CHAPTER THREE: REMITTANCE

Chapter-3

Chapter Three: Remittance

3.1 Remittance & Remittance Arrangement

3.2 Remittance Process of NCCBL

20
CHAPTER THREE: REMITTANCE

3.1 Remittance & Remittance Arrangement

Remittance
Remittance is the process of sending money to remove an obligation. This is most often
done through an electronic network, wire transfer or mail. The term also refers to the
amount of money being sent to remove the obligation. When a person sends a check to the
government to pay for a tax bill, the check is remittance to remove the tax obligation. If you
were to send money to a friend in Europe through a wire-transfer service, the sum of the
payment is the remittance or foreign Remittance. Remittances are transfers of money by
foreign workers to their home countries. Online Remittance is the process of sending money
or transferring using the Internet, and is usually done by an expert back to his/her home
country. According to the World Bank, remittances are an important source of income for
the receiving country, usually developing and emerging market countries.

Remittance Arrangement:

Bangladesh Bank permits banks in Bangladesh to establish drawing arrangements with

foreign banks and Exchange houses for facilitating remittance by Bangladeshi nationals
living abroad. Persons willing to remit their earnings through official channels can buy
either Taka draft or US dollar draft from these foreign banks and Exchange houses having
drawing arrangements with different banks in Bangladesh. Bangladeshi nationals living
abroad can send Foreign Exchange very easily and directly to their own bank accounts
maintained in Bangladesh or to their nominated person's / relative's bank accounts in
Bangladesh.
Furthermore, recently banks have taken some major steps towards crediting the proceeds of
remittances to the beneficiary's account promptly, maximum by 3 (three) days.
The following Foreign Banks, Exchange Houses and Subsidiaries / Overseas Branches
of Bangladeshi Scheduled Banks have drawing arrangements / remittance facilities with
different banks in Bangladesh. Remittance comes from the following countries through
different bank:
Australia, Bahrain, Brunei, Canada, France, Greece, Hongkong, Italy, K.S.A., Kuwait,
Malaysia, Oman, Qatar, South.Korea, Singapore, Spain, Srilanka, Switzerland, U.A.E, U.K,
U.S.A.

21
CHAPTER THREE: REMITTANCE

3.2 Remittance Process of NCCBL

Foreign exchange remittance takes place in NCCBL, as in other commercial banks, in two
forms:

1. Outward Remittance and

2. Inward Remittance.

1. Outward Remittance
Outward Remittances may be offered under open general permission or under specific
sanction from Bangladesh Bank. Application is required for this remittance to the
Bangladesh Bank’s IMP, TM forms. Application for remittances against import is to be
made on IMP form, for travel on TM form and for miscellaneous changes on TM form. As
per Exchange Control Regulation a traveler can’t take a draft along with him under official
rate of exchange. An Outward Remittances can be affected either under Wage Earner’s
Scheme or at rate depending on the kind of sanction. The procedures of Outward
Remittances of NCCBL are as follows:

1) Most outward remittances are approved by the Ads, on behalf of the Bangladesh
Bank following declaration of Taka as convertible for current accounts payments
from March 1994. Only a few remittances of special nature require Bangladesh
Bank's prior approval.

2) All remittances from Bangladesh to a foreign country or local Currency credited to

on resident Taka accounts of foreign banks or Convertible Taka account constitute
outward remittances of foreign Exchange. Ads must exercise utmost caution to
ensure that foreign currencies remitted or released by them are used only for the
purposes for which they are released; they should also maintain proper records for
submission of returns to Bangladesh Bank as also for the latter’s inspection from
time to time.

22
CHAPTER THREE: REMITTANCE

3) In all cases of purchase of foreign currency an application must be made to an AD

and, wherever necessary to Bangladesh Bank. For Payments against imports into
Bangladesh, the prescribed application form is form IMP and for other types of
remittances form is TM. TM form must be used for reporting by the Ads even when
remittance is approved by Bangladesh Bank in any other manner, for instance by
issuing a special permit. On receipt of the application in the prescribed form, the Ads
may affect the sale of foreign exchange if they are empowered to approve the
application. If the transaction requires prior approval of the Bangladesh Bank, the
form should be forwarded by the AD to the Bangladesh Bank for Consideration.

