NRB Remittance in Relation to General Banking in AB Bank Limited

NRB Remittance in relation to General Banking

A Study on AB Bank Limited

AB Bank Limited, the first private sector bank is incorporated in Bangladesh on 31^st December, 1981 as Arab Bangladesh Bank Limited and started its operation with effect from April 12, 1982. And now it is known as one of the leading bank of the country since its commencement 28 years ago.

Since its inception is keeping economic contribution and serving a huge number of people, as the part of my internship requirements I had chance to drill with various banking services. This report is a clustered format of ABBL’s overall innovative banking services. In the report entitled “NRB Remittance in relation to General Banking: A Study on AB Bank Limited”-have tried exclusively to emphasize on ABBL’s NRB remittance as well as general banking activities elaborately.

The first part, of this report deals with introduction that present the origin, objective, methodology, scope and limitation of the report. In order to understand the banks on which the report is carried on. Here I described about why I have to make this report, different aspect of ABBL, the way I have collected data about ABBL and after collecting all data and blend with my experience by working there for three months, it was possible for me to complete this report.

In the second part, you will get an organizational overview of AB bank limited. This report contains historical background of ABBL. A brief description about it’s journey in banking industry and a little bit about it’s management. Then it enumerates ABBL’s short run goal, long term goal, and current target under the point of its mission, vision and objectives part. Then I have elaborated analysis upon ABBL’s situation based on it performance. Next the organ gram chart it will clarify about the hierarchy of its organization, top to bottom position of the employees and boss. Lastly I have shown different types of products or services which it offered to its claim.

In the third part, it focuses on general banking activities and learning part. General banking is the starting point of all banking operations. It is the department which provides day-to-day services to the customer. It opens new accounts, remit funds, issue bank drafts and pay orders etc.

In the fourth part, it focuses on NRB remittances services existing in ABBL and its performance and operational methods. Different services of remittance (Western Union, RIA, AFX Fast Remit, Turbo Cash, Instant cash, Cash Express, X-Press Money, etc), its requirements of collecting and sending money, the company history, mission and vision, service criterion, company management etc are broadly discussed in this part of the report. The economic impact and banking contribution on NBR Remittances are also discussed in this part.

In the fifth part, the report explains the strong bondage and relationship among the NRB remittance services and operational activities and general banking activities of ABBL. The process of activities, services, requirements relating to the every single activity of general banking and NRB remittances are described in this part.

In the sixth and seventh part, it deals with findings and recommendations. To find the answers of the related queries, there needs an intensive observation and follow up. I try to work on evaluating the general banking as well as the overall activities of every section of the branch. I have tries to make the comparative analysis of ABBL along with the other banks. In ABBL, throughout the 3 months, several officials and related officers have helped me finding and solving the related queries and confusions. Some secondary sources are also worked in it and helped in making the bank’s and branch’s SWOT analysis. The founded problems and its relevant solutions that I have worked on are written down briefly that will help the bank as well as its Dhanmondi branch for further better performance.

In the eighth part, I have written down an overall brief discussion on this report as a conclusion blessing the best to the bank and its associates.

Background of AB Bank Limited

AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st December 1981 as Arab Bangladesh Bank Limited and started its operation with effect from April 12, 1982.

AB Bank is known as one of leading bank of the country since its commencement 28 years ago. It continues to remain updated with the latest products and services, considering consumer and client perspectives. AB Bank has thus been able to keep their consumer’s and client’s trust while upholding their reliability, across time.

During the last 28 years, AB Bank Limited has opened 77 Branches in different Business Centers of the country, one foreign Branch in Mumbai, India and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. To facilitate cross border trade and payment related services, the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of the World.

In spite of adverse market conditions, AB Bank Limited which turned 28 this year, concluded the 2008 financial year with good results. The Bank’s consolidated profit after taxes amounted to Taka 230 cr which is 21% higher than that of 2007. The asset base of AB grew by 32% from 2007 to stand at over Tk 8,400 cr as at the end of 2008.

The Bank showed strong growth in loans and deposits. Deposit of the Bank rose by Tk. 1518 cr ie., 28.45% while the diversified Loan Portfolio grew by over 30% during the year and recorded a Tk 1579 cr increase. Foreign Trade Business handled was Tk 9,898 cr indicating a growth of over 40% in 2008.

