Foreign Exchange Remittance

 Introduction of the report

The internship program is full credit subject of the BBA program of the StamfordUniversityBangladesh, Which constructs a relation between the real life state of affairs and theoretical concepts.

For any foreign exchange requirement, a specialist fx broker can assist in helping you make the most of your money. Whether you are buying an overseas property, emigrating or paying bills you will get the best exchange rates with no fees and a fast, safe transfer of funds every single time to any chosen account.

As a student of Business Administration of BBA program I prefer to prepare a report on banking sector rather than other financial institution. This internship report of my BBA program that performed by me as a student of Stamford UniversityBangladesh, Department of Business Administration. In a way I select the banking sector and my supervisor Umme Hanna Airin Ara offered me prepare the report on title as “Foreign Exchange Remittance of Bank Asia Ltd. Though it will be very difficult for me to data collection because of my working branch stands in Jessore, yet I’ll be going to try my best to prepare the report.

Objectives of the Study

Objectives:

The objective of the analysis is to evaluate the procedure of “Foreign Exchange Remittance” of Bank Asia Limited. There are also many objectives. The primary objective of this report is to comply with the requirement of the Bank Asia Limited. But the objective behind this study is something broader. Objectives of study are summarized in the following manner:

• To evaluate import – export procedures.
• To evaluate the performance of the bank.
• To apply theoretical knowledge in the practical field.
• To make bridge between the theories and practical procedures of banking day-to-day operations.

• To gain practical knowledge by working in different desks of Jessore branch office of bank Asia Ltd.

• To observe the working environment in commercial banks.
• To study existing banker-customer relationship.
• To know the overall functioning of Bank Asia Limited.
• To have some practical exposures that will be helpful for my future career.

Specific Objectives:

• To submit a report, for the fulfillment of my BBA program.
• Is to find out the “Foreign Exchange Remittance of Bank Asia Ltd.”

Broad Objectives:

• Together comprehensive knowledge on total banking functions.
• To identify the factors contributing to the attractive & operative performance of the local branch of the bank.

• To make a study of the facts in order to arrive at certain conclusion about foreign exchange system.

• Critically analyze the functions and the operations of each level of the organization of Bank Asia Limited.

Scope of the Study:

This report is based on my observation & during my internship period in head office. The study covers the bank’s functional areas i.e. International Division (Remittance and Foreign Exchange Department) of Bank Asia Limited, Jessore Branch.

Methodology of the Study

Methodology

This report has been prepared on the basis of experience gathered during the period of Internship from May 03, 2009 to August 03, 2009. For preparing this report, I have undergone group discussion, collected data and sent some questionnaires to the selected Officers and interviewed with some of them. I also studied different circulars and files of the bank.

I hope these criteria will be enough to find out different picture of import export procedure and financial performance of the selected Bank Asia Ltd.

Sources of Data:

In order to make the report more meaningful and presentable, two sources of data and information have been used widely.

The “Primary Sources” of Data are as follows:

Face-to-face conversation with the respective officers and staffs of the Branch.

Informal conversation with the clients.

Practical work exposures from the different desks of the departments of the Branch covered.

Relevant file study as provided by the officers concerned.

The “Secondary Source” of Data and Information are:

Annual Report of Bank Asia Ltd.

Various Books, articles, compilations etc. regarding general banking functions, foreign exchange operations and credit policies.

Different Procedure Manual published by Bank.

 Limitation of the Study

There are some limitations in every analysis. I have also faced some problems at the time analyzing the performance of the bank. The limitations of my analysis are given below:

1. Time is limited (3 month)
2. Insufficiency of information.
3. The bank personnel are very busy.
4. It was very difficult to collect the information from various personnel for their job constraint.

5. As some of the fields of banking are still not covered by our courses, there was difficulty in understanding some activities.

6. Another limitation of this report is Bank’s policy of not disclosing some data and information for obvious reason, which could very much useful.

7. I carried out such a study for the first time, so inexperience is one of the main constraints or the study.

Industrial Overview

Now a day’s bank plays an important role of financial stability of a country. It is an institute, which is responsible for safeguarding the financial stability of a country. Due to globalization & technological innovation banking system has become very competitive. The present economic state of Bangladesh demands immediate market development of financial institutions. The key to success in such demanding market situation is how automated the service is on a continuous real time basis.

 Introduction

The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word ‘bank’ was probably derived from the word bench’ as during ancient time Jews used to do money -lending business sitting on long benches.

First modern banking was introduced in 1668 in Stockholm as ‘Svingss Pis Bank’ which opened up a new era of banking activities throughout the European Mainland.

In the South Asian region, early banking system was introduced by the Afgan traders popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afganistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as ‘Kabuliawallas’.

Number and Types of Banks

The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616; private commercial banks 1,214, foreign banks 31 and specialized banks 1,177.Bangladesh Bank (BB) regulates and supervises tile activities of all banks. The BB is now carrying out a reform programmed to ensure quality services by the banks.

• 1313
• NCl3s
• PCBs
• Specialized Banks

 Bangladesh Bank (Central Bank of Bangladesh)

Bangladesh Bank (BB) has been working as the central bank since the country’s independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the government’s monetary policy and implementing it thereby. The BB has a governing body comprising of nine members with the Governor as its chief. Apart from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

Bangladesh Bank in a Brief

Bangladesh Bank, the central bank of the country, was established as a body corporate

Vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. The general superintendence and direction of affairs and business of the Bank are entrusted to a nine member Board of Directors which consists of the Governor as chairman, a Deputy Governor, three senior government officials and four persons having experience and proven capacity in the fields of banking, trade, commerce, industry or agriculture – all nominated by the government. The board, which is the highest policy making body, meets at least six times a year and at least once every quarter under the chairmanship of the Governor. The Governor, appointed by the government as the chief executive officer, directs and controls all the affairs of the Bank on behalf of the Board.

Vision and Mission

Vision

The Bangladesh Bank (BB), through ensuring the quality of services and the competence of’ its staff, shall operate as a modern, dynamic, effective, and forward-looking central bank to manage the country’s monetary and financial system with a view to stabilizing the internal and external value of Bangladesh Taka conducive to rapid growth and Development of the economy.

