows the total inward and outward remittance of last six months and we can see that outward remittance is 23% of the total of inward remittance. 4.3.1 F/C ACCONT OPENING AND MAINTANANCE:
In Kawran Bazar...