The Bank maintained its sound credit rating in 2008 to that of the previous year. The Credit Rating Agency of Bangladesh Limited (CRAB) awarded the Bank an A1 rating in the long term and ST-2 rating in the short Term.

AB Bank believes in modernization. The bank took a conscious decision to rejuvenate its past identity – an identity that the bank carried as Arab Bangladesh Bank Limited for twenty five long years. As a result of this decision, the bank chose to rename itself as AB Bank Limited and the Bangladesh Bank put its affirmative stamp on November 14, 2007.

The Bank decided to change its traditional color and logo to bring about a fresh approach in the financial world; an approach, which like its new logo is based on bonding, and trust. The bank has developed its logo considering the contemporary time. The new logo represents our cultural “Sheetal pati” as it reflects the bonding with its clientele and fulfilling their every need. Thus the new spirit of AB is “Bonding”. The Logo of the bank is primarily “red”, as red represents velocity of speed and purity. Our new logo innovates, bonding of affiliates that generate changes considering its customer demand. AB Bank launched the new Logo on its 25th Anniversary year.

AB Bank commits to nation to take a lead in the Banking sector through not only its strong financial position, but also through innovation of products and services. It also ensures creating higher value for its respected customers and shareholders. The bank has focused to bring services at the doorstep of its customers, and to bring millions into banking channels those who are outside the mainstream banking arena. Innovative products and services were introduced in the field of Small and Medium Enterprise (SME) credit, Women’s Entrepreneur, Consumer Loans, Debit and Credit Cards (Local & International), ATMs, Internet and SMS Banking, Remittance Services, Treasury Products and Services, Structured Finance for Corporate, strengthening and expanding its Islamic Banking activities, Investment Banking, specialized products and services for NRBs, Priority Banking, and Customer Care. The Bank has successfully completed its automation project in mid 2008. It envisages enabling customers to get banking services within the comfort of their homes and offices.

AB Bank has continuously invests into its biggest asset, the human resource to drive forward with its mission “to be the best performing bank in the country.” The bank has introduced Dress Code for its employees. Male employees wear designed ties and females wear Sharee or Salwar Kamiz, all the dresses are consisted with the unique AB Bank logo.

AB is recognized as the people’s choice, catering to the satisfaction of its cliental. Their satisfaction is AB’s success.

Objectives and Goals:

ABBL’s main objective is to maximize profit through customer satisfaction, which very much reflexes the idea of marketing concept. Its objective is to remain objective. The bank will support al constructive reforms that are in the national interest and encourage more competition and choice for the people. besides investment in trade and commerce, the bank will participate in the socio economic development of the priority sectors like agriculture, industry, housing and self employment in the country. It also wants to ensure high return on investment, sound growth and profit and service with different service products.

Strategic priorities of ABBL in 2009

Amid the backdrop of regulatory and economic situation of 2009, bank set the strategic priorities in pursuit of its own business goals:

Maximizing diverse business platform reach.
Reap benefit with expansion of corporate business base through “nurturing” of existing clients while propagating the growth strategy.
Diversification of business into SME, and retail while aligning with regulatory priorities.
Re-emphasizing on service delivery.
Aligning operational procedures, information systems towards business goal achievement and service delivery.
Maintaining adequate Capital to support growth and also to remain compliant.
Development of risk culture and also impart corporate governance with a view to bring professionalism, transparency and accountability.
Enhance AB’s image as a corporate citizen through compliance and focus on value driven CSR.
Ensuring Shareholders’ Value creation.

ABBL’s Corporate Social Responsibilities

In recent times, CSR is receiving increasing attention in the business world, government policies, industry events, advertising space, and other arenas in these parts of the world. Although the concept of CSR may have been formally introduced through to the financial sector of Bangladesh in 2008, chiefly by Bangladesh bank however, in similar approach, the local banking community has been involved in benevolent activities. AB, which has remain a responsible member of the society seems its journey that begun 28 years back, has indeed duly played its societal role of business. AB, however, feeling the need to carry out its social responsibilities in a more organized way, formed Arab Bangladesh Bank Foundation (ABBF) in the year 2003, which eventually became the vehicle for specific program oriented CSR activities of the bank.