Mission

To uphold the vision and in pursuant with the Bangladesh Bank Order of 1972, Bangladesh Bank’s mission is to promote and maintain macroeconomic and price stability through:

Formulating and implementing appropriate monetary policy consistent with the country’s national development goals;

pursuing prudent policies to ensure stable internal and external value of Taka;

Identifying policy priorities for implementation by the Government through assessing the transmission channels and the interactions of monetary policy with fiscal, exchange rate, and other macroeconomic policies and their impact on the economy;

Proposing necessary legislative measures to attain the central bank’s objectives and perform its functions including strategies and regulations for and supervision of banking companies and financial institutions with the aim to providing efficient financial intermediation and financial services to large, medium, small, and micro enterprises and to pro-poor activities ;

Promoting, regulating and. ensuring a secure and efficient payment system, including the issue of Bank Notes;

Giving advice to the Government on the interaction of monetary policy with fiscal and exchange rate policies, on the impact of various policy measures on the Company;

Analyzing priority macroeconomic issues for policy advice and dissemination of information to attain the central bank’s social responsibility.

To this end, 1313 would ensure that it has the requisite human and infrastructural resources and build its capability to promote and ensure a robust and well-functioning financial sector. This mission statement pledges that the guiding philosophy of BB’s operations would be sound regulatory Framework conducive to the operation of efficient market mechanism along with transparency and accountability, professionalism, ethical standards, adoption of modern technology in operational and decision making processes, and trust and respect in all relations. Periodic strategic planning would serve to identify the emerging challenges, key changes affecting BB’s internal and external environment and set its strategic guidelines, set priorities, promote improvements in management practices, and induce necessary changes in organizational culter to fulfill its mission, BB would undertake activities related to developing the national financial system and management of monetary, foreign exchange, and credit policies. The Bangladesh Bank’s core mission strategies cover both monetary policy and financial sector developments.

Monetary Policy

The aim is to achieve the twin goals of containing inflation and promoting sustained and stable economic growth; provide policy advice to the Government on deficit financing and public debt management; manage the balance of payments and foreign exchange reserves; provide payment services and ensure the stability of the financial system; conduct treasury and government securities related operations; and efficiently perform other international financial activities.

Financial Sector Developments

Critical activities cover the development of the financial systems; provide effective prudential supervision; ensure information access, market intelligence, and contingency planning to avoid systematic risks; assist banking and financial entities to become efficient and competitive; discover new modalities for delivering agricultural and industrial term credit; enhance the access of small and medium enterprises to investment funds; further develop the market in public and private debt and risk capital; and promote measures f0r inclusion of people hitherto bypassed in formal financial systems.

In addition, the Bangladesh Bank will continuously adopt necessary measures for taking a proactive stance in decision making; compiling relevant statistics and conducting high quality and timely economic research to review the country’s financial and economic conditions to support decision making; ensuring efficient and professional management of BB’s human and financial resources; and establishing BB’s distinct identity based on its values and strategic roles.

In order to uphold the mission, Bangladesh Bank’s aim would be to provide the required leadership by discharging its duties in a manner that shows a clear vision, is watchful, far-sighted, intelligent and responsive based on an effective and efficient communication strategy. At all times, BB’s aim would be to remain committed, efficient, capable, logistically Supported, speedy, focused, and aggressive where necessary in order to ensure that the Bangladesh Bank

Always remains a credible and prestigious institution with an efficient organizational structure committed to achieving its goals.

Organizational Overview

History:

Bank Asia has been launched by a group of successful entrepreneurs with

Within a short span of time Bank Asia has established itself as one of the fast growing local private banks. It has at present a network of Thirty Six branches serving many of the leading corporate houses and is gradually moving towards retail banking. Another significant delivery channel is its own as well as shared ATM Network. Bank Asia has a network of 44 ATMs out of which 18 it owns. The other 26 ATMs are shared through ETN with eleven other banks. Since its humble beginning in 1999, it set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank.

In the year 2003 the Bank again came to the limelight with oversubscription of the Initial Public Offering of the shares of the Bank, which was a record (55 times) in our capital market’s history and its shares commands respectable premium.

The asset and liability growth has been remarkable. In the year 2008, the asset base of the Bank has increased by 39% from Tk. 38427.85 million in 2007 to Tk. 53371.25 million in 2008. Deposits rose by 41% in the same period from Tk. 30004.09 milliopn in 2007 to Tk. 42435.24 million in 2008. Advances, in spite of the “slump”in the economy, rose from Tk. 28456.94 million in 2007 to Tk. 39975.00 million in 2008 with a growth rate of 40%. The operating profit also rose from Tk. 1574.72 million in 2007 to Tk. 1904.88 million in 2008 registering a growth of 21%. Bank Asia has been actively participating in the local money market as well as foreign currency market without exposing the Bank to vulnerable positions. The Bank’s investment in Treasury Bills and other securities went up noticeably opening up opportunities for enhancing income in the context of a regime of gradual interest rate decline.

Bank Asia is maintaining it’s competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovative products like SMS banking, and under the ATM Network the Stelar Online Banking software enables direct linking of a client’s account, without the requirement for a separate account.

Mission & Vission:

Mission

To assist in bringing high quality service to our customers and to participate in the growth and expansion of our national economy.

To set high standards of integrity and bring total satisfaction to our clients, shareholders and employees.

To become the most sought after bank in the country, rendering technology driven innovative services by our dedicated team of professionals.

Vision

Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.