4) Applications for Bangladesh Bank's prior approval for outward Remittances,

wherever required, should be submitted to Bangladesh Bank only through the Ads
and not by their customers directly; all such applications should be forwarded by the
Ads to Bangladesh Bank by their own messengers or by post.

5) In respect of the forms or permits etc. approved from the Bangladesh Bank, the Ads
should see that these have been approved by duly authorized officers and that they
bear the Bangladesh Bank's embossing seal. In case an official of Bangladesh Bank
whose specimen signature may not be available with them signs the authorization
such authorization should be resend to the nearest office of the foreign Exchange
Policy Department and the signatures authenticated. It is most important that, once
forms have been approved by or on behalf of the Bangladesh Bank, the Ads carry
out the transactions only on behalf of the original applicants for whom the forms
were approved.

6) Permits issued (where applicable) by the Bangladesh Bank must be utilized within
the period of its validity indicated in the permits. The amount released must not
exceed the authorized limit. Also, the instructions, if any, given in the permits with
regard to the amounts to be released periodically e.g. monthly or quarterly must be
strictly adhered to.

7) Remittances made against permits or approval letters of Bangladesh Bank should be

reported on TM form. The AD must state on the TM form the number of the permit
against which the remittance has been made by him and must certify that the

23
CHAPTER THREE: REMITTANCE

remittance has been endorsed by him on the permit. The remittance must be
endorsed on the back of the permit giving the date of the remittance under the stamp
and signature of the AD. When the permit is exhausted or no longer required, it
should be returned to the Bangladesh Bank by the AD along with the TM form on
which the last remittance is reported.

8) All authorizations excepting TM forms approved by the Bangladesh Bank or by the

Ads on behalf of the Bangladesh Bank remain valid for a period not exceeding 30
days from the date of approval unless they are expressly stated as valid for a
specified longer period or unless they have been revalidated for a further period. TM
form approved by the Bangladesh Bank will, however, remain valid for a period of
three calendar months from the date of approval by the Bangladesh Bank. Permits
issued by the Bangladesh Bank are also valid for specified periods as stated on the
permits. The Ads should not affect any remittance against approved Forms or
Permits, which have lapsed unless they have been duly revalidated.

9) Original copies of all IMP forms, TM forms covering remittances affected by the
Ads must be submitted to the Bangladesh Bank along with the appropriate returns
for the disposal of the remaining copies of the IMP forms.

In the event of any remittance, which has already been reported to the Bangladesh Bank
on the prescribed return being subsequently cancelled either in full or in part, the Ads
must report the cancellation of the outward remittance as an inward remittance. The
return in which the reversal of the transaction is reported should be supported by a letter
giving the following particulars:

 The date of the return in which the outward remittance was reported.
 The name and address of the applicant.
 The amount of the sale effected originally.
 The amount cancelled.
 Reasons for cancellation.

24
CHAPTER THREE: REMITTANCE

2. Inward Remittance
Inward remittances may be affected in the above-mentioned process. All such inward
remittances are to be reported to Bangladesh Bank on form if the amount is above $2000
and no “IRV”. In case of Wage Earners Scheme the remittance is to be reported on
schedules WSR 1 to 4 and WSP 1 to 10. The procedures of Inward Remittances of NCCBL
are as follows:

1) The term "Inward Remittances" includes not only remittance by T.T., M.T.,
Drafts etc., but also purchases of bills, purchases of drafts under Travelers'
Letters of Credit and purchases of Travelers’ Checks.

2) The Ads may freely purchase foreign currencies or raise debits to non-
resident Taka Accounts of the respective bank branches and correspondents.
Remittances equivalent to US$ 2000 and above should be reported oil Form
C attached to the appropriate schedule however, declaration on Form C by
the beneficiary is not required against remittances sent by Bangladesh
nationals working abroad. The purpose of remittances should be clearly
stated on the Form C. Where the country of origin of funds and currency in
which remittances received are the same, the Ads may submit a consolidated
Form C in respect of those remittances attaching therewith a separate list
showing details of remittances comprising the amount reported on Form C.
Remittances received against exports should be certified and reported on
EXP Forms. In case of remittance received in advance for exports the AD
should obtain a signed declaration from the beneficiary on the back of the
"Advance Receipt Voucher” certifying the purpose of remittance.