AB conducts it CSR in 2 ways- policy driven and through direct participation in specific programs. However, AB intends to adopt CSR practices, more in the formal and structured manner in light of the Bangladesh bank guidelines for mainstreaming CSR practices in the financial sector. Future efforts of the bank in respect of CSR will include more involvement of its stakeholders in terms of their expectations and needs in order to incorporate more responsible business practices in all of bank’s functions and operations with a goal to fulfill social, economic, environmental, and ethical responsibilities of the bank.

Total involvement for CSR activities stood at tk. 1.77 crore at the end of the year 2009. AB channelized this CSR outlay in diverse areas judging from need and importance it attaches to the bank’s perspectives.

ABBL believes that CSR is first and foremost a commitment to contribute to the society for improving the quality of lives of its people, particularly for that segment of the people who are under privileged and less fortunate in terms of basic needs such as food, health, education, housing etc and also alongside to remain a sincere benefactor of the country’s rich heritage of arts, culture and sports. Besides addressing the basic social needs of the country, AB also believes that CSR can be a genuine platform to address growing environmental concerns, more even when Bangladesh is likely to be the most affected country in the world due to climate change caused from the irresponsible and unrestricted carbon emissions by the western developed nations, a dreadful fact acknowledged by the world leaders in the Copenhagen Climate Summit held in December 2009.

AB has always tried to respond to the changing needs of the society and stood besides the affected one’ sin times of crisis of the world, be it a natural disaster or tragedies taking place through immortal act of man. In the past, ABBF participated in disaster relief operations for the landslide victims in Chittagong, SIDR affected people of the coastal areas and for the flood affected people across the country. Bank also ran a media campaign for SIDR Rehabilitation Program at that time which later won the “Best TVC Jury Award” from Bangladesh Journalist Association. ABBF donated a substantial amount to Bangladesh Organization for Disabled Advancement (BODA) for making the disabled blinds self-reliant and skilled through a special training called “Applied ICT”. AB also made donations to organizations like “Wahidul Haque Karmo Parishod” and to “Monir Smriti Sangsad”. AB’s CSR activities also included contribution of the treatment of prominent cultural artist, donation for procurement of training, room equipment for the DSE training academy, etc besides regular sponsoring in different publications in the form of advertisement which are not widely circulated but regarded as sincere efforts for the benefit of the society is also viewed by the bank as a part of its CSR activity. The bank also ran and awareness campaign in a private radio station for creating awareness among the general public about the bad impact of money laundering in local economy. The awareness campaign was a unique idea undertaken by AB that received acclaimed, had a daily broadcast for 6 months as a stretch on “Radio Today”. Recently, ABBL has awarded “International Quality Summit Award-2010” in Platinum Category and “Certificate of Merit” for best published accounts and reports 2008 in the 9^th ICAB National Awards for their great contribution in banking sector and economy of Bangladesh.

Some CSR activities of ABBL are given in the followings:

Standing beside the families affected by BDR tragedy.
Warm clothes/blanket distribution to the affected underprivileged and destitute people.
Donation to Bangladesh Organization for Disabled Advancement (BODA).
Support to Cancer Care Center.
Caring for the Environment.
2^nd AB Bank- IUT national ICT festival 2009.
Patronization of sports (2^nd AB Bank Cup Golf Tournament, ABBL Summer Cup Golf Tournament, ABBL Siraj Smriti Cricket Tournament)
Health and Safety of employees.
Other sponsored events (National Fish Week 2009, 18^th National Vaccination Day, ADHUNIK-Amra Dhumpan Kori Na, Guni Lekhok Award Giving Ceremony, National Arts Festival/Exhibition, Bangla Academy Boi Mela 2009)

Business Continuity Plan (BCP)

Business continuity plan is the creation and validation of the practiced logistical plan for how an organization will recover and restore partially or completely from the interested critical (urgent) functions within a predetermined time after a disaster or extended disruption.

Scope:

BCP is intended for use by the Staff of Head Office Division and Departments and Branches of ABBL.