The Objectives of the Bank

a) To regulate the issue of the currency and the keeping of reserves;

b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value;

c) To preserve the par value of the Bangladesh Taka;

d) To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country’s productive resources for the national interest

 Organogram

Board of Directors

CHAIRMAN

Mr. Anisur Rahman Sinha

VICE CHAIRMAN

Mr. Anwarul Amin

Mr. A.M. Nurul Islam

DIRECTORS

Mr. Romo Rouf Chowdhury

Ms. Farhana Huq Chowdhury

Ms. Shameem Choudhury

Mr. Shaique Uddin

Mr. Murshed Sultan Chowdhury

Mr. Mir Shahjahan

Mr. Faisal Samad

(Alternate Director of Ms. Mahrina Chowdhury)

Mr. M. Shamsul Alam

Lt. Col. (Retd.) Fariduddin Ahmed

PRESIDENT & MANAGING DIRECTOR

Mr. Erfanuddin Ahmed

COMPANY SECRETARY

Mr. Aminul Islam

Board’s Audit Committee

Mr. A M. Nurul Islam   – Chairman

Mr. Anwarul Amin   – Member

Mr. Mr. Murshed Sultan Chowdhury   – Member

Management Executives

PRESIDENT & MANAGING DIRECTOR

Mr. Erfanuddin Ahmed

DEPUTY MANAGING DIRECTOR

Aminul Islam

Erfanuddin Ahmed

SENIOR EXECUTIVE VICE PRESIDENT

S.M. Khorshed Alam

Irteza Reza Chowdhury

EXECUTIVE VICE PRESIDENT

Mohammed Roshangir

A.H.J. Rahman

Nasirul Hossain

Md. Azhar Ali Miah

Syed Nazimuddin

SENIOR VICE PRESIDENT

Swapan Dasgupta

M.M.A. Moquit

Md. Arfan Ali

Raiqul Hasan

A.K.M. Shahnawaj

Mohammad Borhanuddin

Md. Sazzad Hossain

Maruf Mohammed Ahsan

Md. Abu Bakar Laskar

VICE PRESIDENT

Mohd. Shahabullah

Md. Ashrafuddin Ahmed

A.K.M. Shaiful Islam Chowdhury

S.M. Iqbal Hossain

Md. Mozaffor Hossain

Syed Iltefath Hussain

Asadul Karim

Md. Raja Miah

FIRST VICE PRESIDENT

Niaz Ahmed Chowdhury

Nazneen Sultana

Md. Ekramul Hossain

Md. Zahid Hossain

Md. Zia Arin

Md. Azharul Islam

Afzalul Haq

Sui Tofail Ahamed

ASSISTANT VICE PRESIDENT

Alamgir Hossain

Debashish Karmaker

Md. Azizul Haque Khan

Ali Tarek Parvez

Humayun Yusuf Kabir

K.S.A. Ansari

Arequl Arefeen

Kamal Uddin Ahmed

Md. Saiful Islam Laskar

A.K.M. Rezaul Haque Chowdhury

Md. Murshid-Al-Amin

Md. Shahidul Islam

FIRST ASSISTANT VICE PRESIDENT

Khairul Haque

A.M.M. Nizamuddoula Khan

Faiz Mohammed

SyedMd. Ali Reza

Ibne Mohammad Shamsuzzaman

K.M. Shakhawat Hossain

Md. Prashanta Samir

Md. Tarek Hassan

Md. Inamul Islam

Mehbub Hasan

Tunku Humayun M. Morshed

Kazi Shamsul Haque

Mohammed Mamun-or-Rashid

Md. Mortuza Ali

M.M. Saiful Islam

Md. Jahangir Alam

Md. Hosnezzaman

Syed Humayun Kabir

Md. Elias Mollah

Nesar Ahmed

M.R. Chowdhury Rashed

Md. Serajul Islam

A.K.M. Tareq

Md. Mohsin Jamal

Sujit Kumer Sen

Mohammad Mainul Islam

Md. Belal Hossain

Muhammed Nizam Uddin

Md. Murshed Alam

Md. Omar Hayat Chowdhury

Md. Akmal Hossain

Towheedul Islam

Emdadul Haque

Saiful Islam

M.M. Shariful Islam

Mehedi Zaman Khan

H.M. Mostaizur Rahman

Md. Mazibur Rahman

SyedMd. Jarzis

Kazi Nowshaduzzaman

Mohammad Mahmud Alam

Hasan A. Saimoom

Ahmed A. Jamil

Md. Anisur Rahman

Mohammed Shahjahan

Md. Sultan Hayat Khan

M. Hasibul Alam

Md. Moniruzzaman

Rownak Amin

A.K.M. Mohsin Uddin

Md. Shahidul Islam

Md. Mustaizur Rahman

Product & Services

a) ATM Services

The Bank carries its banking activities through twenty four branches in the country. Bank Asia customers have access to 21 ATMs as a member of ETN. Under the ATM network the Stelar Online Banking Software enables direct linking of a client’s account, without the requirement of a separate account. The Bank has already set up its own ATM machine at 6 corresponding branches and is also in the process of setting up its own ATM network at every focused point in the city with a view of providing retail banking services.

Connect Asia
Bank Asia symbolizes modern banking with innovative services in Bangladesh. We provide Online Banking, ATM Support, SMS and Net Banking Services in the country. Our newly developed web application is fully authentic, secured and robust. This technology based services also provide you Fund Transfer through internet, Debit/Credit Card facility, free SMS message of special type of withdrawal from your account time to time.

b) On-line Banking:

All branches under online banking system will be able to do banking practices using a common server (which is centralized) from where only the branches will be able to enter using a common password.

c) Internet Banking:

Any one including any client or any branch from any direction will be able to enter in the system to do banking transactions.

Internet Banking Services 

Check account balance
Take print out of account statement for a particular period
Transfer fund within your own account
Make payment of mobile phone bill
Recharge your mobile phone as well as others from your account
Enquire foreign exchange rate
Enquire currency exchange rates.
Acquire information on all our products.
Every transaction report will be sent to client’s e-mail account.
Can change the password, pin code and respective     mobile number (For All Mobile Operator’s).

d) Sms banking

Short Message Service (SMS) is a communications protocol allowing the interchange of short text messages between mobile telephone devices. SMS text messaging is the most widely used data application. SMS as used on modern handsets was originally defined as part of the GSM series as a means of sending messages of up to 160 characters (including spaces), to and from GSM, CDMA networks and Digital AMPS, as well as satellite and landline networks. Most SMS messages are mobile-to-mobile text messages, though the standard supports other types of broadcast messaging as well.

e) Locker Services

Bank Asia brings to you a very user-friendly locker service that is a fine blend of security and confidentiality. At the same time for sheer convenience and further security we have also made arrangements for a well appointed rest room where you can beautify yourself, wear your jewelry before you step out for your appointment or you may also take your own time to go through your valuable documents in absolute discretion.