3) There is no objection to the Ads obtaining reimbursement from non-resident

banks in freely convertible foreign currency in respect of Taka bills and
drafts purchased by them under instructions from such a non-resident bank
whether under Letters of Credit or under other arrangements.

25
CHAPTER THREE: REMITTANCE

4) If an inward remittance already reported to the Bangladesh Bank is

cancelled, either in full or in part, because of non-availability of beneficiary,
the Ads must report the cancellation of the inward remittance as an outward
remittance on TM form. The return in which the reversal of the transaction is
reported should be supported by a letter giving the (a) reference of the return
in which the inward remittance was reported (b) name and address of the
beneficiary (c) amount and the reason for cancellation and (d) amount of the
purchase as effected originally.

3.2.1 Types of remittance

Remittances are basically two types:

3.2.1.1 Local Remittance.
3.2.1.2 Foreign Remittance.

3.2.1.1. Local Remittance

Remittance is significant part of the general banking. The bank receives and transfers
various types of bills through the remittance within the country. Obviously the bank charges
commission on the basis of bills amount. NCCBL remittances are safe, swift, inexpensive
and simple. The types of local remittance are:

1) Pay Order (PO).

2) Demand Draft (DD).
3) Telegraphic Transfer (TT).
4) Mail Transfer (MT).

1) Pay Order (PO):

Pay Order is an instrument that contains an order for payment to the payee only in case of
local payment whether on behalf of the bank or its constitution. Unlike check there is
possibility of dishonoring Pay Order. NCCBL charges different amount of commission on
the basis of Pay Order amount.

26
CHAPTER THREE: REMITTANCE

2) Demand Draft:
By DD any person can send money from one branch to another branch of NCCBL. To send
the money he/she must fill up the NCCBL prescribed form of DD and paid
charge/commission and receives DD block. The following information included in the DD
block:

 Name of the sender branch.

 Name and account of the party who receives the money.
 For security purpose a confidential test number are included in the DD block.
 Amount of money to be transferred.
 Name of receiver branch.
The sender sends this block to the receiver branch of DD. When the receiver branch receives
this DD block, the authorized officer of the receiver branch tests the DD confidential
number and if the test number is proofed then s/he gives the money to the payee.

3) Telegraphic Transfer:
To send money urgently NCCBL may be requested for TT on payment of a nominal charge
and telegram charge. Any person urgently sends money from one branch to another branch
within NCCBL through TT. When a message of TT sends through phone from one branch
to another branch; in that time the message received by the authorized officer who has a
right of power of attorney. After that, s/he fills up the TT form. Following things are
included in the TT form:

1 TT number.
2 TT test number.
3 Name and account number of the payee.
4 Power of attorney number of the sender and receiver of TT.
5 The amount to be transferred.
After fill up the TT form, officer tests the test number of TT. If officer ensures through
testing the test number then the officer credits the account of the payee. On the other hand, if
the test number is not proved then s/he calls back to the sending branch of TT and request to
send a new TT.
4) Mail Transfer:

27
CHAPTER THREE: REMITTANCE

Money can be sent through mail transfer to anybody who has an account in any other branch
of the same bank for this purpose the sender shall have to furnish the details like:

 The name of the beneficiary and his account number.

 The amount to be transferred.
 The name of the branch where the account is maintained.

3.2.1.2. Foreign Remittance

NCCBL is the member of MoneyGram and SWIFT networks. Using the services of this
global network, non-resident Bangladesh nationals can send money from abroad to their
home country within a few minutes without any risk. NCCBL has also arrangement with
foreign money exchange companies like UAE Exchange Co., Redha-Al-Ansari Co. etc. The
operation of the foreign remittance took different forms through the following organization
through NCCBL.