The plan provides a framework for business continuity in the event of any major incident taking place, causing serious disruption to the Bank’s premises. The plan has been formulated to serve in the following eventualities:

Loss of or loss access to, critical buildings (including utility failure).
Non-availability of personnel.
Loss of systems or services (critical e-commerce failure).

Objectives:

To ensure that the bank’s business activities can be carried out at home or from some other location.
Provide alternative arrangement when working at home is not practical after a length of time.

Key features:

Documents design for each departments of head office and branches with action plan.
Immediate actions during office hours and outside office hours.
Plan activation procedures.
One day plan.
Longer recovery plan.
Recovery site details.
Alternative processing for branch business activities.
Key resources allocation plan.
Emergency resources (office, computer and special equipment).
Archiving sensitive information.
Emergency information lines.
Stand down and documentation.

SWOT Analysis of ABBL

Bank is a financial, trusted, service oriented and profit earning institution. The primary function of a banking company consists of accepting of deposit for the purpose of lending or investment, considering the priority sectors to boost up the national economy. The deposited money should be repaid to the depositor on demand by cheque, draft or other wise but nor merely verbal order. To collect deposit and lending bank has to establish relationship with the customers and to conduct banking business some operational procedures must be followed as per guideline of supervisory authority, i.e. Bangladesh Bank.

AB Bank Limited conducts all types of commercial banking operations. The core business of the bank comprises of trade finance, term finance, working capital finance, and corporate finance. The bank is also providing personal credit, services related to local and foreign remittances and several products and services. The scheme of the bank which is designed to help the fixed income group in raising standard of living is competitively priced and has been widely appreciated by the customers.

The bank has achieved success in all sectors and the achievement has been possible because of the able leadership, dedicated and committed services provided by all levels of management and staff and all the trust and confidence that the valued client had reposed in the bank.

ABBL is the first generation private commercial bank in the country with commendable operating performance. Directed by the mission to provide prompt and efficient services to clients, ABBL has successfully celebrated its wide range of commercial banking services. The bank has achieved success among its peer group with its professional and dedicated team of management having long experience, commendable knowledge and expertise in convention with modern banking.

GENERAL BANKING ACTIVITIES

The division of general banking plays an important role in all commercial banks. It’s mainly a liability side. ABBL facilitates sections and facilities of general banking. The general banking sections and its activities are given in the followings:

Account opening department.
Account opening formalities.
Cash department.
Local remittance
Customer service officer desk.
Locker service.
Financial Control Department (FCD),
Clearing department.
ATM/Card division.
Foreign remittance
Sonchoypotro/ Investment department.

Account opening department

To know about account opening department, first it is necessary to gather knowledge about different types of accounts available in ABBL-

Current account
Savings account
Short notice deposit account
Fixed deposit account
Sole proprietorship account
Limited company account
Partnership account

Current account:

Current account can be opened by both individual and business concerns. Frequent transactions are allowed and payable on demand. No interest is allowed in current account.

Savings account:

This type of account is generally opened by individuals for savings purpose. Interest is allowed per annum as per norms and is credited on half yearly basis. There is some restrictions in operation in savings account, i.e. cannot withdraw more than one fourth of the balance subject to tk. 25,000 and minimum balance is kept. At present AB Bank Limited interest rate 7.50% and allowed on the lowest balance of the month.

Special notice deposit account:

Usually such accounts are opened by the sector corporation, companies, NGOs and financial institutions. In such account prior notice is required to transfer or withdrawal of balance and short notice may be 7/15/21/30 days as per agreement. Interest is allowed less than saving account normally on daily product.

Fixed deposit account:

Bank accepts deposit on tern basis, i.e. 3/6/12 months and 2/3 years. On maturity it is encashable or renewable. As per banking norms period wise fixed interest is allowed. In AB Bank Limited, if FDR is encashed before maturity, rate of interest is applied in savings account rate if it is covered 30 days at least.

Account opening formalities

In all accounts, account opening forms, personal information, KYC, ETC, risk grading is required. Introduction by an account holder and two photographs are required. ETP is not required for FDR. To proof of identification of the person, the followings are required-

Application of the prescribed form.
Furnishing photographs.
Introduction by an account holder.
Putting specimen signatures in the specimen card.
Mandate, if necessary.