f) Bank Asia Credit card

Bank Asia Credit Card is accepted more than 3500 merchant outlets around the country. Bank Asia credit card offers you free credit facility up to 45 days and minimum 15 days without any interest; you can also pay 8.33% of your billing amount or current dues every month and thus have the flexibility to plan your payments.

g) Bonus Savings Scheme

Modern Banking is a result of evolutions driven by changing economic activities and lifestyles. Entering a new millennium, banking needs have become more diverse and exotic than ever before. Bank Asia Ltd. is a new entrant in the private banking scenario of Bangladesh with a promise to fulfil every possible customer need with high efficiency and satisfaction. Its team of dedicated professionals is committed to provide an unparalleled service by using the latest technology to make bankable proposals harvest maximum benefits for the customers, the shareholders and the society at large. It is an immense pleasure for Bank Asia to introduce Bonus Savings to its customers.

h) Deposit Pension Scheme

Deposit monthly installment ranging from Tk. 500/- to Tk.10,000/- and on maturity the holder receives a handsome amount as per table below:

Amount Payable at Maturity

Features of this product are:

In case of premature liquidation, the applicable interest rate is savings Bank account rate.

Installment to be made available in Savings Account in due time.

i) Double Benefit Plus

Only individuals can open this account.

Money deposited in this account will be doubled in 6 (six) years.

Deposit amounts will be Tk. 100,000/-or it’s multiple, and maximum will be Tk. 2,500,000/-under single name and Tk. 4,000,000/-under joint name.

In case of premature encashment, the applicable rate will be the simple savings rate of the Bank; however, there will be no interest payment for premature encashment within six months life of the account.

Loan facility will be available up to 90% of the deposited amount.

j) Triple Benifit Plus

 Only individuals can open this account.

 Money deposited in this account will be Tripled in 9 (nine) years 6 (six) months.

 Deposit amounts will be Tk. 100,000/-or it’s multiple, and maximum will be Tk. 2,500,000/-under single name and Tk. 4,000,000/-under joint name.

 In case of premature encashment, the applicable rate will be the simple savings rate of the Bank; however, there will be no interest payment for premature encashment within six months life of the account.

 Loan facility will be available up to 90% of the deposited amount.

k) Monthly Benifit Plus

MB+ is a 5-year scheme that lets the customer earn monthly benefit of Tk. 850/- or its multiple by minimum initial deposit of Tk. 100,000 or its multiple. Features of this product are: MB+ is a 5-year scheme that lets the customer earn monthly benefit of Tk. 850/- or its multiple by minimum initial deposit of Tk. 100,000 or its multiple. Features of this product are:

Only individuals can open this account.

The individual must have a Savings account with the bank in which the monthly benefit will be credited automatically. This link account will not be charged for incidental charges.

Deposit amounts will be Tk. 100,000/-or it’s multiple, and maximum will be Tk. 2,500,000/-under single name and Tk. 4,000,000/-under joint name.

The tenure of deposit will be 3 years and 5 years. The person will get monthly benefit of Tk. 975/-for deposit amount of Tk. 100,000/-for 3 years term deposit and Tk. 1,000/-for deposit amount of Tk. 100,000/-for 5 years term deposit.

In case of premature encashment, the applicable rate will be the simple savings rate of the Bank; however, there will be no interest payment for premature encashment within six months life of the account. The principal amount will be adjusted at the time of providing savings account rate.

Loan facility will be available against the account.

Deposit and monthly payment matrix

L) Coverage Loan

► This product will facilitate the customer to have financing for purchase of Apartment, house, construction of new house, extension of existing house etc.

► The product will allow Automobile/car [brand new or recondition] financing for personal use only. But car model should not order four years at the time of registration in Bangladesh.

► A consumer credit scheme that support purchase of various consumer durable such as television, Refrigerator, Ac etc. Any Bangladeshi individual has the means and capacity to repay the loan.

► Medical emergencies in life come unannounced! One can hardly BD prepared for such exigencies. Now Bank Asia’s Medical Support Gives you the financial support and peace of mind to tackle any unforeseen.

m) Repayment Procedure

Loan will be repaid depending on the inflows from investment as well as from other source of income as weekly, monthly or quarterly basis.

Interest Rate

General interest & rates are as Bank Asia declared with the honorable customer is shown below. We offer different rates and interest on different product. Below you will see some tables that include most significant information.

The Table Below Contains the Chart of Bank Asia:

Interest Rate on Lending

 Interest Rate on Deposit

n) Corporate Social Responsibility

In  these  days  of  globalization,  businesses,  industry,  inancial  institutions  cross  national boundaries every day. All over the world there is now a demand from the civil society, politicians and governmental authorities on such corporate bodies to fulil certain social obligations

– Also known as corporate social responsibility.  Bangladesh is no exception.  Corporate bodies are under increasing social scrutiny and pressure to contribute to social welfare of

the communities in which they operate. These relate to contributions towards improving the livelihood opportunities of the less fortunate, provision of facilities for education and health, protection of the environment, and encouragement of cultural and social activities in the rural as well as urban areas. The Board of Bank Asia has been conscious of our corporate social responsibilities from the very beginning. In fulfilling our obligations, the Board of Directors, in consultation with the management, has been providing support and resources for the following activities:-

(a)  Introduction  of  scholarships  for  poor  but  meritorious  students  of  the communities in which our rural branches operate to provide opportunities for higher education in modern subjects to build up their career.

(b)  Bank Asia has an agreement with the BangladeshEyeHospital to provide all costs of treatment for all born-blind children of Bangladesh.

(c)  Based on our commitment to protect the environment, Bank Asia took the pioneering role in financing CNG conversion facilities and CNG billing stations for automobiles.

(d)  In collaboration with an organization named D-Net, we are setting up Computer

Learning Centers close to all our rural branches – providing for both capital and recurring expenses.

(e)  Apart from lending directly for reduction of poverty, we have been collaborating with some large and small NGOs in creating employment opportunities through micro-finance and other types of lending and social welfare activities.

(f)  We patronize and encourage cultural activities, sports, in arts, and work on the lives of distinguished sons of the soil.

(g)  In the context of the two looks, and the SIDR cyclone in the coastal areas in 2007, your Bank contributed over 14 (fourteen) million taka to the Government’ Relief Fund.