3.2.2 Exchange Companies and Remittance Process

3.2.2.1 MoneyGram:
Introduction
National Credit and Commerce Bank Limited is very happy to announce to have joined
hands with MoneyGram Payment Systems Inc to serve expatriates to send money back
home quickly from anywhere in the word. Moreover, money can also be sent quickly
through MoneyGram from Bangladesh to other parts of the World as is done through the
banking channel. At the moment we are concentrating on home remittances being sent by
the expatriates.
MoneyGram Payment system Inc is a non-back provider of electronic money transfer
service. MoneyGram is providing its customers a service of an unsurpassed quality and
superior value. MoneyGram has over 25,000 Agent locations throughout the world. Persons
anywhere require transferring cash quickly, reliably, conveniently and at attractive prices to
more than 115 countries can depend on MoneyGram agents for the service.
History

28
CHAPTER THREE: REMITTANCE

MoneyGram, Originally a money-transfer service of American Express Company provides

the expertise and reliability you expect from years of experience in the payment system
industry. American Express Travel related Service Company launched a new consumer
money-transfer service named MoneyGram in 1988. Until December 11, 1996 MoneyGram
was a wholly- owned subsidiary of First Data Corporation. In 1996 MoneyGram was taken
public and listed on the New York stock exchange. MoneyGram is now a part of Travelers
Express Company, the US’s largest money order company through a merger in end 1998. In
March 1998 MoneyGram became fully licensed to provide money transfer service under its
own name.

Our Mission
In our continuous commitment to serve the country’s economy in a better way we have
made agreement with MoneyGram Payment Services Company to facilitate transfer flow
money from abroad. Our expatriates who are living in many countries of the world can
derive the best benefit of the service.

The major problem being faced by our expatriated in many countries is not having bank
accounts. Many banks do not entertain customers for remitting money without having
accounts. A big part of our expatriates’ income is channeled through clandestine means.
Moreover many of our expatriates cannot get acquainted with banking formalities
immediately on reaching abroad. It is not necessary to have a bank account to use Money
Gram Service. Our expatriates can visit any Money Gram agent when they want to send
money, which gives very easy and convenient transfer.

Money Gram is represented in over 115 countries and is available at more then 25,000
locations worldwide. In the USA alone Money Gram is available at more than 15,000
locations. Besides in the UK MoneyGram is available through 1700 Postal Branches and
500 Thomas Cook travel shops making it the UK’s largest money transfer network.
Finally using the MoneyGram Service could not be simpler. All one has to do is to visit a
conveniently situated MoneyGram agent anywhere in the world and hand over the money
they want to send their relatives or friends along with the one-off transacting fee.
Sender completes a “Send” form and gets a Receipt. MoneyGram Agent gives a Ref. no.
which has to be passed to the Receiver.

29
CHAPTER THREE: REMITTANCE

Recipient the goes to NCC Bank Branch in Bangladesh. Fill out a “Receive” form and show
proper identification.

 NCC Bank makes an inquiry on the MoneyGram computer network to obtain

authorization to pay Recipient and Recipient receives the fund.
 MoneyGram is one of the fastest ways to transfer money. Customers using
MoneyGram can send or receive money usually within 10 minutes from anywhere
in the world.

At NCC Bank we provide the Recipients immediate attention ad due care. We have made it
a point to pay the Recipient within minutes. The Recipients need not require having a bank
account. We do not levy any extra charge. We give a better exchange rate to the Recipient.
The Recipient can approach any for the NCC Bank branches at his convenience for
payment.

The operational procedure of MoneyGram takes the following way:

1) Sender goes to Send Agent
2) Send Agent received Money and enter information into MoneyGram System via
MW Software and give a Reference Number.
3) Sender provides the Reference Number to the Receiver.
4) Receiver comes to Receive Agent (NCCBL) with that Reference Number and fill up
a form supplied by Money Gram.
5) Received Agent gets connected with the MoneyGram System via MW Software with
that Reference Number, if find OK then pay cash on counter.
6) Received Agent (NCCBL) keep copy of valid ID (Valid passport, bank certificate)
from the receiver.
7) Then Cover Fund is credited to NCCBL account with respective bank (i.e. Standard
Chartered Bank, New York) on the following day equivalent to the payment made
by NCCBL branches. NCCBL pay first and next day receive the fund.