Application form for savings & current account:

Following are the contents of the application form for opening savings or current account in ABBL-

Type of the account
Name of the applicant(S)
Father’s /husband’s name
Mother’s name
Present address
Permanent address
Number, date of issues, date of expiry & place of passport (if any)
Date of birth
Nationality
Occupation
Nominee(S)
Special instruction for operation of the account (if any)
Initial deposit
Specimen signature(s) of the applicant(s)
Introducer’s information (name, account number, specimen signature)
National ID Card

In case of partnership account:

The following formalities along with the documents are to be complete before opening an account-

Bank’s prescribed account opening application form signed by partners.
Certified copy of partnership deed/agreement
List of partners with address.
Extract of resolution of the partners meeting.
Copy of valid trade license.
Photograph of the signatories/partners.
Specimen signature card signed by signatories.
Introducer’s signature in the account opening form and at the back of the photographs of the account holder.
Identity of all partners must be verified in line with the requirements for personal customers. Where a formal partnership agreement exists, a mandate from the partnership authorizing the opening of an account and conferring authority on those who will operate it should be obtained.
Evidence of the trading address of the business or partnership should be obtained and a copy of the latest report and accounts.
An explanation of the nature of the business or partnership should be ascertained to ensure that it has a legitimate purpose.

Sole proprietorship account:

Bank’s prescribed account opening application form.
2 passport sized photograph of the proprietor attested by the introducer.
Specimen signature card.
Copy of valid trade license issued by local government authority (city corporation, union parishad, pouroshova, etc)
Permission from Bangladesh bank.
TIN issued by income tax authority.
The personal identity of the proprietor of the firm has to be established by any of the documents as mentioned in individual or joint customer category. Trade license carries the photo and signature of the proprietor is required.

Limited company account:

Bank’s prescribed account opening application form.
Certified copy of the memorandum and articles of association of the company.
Certificate of incorporation.
Certificate of commencement of business (for public limited companies only).
Extract of the board resolution sanctioning the account opening and signing authority.
List of the director with address in form-XII.
Photograph of the signatories.
Copy of valid trade license.
Introducer’s signature in the account opening form and at the back of the photograph of the applicant.
List of names with appointment letter and specimen signature of the persons authorized to operate the account.

Non-government college, school, madrasa, muktab:

Up to date list of the governing body managing committee.
Copy of resolution of the governing of the account duly certified by gazette officer.

Minor’s account:

Putting the word “MINOR” after the title of the account.
Recording special instruction of operation of the account.
The account opening form is to be filled in and signed by either of the parents or the legal guardian appointed by the court of law and not by minor.

General condition maintaining while opening an account in ABBL (savings/current/others):

Minimum balance to be maintained in current account tk. 5000 and in savings account tk.10000.
A suitable instruction by an introducer acceptable to the bank is required prior to opening an account.
Recent photographs of the account openers duly attested by the introducer must be done.
Interest rate for savings account 7.50% (half yearly compounding).
When cheque deposited are payable by other bank or outstation, they are available after collection or clearing only. Service charge will be charged @ tk.100 in current account and tk.100 in savings account yearly or as charged by the bank from time to time as and when required.

General functions of Account Opening department:

Account open
Cheque book requisition
Cheque book issuance
Cheque book delivery
Account transfer if needed
Balance settlement
Locker maintenance
Information up gradation
Registering and filing all related documents of account opening department
Daily voucher preparation and submission of daily updates to the management or assigned authority.

Cash department

The main function of cash department is to accept cash from the customer for credit into their account and pay cash through cheque payment verifying the signature of the client without negligence. Receipt and payment are made through computerized system. There is teller’s proof sheet where every teller mentioned receipt and payment separately with account number and cheque serial number duly initiated by the teller and head teller jointly. Cash received by the teller using received stamp seal with teller number and voucher passed by the head teller. The teller paid cheque within their delegation and beyond their delegation cheque is passed jointly with head teller. Head teller passed cheque beyond delegation with the operation manager jointly. After posting of debit and credit vouchers, it is checked by the officer whether posted correctly and confirm with the signature. After closing of days transactions, all the tellers transfer the cash on hand to the head teller and head teller maintain reserve cash with the previous cash in vault if any.