Branch Expansion

The Bank at present carrying its banking activities through Thirty four Branches, including ATM, Locker & Foreign Exchange services in the country. It has nine rural branches as well.

   Branches At A Glance

 Authorised Dealer Branches

Rural Branches

Branches with ATM Service

Branches with Locker Service

 Departments

With the view to ensure systematic operation and to promote customer services of the bank, the following job allocations have been made among all the Officers which will come enforce with immediate effect.

Manager & Sub Manager

• Branch Operation as Sub-Manager.
• Custodian of Safe Key (Volt).
• Custodian of Securities relating to Loan & Advance Department.
• Supervision & preparation of Loan Proposals, Sanctions, Documentation, Disbursement, Recovery etc. with the consultation of Mr. Sarder Nazrul Islam, First Asstt. Vice President & Manager.
• Supervision of preparation and submission of all periodical statements relating to Loans & Advances Department, General Banking and others.
• Correspondence with Head Office & others.
• Custodian of Booklet of Authorized Signatures (BAL) & Test Key.
• Dealing In-Charge: Loans & Advances Department.
• Dealing In-Charge: Locker Operation.
• Custodian of all Corporate Office circulars/manuals/guide books/branch files etc.
• Maintenance of Printed & Security Stationeries & consumption thereof.

Foreign Exchange

• In charge Foreign Exchange Department.
• Joint Custodian of Safe Key (Volt).
• Processing of opening L/Cs,Lodgment of Documents, Issuance of EXP, Preparation of Export Documents, Issuance of Shipping Guarantee, Returns to Bangladesh Bank, Foreign Remittance, Marketing & Deposit Mobilization.
• Preparation of Loan Proposals, Sanctions, Documentation, Disbursement, Recovery etc. jointly with Mr. Sudev Biswas, Senior Officer & Mr. Milton Roy, Sub-Manager.
• Correspondence with Head Office & others.
• Dealing Officer Loans & Advances Department.
• Joint Custodian of all Security Stationary.
• Deposit mobilizing & marketing.

Credit & Loan

• Joint Custodian of Securities relating to Loan & Advance Department.
  • Preparation of Loan Proposals, Sanctions, Documentation, Disbursement, Recovery etc. jointly with Mr. Md. Rabiul Islam, Executive Officer.
  • Preparation of all periodical statements relating to Loans & Advances & others
  • Dealing Officer all types of Loans & Advances Department,

Accounts & General Banking

• Dealing In-Charge: Accounts & General Banking.
  • Checking of daily vouchers & posting in the voucher register.
  • Preparation of all periodical statements relating to General Banking, Accounts & others (SBS-01, SBS-02, Weekly Position, Bangladesh Bank Position etc.)
  • Issuance & Maintenance of T.T/ D.D/P.O.
  • Issuance & Maintenance of BASP/FDR/Other Special Deposit Schemes.
  • Regularization of all account opening forms.
  • Maintenance & vouchers passing against on line (Transfer) transactions.
  • Reconciliation of daily statement of Bangladesh Bank & Other Bank.
  • Passing of Monthly Salary/Bonus/Expenses/Provision vouchers etc.
  • Deposit mobilizing & marketing.

Cash

• Dealing In-Charge: Cash Department. (Supervision of receive, payment, sorting, stitching, posting etc.)
  • Joint Custodian of Safe Key.
  • Cash Remittance to & from Sonali Bank & Bangladesh Bank, Counting, Cash withdrawal & other relative works.
  • Preparation of daily cash position.
  • Preparation of all periodical statements relating to Cash Department & others (CTR, STIR etc.)
  • Maintenance & voucher passing against on line (Cash) transactions.
  • ATM Box Monitoring & Supervising.
  • Cash Receive/Payment. (Having necessary posting/passing).
  • Cash sorting, stitching, peasting etc.

Customer Service

• Clearing
• Bills both inward & outward.
• Issuance & Maintenance of T.T/ D.DlP,O.
• Issuance & Maintenance of BASP/FDRIOther Special Deposit Schemes.
• Account Opening.
• Issuance of Cheque Book.
• Regularization of all account opening forms.
• Preparation of all consumer credit scheme & attests with Mr. Sudeb Biswas as credit Assistant.
• Deposit mobilizing & marketing.

Teller.

• Clearing
• Bills both inward & outward.
• Issuance & Maintenance of T.T/ D.D/P.O.
• Issuance & Maintenance of BASP/FDRIOther Special Deposit Schemes.
• Account Opening.
• Issuance of Cheque Book.
• Regularization of all account opening forms.
• Credit Card & ATM Card issue, Monitoring, Supervising & Recovery.
• Deposit mobilizing & marketing.
• Locker Operation as assistance of Mr. Milton Roy.
• ATM Box Monitoring & Supervising.

Receptionist                                      

• Attending reception desk.
• Dispatch both inward & outward.
• Regularization of all account opening forms.
• Credit Card & ATM Card issue, Monitoring, Supervising & Recovery.
• Locker Operation as assistance of Mr. Milton Roy.

Performance

Foreign Exchange Remittance

International Division

Nostro Accounts: A bank who maintains the account with foreign bank is called the nostro account. It means our account with them. Suppose Bank Asia maintains an account with ICICI Bank Mumbai. This account is called the nostro account.

Financial institutions with which Bank Asia maintains account.

Balance with Other banks –Outside Bangladesh (Nostro Account)

As at 31 December 2008

301474087                                           278656222

Vostr’o Account: It means their account with us. If the foreign bank like ICICI Bank Mumbai maintains an account with Bank Asia Dhaka then this account is called Vostro Account.

Financial institutions which maintain an account with Bank Asia.

Foreign Exchange Operation

 Remittance of mounds:

With a network of their branches spread over the entire country banks are very suitable institutions for the remittance of funds from one place to another bank remittance are safe, swift, cheaper and simple.

 Inward and Outward Foreign Remittance:

The term “inward remittance” includes not only remittances received by SWIFT, IT NT etc. but also purchase of bills, traveler cheques etc. inward remittance in foreign currency comprises the following inflow.