30
CHAPTER THREE: REMITTANCE

3.2.2.2 Placid Express NY:

In March 2002, the bank has entered a Taka drawing arrangement with Placid Express NY,
for home remittances of Bangladeshi expatriates in the United States. The beginning was
good and the bank offered ideal customer services but the volume of remittance through this
channel has been reduced very soon because of the several reasons like (a) removal of
one of the top executives for activities that caused huge losses of the bank, (b) increase in
the number of competing companies, (c) longer transaction time in servicing beneficiaries of
remote areas beneficiaries where NCCBL does not have any branches, (d) lack of liquidity
and (e) absence of online mode of payment, which is however sometimes hazardous for
transactions. The operation of Placid Express NY takes following way:

1) Bank receive list of invoices via e-mail at the morning and place for test.
2) Each invoice contains information about the beneficiary such as his name, bank &
branch name, account number, phone no, address etc.
3) Then Bank separates the invoices according to the location of beneficiary’s bank
branch and nearest branch and prepares branch-wise statement and fax statement to
the respective branch by 11:30 AM.
4) If beneficiary maintains account with NCCBL than it credited the fund to his
account by noon.
5) If beneficiary maintains account with other bank than issue P/O in favor of him and
sent it by hand/courier service to his bank. Beneficiary’s bank present the P/O at the
clearing house and collect the fund from NCCBL bank for further credit to the
beneficiary’s account. Generally it takes 2-4 days for crediting the fund to the
beneficiary’s account.
6) Then Cover Fund is credited to NCCBL account with respective foreign bank (i.e.
Citibank NA, New York) first then NCCBL pay against that fund.

31
CHAPTER THREE: REMITTANCE

3.2.2.3 Xpress Money:

The Xpress Money Services would like to welcome NCCBL to their network. It is a
worldwide money transfer agency but NCCBL focus on U.A.E to collect remittance
because, there are approximately 1.41 million Bangladeshi works in U.A.E. Xpress Money
(XM) is a web-based person-to-person money transfer system that allows an individual to
send/receive money through any of our network agents instantly. All transactions are done
through secure servers using 128-bit encryption technology so as to provide maximum
security. Xpress Money requires following system requirements:

1) PC (Operating system Windows 98 or higher) with connection to Internet and

preferably a LaserJet Printer for taking prints.
2) RAM works well with Internet Explorer version 5.50 (Build 4522.1800) and above.
3) Flash Player is required (user will be prompted to install when visiting the site, if it’s
not already in the computer).
4) Wingdings 2 and Wingdings 3 fonts should be installed for best viewing the icons.

3.2.2.4 AL FARDAN Exchange:

AL FARDAN Exchange, the pioneer in money exchange and worldwide remittance services
in the U.A.E. established in 1971, is a trusted name for millions of residents and expatriates.
A modern exchange house with advanced infrastructure and courteous staff; has an
extensive network of correspondent banks all over the world to facilitate faster, completely
reliable transactions. AL FARDAN Exchange offers the most competitive rates on its array
of money exchange services and offers need-based services that cover all transactional
needs. Worldwide remittances purchase and sales of foreign currency banknotes and
travelers’ checks, cash advance against credit cards are just a few services to mention from a
wide range of financial services offered.
3.2.2.5 Habib Express:

32
CHAPTER THREE: REMITTANCE

Habib Express is another important medium through which wage earner remittance is
accepted by NCCBL. Here head office at first enter in system server and received necessary
information about the amount of remittance, beneficiary who will receive the amount and
any reference number which work as security for Bank as well as beneficiary. Head office
gives information through fax to it respective branch from where receiver will receive
money. Another way, when customer comes to bank than, respective branch where online
system is activate, they enter in terminal to get necessary information to pay money. The
process is as following:
1) Bank receive list of invoices via e-mail at the morning and place for test.
2) Each invoice contains information about the beneficiary such as his name, bank
& branch name, account number, phone/address etc.
3) Then Bank separates the invoices according to the location of beneficiary’s bank
branch and nearest branch and prepares branch-wise statement and fax statement
to the respective branch by 11:30 am.
4) If beneficiary maintains account with NCCBL than it credited the fund to his
account by noon.
5) If beneficiary maintains account with other bank than issue P/O in favor of him
and sent it by hand/courier service to his bank. Beneficiary’s bank present the
P/O at the clearing house and collect the fund from our bank for further credit to
the beneficiary’s account. Generally it takes 2-4 days for crediting the fund to the
beneficiary’s account.