Cash transaction reporting:

In every month as per Bangladesh bank instruction cash deposit and cash withdrawal above tk. 7,00,000 in any account is reported to Bangladesh bank through head office through online.

Suspicious transaction:

If the head teller or any other teller detect suspicious or unusual transaction in any account is to be reported to BAMLCO.

Local Remittance

Bank has branches throughout the country and therefore, they serve as best medium for remittance of funds from place to another. This service is available to both customer as well as noncustomers of the bank.

Bank draft or Demand draft (D.D)
Telephonic transfer (T.T)
Pay Order (P.O)

Bank draft or Demand draft (D.D):

A bank draft is an unconditional order issued by one branch of a bank on another branch to pay certain amount of money to the named person or order on demand. Hence, a bank draft is always payable on demand. It is always known as demand draft (D.D).

Characteristics:

It is drawn by one office of a bank upon some other office of the same bank.
It is payable on demand.
Its payment is to be made to the person whose name is mentioned therein or according to his order. In other words, it cannot be made payable to the bearer.

Telephonic transfer (T.T):

This is a mode of transfer of customer’s money from a branch of one bank to another branch of the same bank or a branch of another bank through telephonic message.

Characteristics:

Issued by one branch to other branch and message is telecommunicated.
Transfer of money is through tested tele-message.
Remittance is affected on the basis of tested message.
Test key apparatus is required.

Pay Order (P.O):

This is an instrument issued by branch of a bank for enabling the customer to pay certain amount of money to the order of a certain person or organization within the same clearing house area of the pay order issuing branch.

Characteristics:

The issuing branch and the paying branch are same. In online banking, it is payable to all branches of ABBL.
Application for payment within the clearing house area of the issuing branch.
This may be open or can be crossed.

Though ABBL has the online banking service, D.D & T.T is not so much popular in remittance and not widely used in now a day, while pay order is widely used and very popular remittance service to transfer funds to different branches of the bank.

Fixed Deposit Received (FDR):

Characteristics:

Interest should be charged on only interest earned.
Excise duly should be charged on only in a year.
Charge range.

Documents required for issuing FDR:

Bank account is not necessary in this case.
2 copy photo both FDR holder and nominees.
Documents required for proper identification.
Declaration of sources of fund.
If any account maintained then the payment will be transferred to the client’s account.
Debit advice is issued for this purpose.

Customer service officer desk

To match customer’s needs, bank introduced customers’ service officer desk in the branches in 2008, which aimed at taking the customer care to a new level. The concept of CSO desk is initially been introduced at 14 branches of the bank, Dhanmondi branch is one of them.

Customer Services activities are-

New Cheque Book
Lost Cheque Book
Lost Credit / Debit Card
Account Opening
Address Change
Signature Change
Account Closing
Account Transfer

Locker Service

Safe Deposit Locker Services are extended by the bank to the clients of selected branches as decided by head office from time to time. These branches are equipped with the required safe deposit lockers for hiring out to the clients.

The facility is extended only to the valued clients maintaining account in the branch of the bank, who agree to abide by the set rules and regulations governing the use and operations of the locker. Following general guidelines should be complied by the branch:

No information about the renting of lockers, mode of operation or visits made by lease/renters must be divulged except with the clear consent of the lease/renters and or when compelled by the law.
The specimen signature cards and all other books and records in the vault should be kept under the lock and key outside business hours.
A torch/ electric charger/candles should be kept ready for use in the vault in case of electricity failure unless an alternative generator IPS is already installed in the branch.
It is desirable that staff posted to the locker are adequately senior to understand the responsibility attached to the work involved and that they are rotated periodically.
Branch staff should not rent a locker jointly with persons other than the members of his/her family. When a locker is let out to the manager with or without his family members he should report to this to head office, other offices should report to the branch manager.
There must always be adequate arrangements for guarding the vault. The branch must ensure the security alarm is properly operated and serviced.
Whenever legal issues are involved, e.g. in the event of death of the lessee/renter, issuance of prohibitory orders etc. legal requirements and practice must be followed. Branches are advised to obtain specific advice from legal advisors and take appropriate action as per head office guidelines.
The bank may also forcibly open any locker with prior approval of head office after giving due notice to the lessee, if the locker rent/any other charges due to the bank remains unpaid for a period of 2 years or if the bank terminates the lease and the key is not surrendered to the bank, after the expiry of 6 months from the date of mailing the notice of termination. Such forcible opening of a locker should be done in the presence of a magistrate and an inventory of the contents therein shall be made in his presence which should be signed by the authorized officer of the branch and duly counter signed by the magistrate with date. In case of forcible opening due to default in payment of annual rental, the matter should be referred to head office prior to forcible opening.