I. Remittance received by drafts and mail transfer.

2. Remittance received by SWIFT/secured mail/web mail transfer.

3. Remittance received by telegraphic transfer and

4. Purchase of bills and travelers cheques.

 As per existing exchange control regulation in Bangladesh inward remittance equivalent to US dollar 2,000 and above, should be reported on prescribed from “From C”. Bangladesh bank has allowed to the effect that declaration in “From-C” will not be required by the beneficiary in Bangladeshi against any remittance sent by any Bangladeshi national working abroad. Therefore, the A/D branches, before disbursement or the remittance, shall obtain declaration from the beneficiary in a prescribed from “From-C”, where applicable.

 Payment of Drafts and Mail Transfer:

A. Before payment or any draft and mail transfer in foreign currency the A/D branch must observe the following procedures:

1. AID branch shall examine whether the draft/mail transfer has been properly drawn on them.

2. The signatures appearing on the instruments must be verified by the A/D branch.

3. A/D branch shall ensure that there is no alteration or tempering in the body of thc draft/MI’.

4. The A/D branch should also ascertain whether cover has been credited to the nostro account of the head office against such draft/mail transfer.

5. Conversion of the foreign currency into taka be made by applying rate of the bank

Before disbursement of any Authenticated mail/SWIFT/Telegraphic transfer received from foreign correspondent the A/D branch shall ensure that:

1. An authorized officer of the A/D branch has authenticated the test appearing in tile T.T. message.

2. The T.T. has been received through the mail/SWIFT/telex machine of the A/D Branch. After being satisfied on the ^authenticity of the instrument /1/D branch shall disburse the same.

4.1.4. Payment of Taka Draft Issued by Foreign Bank/Exchange Companies:

In the financial year 2005-2006, inward foreign remittance (wage earners) of taka = 3,22,75G.80 million was received in Bangladesh remitted by different banks and exchange companies the commercial banks in Bangladesh conclude taka drawing arrangements with different banks/exchange companies subject to prior approval of Bangladesh bank. The exchange companies, as per arrangements, draw taka drafts on the nominated branches of the banks Bangladesh. They remit cover of their drawings in US dollar/pound sterling through the new York/London correspondents as per arrangement for credit to the head office account of the banks in Bangladesh. The bank purchases such US/dollar/pound sterling cover fund and credits the taka proceeds to the taka account of the exchange companies maintain with the banks. Taka drafts issued by banks/exchange companies (located outside Bangladesh) are being paid by debit to the taka account of the exchange companies provided the instruments are found otherwise in order.

 Outward Foreign Remittance

All remittance from Bangladesh to a foreign country or local currency credited to non­resident taka account of’ foreign banks or convertible taka accounts constitute outward remittance of foreign exchange. Any person who wishes to purchase foreign exchange must lodge an application for the purpose on a prescribed from with an authorized dealer branch. There arc two types of application forms for outward remittance -“1MP from” and IM from”.

A. IMP from is designed to cover remittances for payment of import obligation.

B. TM from arc designed to cover all other types of remittances other than imports.

Outward remittance may be made only by the A/D branches by method appropriate to the country to which remittance is authorized. Most the outward remittances are approved by THC authorized dealer on behalf of Bangladesh bank due to delegation of authority by Bangladesh bank to A/D branches. Only a few remittances of special nature require Bangladesh bank’s prior approval.

On receipt of the application in the prescribed from, the authorized dealer branch may affect the sale of’ foreign exchange if they are empowered to approve the application on behalf of Bangladesh bank; otherwise prior approval of Bangladesh bank is to be obtained. If the transaction requires prior approval of Bangladesh bank, the form should be forwarded by the A/D branch to Bangladesh bank for consideration. The customers are not generally allowed to submit any application to Bangladesh bank directly. Onward remittance if favor of beneficiaries outside Bangladesh may be made in any of the following manners:

A. By issuing demand draft.

B. By Issuing Mail Transfer

C. By issuing SWIFT/Telegraphic Transfer

D. By issuing Travelers cheques for travel purpose

Other Outward Commercial Remittance Other Than Imports:

A/D branches are allowed to effect the following types of outward remittances without prior permission of’ Bangladesh bank subject to the fulfillment of formalities mentioned at chapter 16, 17, 18 and 19 of guidelines for foreign exchange transaction :

• Remittance of royalty and technical fee if it does not exceed 6 of cost of imported machineries.
• Remittance of profits of branches of foreign firm other than financial institutions.
• Remittance of profits of sterling Tea Estate Companies.
• Remittance of profit of banks, insurance companies and other financial institutions
• Remittance of subscription to foreign media service.
• Remittance of cost/fees for renter monitors.
• Remittance of membership fee of foreign professionals and scientific institutions for application, registration, admission, examination of TOEFL, SAT etc.
• Remittance of freight and passage collections by branches or agents of foreign airlines and shipping companies.
• Remittance of surplus carryings of foreign airlines and shipping companies.
• Remittances of surplus earnings of courier companies.
• Remittances against export claims (short weight claims, quality claim).

 Release of Foreign Exchange for Travel Abroad:

The At) branch may release the following amount of foreign exchange to ally 13,1nglaclc,tilt national for travel purpose during a calendar year as tinder :

A. For visit to SAARC member countries and Myanmar: if travel is made by road, yearly Quota is US $ 500 per person and if travel is made by air yearly Quota is US $ 1,000 (cash US $ 500 and balance in T/C).

B. For visit to other countries (other than SAARC countries and Myanmar) yearly Quota is US $ 3,000 per person. – cash US $ 500 and balance in T/C

But is both the cases (A and B above), cash FC notes up to US $ 200 can be issued by AD branch Without visa and cash FC notes up to US $ 500 be issued after production or visa.

Requirement:

A. Valid passport of the passenger with visa.

B. Confirmed air ticket.

C. T/M from duly filled in and signed by the passenger photocopy of the passport of the assignor, photocopy of the valid ticket Along with T/M from duly filled in and signed but the passenger will be retained by AD branch.

 Student Files:

Foreign exchange may be released by the Ads for admission and study by Bangladesh nationals in regular courses in recognized educational institutions abroad subject to verification of bonfires according to the following drill:

(A) Application and Required Papers:

i. . Application duly filled in

ii. Original and photocopy of admission letter issued by the educational institution in favor of thc student (such as the 1-20 in tile case of US institutions);

iii. Original and photocopy of estimate relating to annual tuition fee, broad and lodging, incidental expenses etc. issued by the concerned educational institution (1-2 in case of US institutions)

iv. Attested copies of educational certificates of the applicant; and

v. Valid passport.