3.2.2.6 Dhaka Janata Exchange:

Dhaka Janata Exchange introduced to provide remittance facilities to emigrant and other
people of Bangladeshi who work as contractual basis in the Italy. Here Dhaka Janata
Exchange also maintains same procedure of getting information from system server
including the name, reference number, amount, Phone number etc. But difference with other
product is that its respective branch cannot get information from using software. Here head
office sends information through fax to all respective branches. While receivers arrive at
bank, than respective branch check his information with information received from head
office. If the facts match then payment takes places. The operational procedures are same as
the Habib Express.
3.2.2.7 Tele Money (TM) / ANB:

33
CHAPTER THREE: REMITTANCE

Tele Money is another important product for remittance services. There are approximately
1.89 million of people of our country works in Saudi Arab. Tele Money helps those people
to send their money within very short moment through Arab National Bank. The operational
procedure of Tele Money is same as other. Through specified software head office collect
the invoice including name, address, secret code etc. People those who have account with
NCCBL, are credited in their account. In Tele Money; bank inform to beneficiary about
their money every day to provide them more facilities. NCCBL have no branch in all places
where beneficiary stay. So Tele Money provides this service through third party. Here
mostly Sonali Bank works as third party and receives commission from this service.

3.2.2.8 Zenj Exchange Company (Turbocash):

In 2010, NCCBL contracts with Zenj Exchange Company; product name is Turbocash for
foreign remittance collection from Bahrain. Turbocash is instant money transfer. ID
Payment and Bank deposit available with this service. You can send money to GCC
Countries as well as Asian countries. Funds usually arrive within 10 minutes, and there is no
unnecessary paperwork or hassle

3.2.2.9 Export Proceed:

Export Proceed are very vital part in remittance services, as it cover large portion of total
remittance of NCCBL. Most of remittance received from corporate level for their exporting
business. Here several types of Bank are engaged with these services. Payment is made
through Nostro and Vostro Account. Here Nostro account means, NCCBL have an account
with listed foreign bank. Foreign remittances come to NCCBL through those foreign banks.
Foreign importers pay the money to that foreign bank. Foreign bank credited necessary
amount to NCCBL account. All of remittance come in export proceed as foreign currency.
Head office converts this foreign currency into home currency and pay to his respective
branch. Foreign banks those have contract with NCCBL take two forms; interest bearing
and non-interest bearing.
The non-interest bearing banks are:
1 Standard Chartered Bank, Singapore.

34
CHAPTER THREE: REMITTANCE

2 Standard Chartered Bank, Japan.

3 American Express Bank, New York
4 Sumitomo Mitsui Banking Corp.
5 Bank of Tokyo Mitsubishi, Japan.
6 Bank of Tokyo Mitsubishi, Kolkata.
7 American Express Bank, Colombo.

The interest bearing banks are:

1 Standard Chartered Bank, New York.
2 Mashreq Bank, New York.
3 Citibank N.A, New York.
4 Standard Chartered Bank, London.
5 Uni Credio Italiano spa.
6 Commerge Bank AG, Frankfurt.

3.2.2.10 SWIFT (Society for Worldwide Inter-bank Financial Telecommunication):

NCCBL is a member of society for inter-bank financial telecommunication. Through this

fast, secure, and global communication NCCBL has gained 24 hours connectivity with 7000
financial institutions in 200 countries for transmission of L/Cs, Guarantees, funds transfers,
payments etc. SWIFT is a bank owned non-profit co-operative based in Belgium servicing
the financial community worldwide. It ensures secure messaging having a global reach of
6495 Banks and Financial Institutions in 178 countries, 24 hours a day. SWIFT global
network carries an average 4 million message daily and estimated average value of payment
messages is USD 2 trillion. SWIFT is highly secured messaging network enables Banks to
send and receive fund transfer, L/C related and other free format messages to and from any
bank active in the network. Having SWIFT facility, Bank will be able to serve its customers
more profitable by providing L/C, payment and other messages efficiently and with utmost
security.

3.2.2.11 Identification of document used:

35
CHAPTER THREE: REMITTANCE

Required documents/Check list for establishment of Remittance Arrangement with overseas

Banks/Exchange Companies:

1. Proposal from the concerned exchange company for establishment of Agency

Arrangement.
2. Resolution of the Board of Director’s of the company regarding establishment of
Agency Arrangement duly attested by the embassy of Bangladesh in applicant’s
country.
3. License from their monetary authority/Central bank duly attested by the embassy of
Bangladesh in applicant’s country.
4. Valid trade license duly attested by the embassy of Bangladesh in applicant’s
country.
5. Memorandum and Articles of Association duly attested by the embassy of
Bangladesh in applicant’s country.
6. Certificate of Incorporation duly attested by the embassy of Bangladesh in
applicant’s country.
7. Membership certificate from Local Chamber of Commerce & Industry duly attested
by the embassy of Bangladesh in applicant’s country.
8. Credit worthiness/Business status /Confidential report of the company to be
collected through embassy of Bangladesh in applicant’s country.
9. Credit report from the Companies Banker.
10. Audited financial statement of the company for the last 3(three) years duly attested
by the embassy in applicant’s country.
11. Money Laundering policies and procedures (guidelines) of the company.