Financial Control Department (FCD)

Financial control department is called as the center of the bank. In banking business transaction are done every day is their transaction are to be recorded properly and systematically as the banks deal with the depositors money. Any deviation in proper recording many hamper public confidence and bank has to suffer a lot otherwise. Improper recording of transaction will lead to the mismatch in the debit side and the credit side. To avoid these mishaps, the bank provides a separate department, whose function is to check the mistake in passing voucher in wrong entries or fraud or forgery. This department is called Financial Control Department (FCD).

Main functions of FCD are-

Daily position
Weekly position
Daily extract
Salary
Budget
All work related human resources department
All work related general service and security procurement
Leave, personal file update
All voucher related expense
Provision
Depreciation
Amortization
Solvency certificate
Bank statements
Deposit held by sector corporation
Monthly statement of adjustment and unadjustments
VAT statements
Utility statements
Statement instructions
Store management

Clearing department

This is an arrangement by the central bank where everyday the representatives of the member banks gather to clear the cheque. The place where the banks meet and settle their dues is called the clearing house, sits for 2 times a working day.

2 types of cheques occurs in clearing department-

Bank receipt cheques or instruments of other banks from the customer for collection for credit into their account are called outward clearing cheques.
Bank also received cheques or instruments presented by the other bank drawn on the branch for payment is called inward clearing cheques.

Functions:

Pass outward instruments to the clearing house.
Pass inward instruments to respective departments.
Return instruments in case of dishonor.

Clearing procedure is maintained through head office by the bank.

If the instruments are dishonored then the instruments are returned to the concerned branch. The reasons for dishonoring cheques are-

Account closed.
Insufficient fund.
Non-arranged stopped.
Refer to drawer.
Effects not cleared may be presented again.
Amount in words and figures are different.
Drawer’s signature is different, etc.

Receiving cheques for collection:

In ABBL, cheques of customers are received for collection from other banks. In case of receiving cheques, following points should be checked very carefully-

The cheque should not carry an older date then the receiving date for more than 6 months. In that case, it will be stale cheque, and will not be allowed for collection. Again the date of the cheque should not be more than 1 day forwards than the receiving date.
The amount in figure and words in both sides of the pay-in-slip should be same.
The cheque must be crossed.
The endorsement is done by putting signature of the drawer on the back of the negotiable instrument for the purpose of the negotiation by bearer.

ATM/Card department

Q-Cash:

ABBL is the first private bank which introduced ATM card to its honorable customers. Our ATM card is smart card based solution and it can independently used in ATM network to give 24 hours service to the customers and considering their expenses. This ATM network is prepared by different banks-

AB Bank Limited,
The City Bank,
Janata Bank,
IFIC Bank,
Jamuna Bank,
Mercantile Bank, are among this network.

ATM customers can use any of these bank booths. ABBL is working as the settlement bank of this network. At present, customers are getting service from 40 ATM locations of Dhaka, Khulna, Sylhet, Rajshahi, Rangpur and Chittagong.

Benefits:

24 hours service
Cash withdrawal advantage
Shopping
Payment of various bills
Balance information
Current transaction information
Money deposit facility

Foreign Remittance

The basic functions of this department are outward and inboard remittance of foreign exchange from one country to another country. In the process of providing this remittance service, it sells and buys foreign currency. The conversion of one currency into another takes place at an agreed rate of exchange where the banker quotes for buying and selling. In such transactions the foreign currencies are like any other commodities offered for sales and purchases, the cost being paid by the buyer in home currency, the legal tender.