(B) Examination and Processing by AD

i. After Scrutinizing the application and the supporting documents submitted the AD shall issue foreign exchange as per estimate furnished by the educational institution subject to adjustment with the travel entitlement. On application from the concerned student, expenses in transit not exceeding US dollar 200 or its equivalent in other freely convertible currency may be allowed out of travel entitlement described in Para I of chapter 19 of `Guidelines of Foreign Exchange Transactions, 1996, volumc-1′.

ii. In each case of sale of foreign exchange, the front page of the original letter of estimate/acceptance letter issued by the concerned educational institute should bear clearly tile round stamp of the foreign exchange issuing bank branch and also tile signature of the officer of the said branch.

iii. After verifying the original copies of papers referred to in Para 10(A) above, the foreign exchange issuing ADs would attest the photocopy thereof and preserve the same. Thereafter the original copies would be returned to the applicant.

iv. Foreign exchange payable to the educational institution should be issued in favor of the institution concerned in the form of TT/MT/Draft. If payment on account of board and lodging/ incidental expenses etc. are not required compulsorily to be in favor of tile educational institution, foreign exchange on these counts may be issued in favor of the student in the form of TC/Draft etc. Educational institutions sometimes require applications to send advance amounts for processing of applications; retention of seats etc, if the papers of the foreign educational institutions clearly state such requirement, advance remittance may be affected.

v. The facility of purchase o1’foreign exchange/ remittance will not be admissible for more than one academic year at a time.

vi. For each release of foreign exchange subsequent to the first release, then current progress report and current estimate of the educational institution should take into consideration. The Ads shall maintain separate file for each student with al relevant papers in readiness for perusal by inspecting officials of Bangladesh bank.

vii. All purchases of foreign exchange throughout the entire duration of a course of’ study pursued aboard should be from one AD bank branch. For any intended change in this respect, the relevant file shall be transferred direct to the concerned new AD branch on written request by the student. Under no circumstances should the file be tile handed over to the student

Traveler Cheques:

A traveler cheque is another instrument issued by banks for the remittance of money from one place to another. It is issued for the convenience of the traveling public. When a person wants to travel without taking the risk of carrying cash with him he may avail of tile facility of traveler cheques.

 Loss of Traveler Cheques:

A traveler cheque is encashable only when the payee countersigns the same in the presence of the paying banker. In case it is lost without his counter-signature, tile traveler cliques can not be encashed easily by the finder because to forge the signature of the payee in the presence of the paying banker is not any easy task. The banker refunds the amount such traveler cheque to its purchaser.

The purchaser of a traveler cheque may default in fulfilling his own duty to sign in the presence of the paying banker and thereby the cheque may be enchased by some one else. In an American case, Emerson vs. American express company the purchaser of .the traveler cheque countersigned them as against the rules and thereafter some of them were stolen and enchased. The purchaser sued the issuing banker for wrongly enchasing the clique. But the counter held that the purchaser had committed a breach of the contract with tile bank and the letter was not derelict in its duty for not sending notice of loss of such clique to every branch of the bank and other establishment. The purchaser’s claim against tile bank was, therefore, rejected. On tile other hand, if the signature of the purchaser on the traveler cheque is forged and payment has been made by the bank, it would be considered negligence on the part of the bank and it will be held responsible for tile same.

 Foreign Exchange Risk:

Foreign exchange risk arises from adverse movement of exchange rate when the Bank has positions in foreign currencies. It is defined as the deviation in earnings arising due to unfavorable changes in exchange rates. The Treasury Department, where foreign exchange is arises, has been restructured by operationally and physically segregated front office and back office. The department has also been equipped with better human and technical resources following the central bank guidelines

 Money Laundering:

A definition of what constitutes the offence of money laundering under Bangladesh law is set out in section 2 (‘Iha) of thc prevention of money laundering act 2002 (act No. 7 of 2002) which is reads as follows: “Money Laundering Means:­

(Au) properties acquired or earned directly or indirectly through illegal means;

(Aa) illegal transfer, conversion, concealment of location or assistance in the above act of the properties acquired or carried directly of indirectly through legal or illegal means;”

Another declination or Money Laundering under US law is, “… The involvement in any one transaction or series of transactions that assists a criminal in keeping, concealing or disposing of proceeds derived from illegal activities.”

 Why Money Laundering Done?

1.  Money represent tile lifeblood of the organization that engage in criminal conduct for financial gain because it covers operating, replenishes inventories, purchase the services of corrupt officials to escape detection and further the interests of the illegal enterprise, and pays for an extravagant lifestyle’s spend money in these ways, criminals must make tile money they derived illegally appear legitimate.

2. A trail of’ money from an offense to criminals can become incriminating evidence. Criminals must obscure or hide the source of their wealth or alternatively disguise ownership or control to ensure that illicit proceeds are not used to prosecute them.

3. File proceeds from crime often become the target of investigation and seizure. To shield ill-gotten gains from suspicion and protect them from seizure, criminals must conceal their existence or, alternatively, make them look legitimate.

Why we Must Combat Money Laundering?

1. Money laundering has potentially devastating economic, security, and social consequences. Money launderings a process vital to making crime worthwhile. It provides the fuel for drug dealers, smugglers, terrorists, illegal arms dealers, corrupt public officials, and others to operate and expand their criminal enterprises.

2. Money laundering diminishes government tax revenue and therefore indirectly harms honest taxpayers. It also makes government tax collection more difficult.

3. Money laundering distorts asset and commodity prices and leads to misallocation of resources.

4. One of the most serious microeconomic effects of money laundering is felt in the private sector. Money launders often use front companies, which co-mingle the proceeds of illicit activity with legitimate funds, to hide tile ill-gotten gains. These front companies have access to substantial illicit funds, allowing them to subsidize front company products and services at levels well below market rates.

5. No one knows exactly how much “dirty” money flows through the world’s financial system every year, but the amounts involved are undoubtedly huge. Tile international; money fund has estimated that the magnitude of money laundering between 2 and 5 percent of world gross domestic product, or at least USD 800 billion to USD 1.5 trillion. In some countries, these illicit proceeds dwarf government budgets, resulting in a loss of control of economic policy by governments. Indeed, in some cases, the sheer magnitude of the accumulated asset base of laundered proceeds can be used to corner markets-or even small economics.