3.2.2.12 Agency Arrangement:

We enter into remittance arrangement with the overseas Exchange Companies/Banks under
the following system:
i) Draft Drawing Arrangement
ii) TT Drawing Arrangement under Electronic Fund Transfer (EFT) System
(Swift/Secured Software/Tested e-mail).
Under Draft Drawing Arrangement remittance will be sent directly to the beneficiary/

36
CHAPTER THREE: REMITTANCE

beneficiary’s Bank in the form of DD.

Under EFT system remittance will be sent in the prescribed excel format stating beneficiary
detail.
Under the EFT system the payment will be made
a) Credit to the beneficiary’s account
b) Instant Cash over the counter verifying PIN code and Photo ID.
 Pin code for identification of the remittance
 Photo ID for the identification of the beneficiary

Major Terms and Conditions of Bangladesh bank for seeking their approval for
establishment of Remittance Arrangement with overseas Exchange Companies:
1. The Exchange Company shall have to provide security deposit/Bank
Guarantee.
2. The Exchange Company shall have to maintain a minimum balance in their
Non-resident Non-Convertible Taka account.
3. The Exchange Company shall have to ensure & confirm the deposit of cover
funds against every remittance in the Nostro A/C and Payment will be effected
to the beneficiary (i.e) as per instruction at our end by debiting NRT account.
4. Under any circumstances the Account will not be allowed that to be
overdrawn.
5. It is to be mentioned specially that permission given by the Bangladesh Bank
shall be valid till the validity of the license given by the Licensing Authority of
the Company’s Country.
6. In case the validity of the license issued by the Company’s Country is not
renewed /extended the Bank shall also not extend the validity of the remittance
Arrangement with the Company.
7. If any incident of breach of the terms and conditions of the approval letter &
the rules and regulations of the foreign exchange transaction is detected the
approval of the arrangement will be cancelled immediately.

3.2.2.13 Accounts of Exchange Company/Bank:

The Exchange companies/Banks maintain two types of account with us-

37
CHAPTER THREE: REMITTANCE

 Non- Resident non-convertible Taka Account (NRTA)

 Non- Resident Foreign Currency Account

NRT Account for Taka remittance

Non- Resident Foreign Currency Account for foreign currency remittance.

3.2.2.14 Cover Fund:

The company/Bank shall provide the Cover Fund against Payment Instructions/total
remitted amount to the designated NOSTRO Account of NCCBL.

3.2.2.15 Accounting procedures:

Upon receipt of the cover fund, i.e. when cover fund of the remittance will be credited to our
Nostro account, NCCBL will debit the Nostro account and credit the equivalent amount to
the respective account of the company/bank.

Upon receipt of the Payment Instructions, NCCBL will credit the amount to the respective
beneficiary’s account after debiting the company/bank US Dollar and/or local currency
account.

Voucher pass:
Debit: Nostro Account
Credit: NRT Account/NRFC Account

Debit: NRT Account/NRFC Account

Credit: Beneficiary account through IBCA

3.2.2.16 Customer Identification:

38
CHAPTER THREE: REMITTANCE

Correct Beneficiary Identification:

Cash payouts shall be made upon proper identification of the beneficiary of the remittances
based on the any of the following types of ID of the Beneficiary which should be current
and contain a photo where applicable: -

1. National ID / Voter ID Card or Chairman's certificate with photograph of the

Beneficiary.
2. Copy of Passport.
3. Driving License.
4. TIN Registration Certificate
5. ID issued by the employer with photo.
6. Introduction from a bonafide person whose identity has been duly verified.
7. Any other ID document to the satisfaction of our Bank Branch Managers concerned.
8. Letter of Introduction from the Banker of the Beneficiary.

39