6. Among its other negative socioeconomic effects, money laundering transfers economic power from the market, government, and citizens to criminals.

7. The social and political costs of laundered money are also serious as laundered money may be used to corrupt national institutions. Bribing of officials and governments undermines the moral fabric in society, and, by weakening collective ethical standards, corrupts our democratic institutions.

8. Nation cannot afford to have their reputations and financial institutions tarnished by an association with money laundering, especially in today’s global economy.

9. It is generally recognized that effective efforts to combat money laundering cannot be carried out without the co-operation of financial institutions, their supervisory authorities and the law enforcement agencies. Accordingly, in order to address the concerns and obligations of these three parties, these guidance notes were drawn up.

Money Laundering Risk:

In order to combat money laundering risk, Bangladesh Bank preached the awareness of money laundering issues across the country especially the rural areas and selected some banks for certain areas for spreading tile awareness. Bank Asia was selected for Kishoregonj district and the bank organized two-day long workshop where 83 participants from 80 branches of different banks participated. More manpower was shaped during the year within the Bank to strengthen the compliance system, and Branch Compliance Officers designated in all the branches are independently reviewing and verifying the account transactions to locate any suspicious transaction. An updated Anti Money Laundering Manual was prepared and distributed to all the branches. In addition, the Department began an audit on Anti Money Laundering compliance’s in the branches. Transaction profiles of our customers are embedded into the Stelar Online Banking Software which helps in preventing illegal transactions.

One of the important functions of the commercial banks in the world is to undertake import of merchandise into the country and payment of foreign exchange towards the cost of the merchandise to the foreign suppliers.

Un almost all the countries of the world there is import trade control in one form or the other which supervises the import into the country and controls certain items of exports depending upon national exigencies.

Bangladesh, the import of goods is regulated by the Ministry of Commerce in terms of the Import and Export (Control) Act, 1950; with Import policy orders issued biannually, and Public Notices issued from time to time by the Chief Controller of Imports and Exports (C.C.I&E).

According to tile Imports and Exports Act, 1950 as adopted in Bangladesh, any one willing to carry import business needs registration with the licensing authority, i.e., Chief Controller o1′ Imports and Exports (C.C.I&E) and its offices at the important trade centers of the country.

Foreign exchange department of national bank is one of the most important department of ail department this department handles various types of activities by two separate sections.

i. Import Section

ii. Export Section.

Import Section

The function of this section is mainly to deal with various components such as:

• Letter of credit (L/C).

• Payment against document (PAD).

• Payment against trust receipt (PATR).
• Load against imported merchandise (LIM).

The followin5 documents are required to be submitted the licensing authority for registration as importers.

1) Questionnaire form duly filled in and signed.

2) Income tax registration certificate.

3) Trade License from the Municipal or Local Authority.

4) Bank Certificate.

5) Nationality certificate.

6) Partnership Deed where applicable.

7) Certificate of Registration with the Register of Joint Stock Companies and
memorandum & Articles of Association in case of Private and Public Ltd. Co.

8) Certificate from the chamber of Commerce/ Registered Trade Association.

9) Ownership documents or rent receipts of the place of business.

10) Any other documents required under the relevant import policy.

The IRC is a security document issued under embossing seal and duly signed by the authorized officials of C.C.I & E and to be kept under safe custody. The IRC is required to be renewed every year on payment of usual fees.

 Licensing for Imports:

Most imports into Bangladesh require a license from the licensing authority. Commercial banks have been entrusted with responsibility of licensing imports in both industrial and commercial sectors.

The following documents arc required to be submitted by the importer to his banker for licensing:

1) The LCA form properly filled in quintuplicate signed by the importer.

2) L/C Application duly signed by the importer.

3) Purchase contract, i.e., indent for the goods issued by an indenture or Performa invoices as the case may be.

4) Insurance cover note.

5) Membership certificate from a recognized Chamber of Commerce and Industry or Town Association or registered Trade Association.

6) Proof of payment fees for the Import Registration Certificate.

7) A declaration, in triplicate, that the importer has paid income tax or submitted income tax return for the preceding year.

8) In case of public Sector, attested photocopy of allocation letter issued by the allocation authority, Administrative Ministry or Division specifying the source, amount, purpose, validity and other terms and conditions against the imports.

9) Any such documents as may be required as per instructions issued /to be issued by Chief Controller of Imports & Exports from time to time.

Registration of LCAF with Bangladesh Bank:

If foreign exchange is intended to be bought from the Bangladesh Bank against an LCAF it has to be registered with Bangladesh Bank’s Registration Unit located in the concerned area office of the CCI&E. For such registration the LCAF, duly filled in signed by the importer and authenticated by the Authorized Dealer, shall be submitted by the Authorized Dealer to the concerned registration unit.

The Authorized Dealers should ensure that this registration number of importers is a variably 1’urnished on IMP form. Where the importer is exempted from such registration, a suitable mention of this fact should be made on the IMP form.

After registration the original and duplicate copies of the LCAFs will be delivered to the authorized representatives of the Authorized Dealers. The triplicate and quadruplicate copies will passed on the concerned area office of the CCI&E and the quintuplicate will he retained by the Registration Unit.

Where no registration of LCAFs is needed, the Authorized Dealer will send the triplicate and quadruplicate copies to the concerned area office of the CCI&E, retaining the order copies with itself.

In no case the Authorized Dealers will accept authenticated LCAFs for opening L/C direct from the parties. Normally the Authorized Dealer issuing and authenticating an LCAF would also open the L/C but if it requires transfer to another Authorized Dealer this should be done directly by the transferring Authorized Dealer itself.

 Letter of Credit L/C:

L/C application form is a sort of an agreement between customer and bank on the basis of which of which letter of credit is opened. This is a printed form bearing stamps of prescribed amount in accordance with stamp act in force. It stipulates the conditions governing the letter of Credit, containing an understanding by the customer to make funds available in his account with the bank when bills would be presented under credit.

Jessore Branch

LC – Report (2008-2009)