Functions of this department:

Overall supervision of foreign remittance.
Foreign TT payment and purchase of foreign drafts.
Preparation of foreign bill purchase (FBP).
Issuance of outward TT and FDD.
Issuance of proceed responding certificate (PRC).
Foreign collection, Bangladesh bank clearing cheque collection that comes from all the branches of ABBL.
Withdrawal from FCA account.
Encashment of TC and cash dollar and sterling pound.
Deduction of tax and VAT on behalf of Bangladesh bank.
Preparation of related statements including convertible taka accounts.
Balancing of account statement.
Compliance of audit and inspection.
Preparation of IBCA and IBDA and balancing of collection and other special assignment as desired by department in charge.

Inward foreign remittance:

Inward foreign remittance covers purchase of foreign currency in the form of foreign TT, DD, MT, Bills etc sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported to exchange control department of Bangladesh bank prescribing 2 forms-

EXP form: Remittances received against export of goods from Bangladesh are done by this.
Form C: Inward remittances equivalent to US$ 2000 and above are done by this. Here, the remittance recipient declares the purpose of fund.

Outward foreign remittance:

Outward foreign remittance covers sales of foreign currency through issuing foreign TT, Drafts, Travelers’ Cheque, etc as well as sell of foreign exchange under L/C and against import bill retired. 2 forms area used for outward remittance of foreign currency are-

IMP Form: All outward remittance on account of imports.
TM: For all other outward remittances.

Background of NRB Remittance

Migrant remittances represent the most direct, immediate and far reaching benefit to migrants and their countries of origin. They are a more constant source of income to developing countries than official development assistance, foreign direct investment and other private flows. Moreover, the emergence of remittances as a new strategy for poverty alleviation in developing countries has spurred multilateral institutions, international organizations, and national governments, among others, to seriously study, identify and implement measures on how these inflows could be maximized and then harnessed for the development of migrants’ countries of origin.

The term “remittances” basically refer to the transfers, in cash or in kind, from a migrant to household residents in the country of origin. The IMF considers a wider definition and incorporates three categories, that is, a) workers’ remittances or transfers in cash or in kind from migrants to resident households in the country of origin, b) compensation to employees or the wages, salaries and other remuneration, in cash or in kind, paid to individuals who work in a country other than where they legally reside and c) migrant transfers which denote capital transfers of financial assets made by migrants as they move from one country to another and stay for more than one year. As stated in the BOP Manual (5th edition, 1993): “Workers’ remittance covers current transfers by migrants who are employed in new economies and considered residents there. (A migrant is a person who comes to an economy and stays, or is expected to stay, for a year or more). Workers’ remittances often involve related persons. Persons who work for and stay in new economies for less than a year are considered non-residents; their transactions are appropriate mainly to the component for compensation of employees.” The Nepal Rastra Bank (NRB), the country’s central banking authority, follows the IMF Manual in recording remittances or migrant transfers in its BOP computation.

Since the end of the 1990s, there has been a renewed interest in the financial resources that migrants send back to their countries of origin due to the potential contribution to the economic development of the receiving regions. It is generally acknowledged that foreign remittances, whether channeled through formal or informal modes from host countries to receiving countries, contribute positively towards the economic development both at the household level and country level, although remittances through formal channels are more amenable to policy interventions and are generally believed to have greater developmental impacts.

Trends and impact

International migrant remittances have become an important source of external finance in developing countries. In nominal dollar terms, recorded remittances sent home by migrants from developing countries are expected to reach $283 billion in 2008, a rise by 6.7 percent from $265 billion in 2007. This amount, however, reflects only transfers through official channels. Econometric analysis and available household surveys suggest that unrecorded flows through informal channels may add 50 percent or more to recorded flows. Including these unrecorded flows, the true size of remittances is larger than foreign direct investment flows and more than twice as large as official aid received by developing countries.

Remittances can generate a positive effect on the economy thorough various channels such as savings, investment, growth, consumption, and poverty and income distribution. At the national level, remittances contribute significantly to GDP. Remittances can also contribute to stability by lowering the probability of current account reversals. Since they are a cheap and stable source of foreign currencies, remittances are likely to stem investor panic when international reserves are taking a downward trend or external debt is rising.

At the community level, remittances create multiplier effects in the domestic economy, producing employment opportunities and spurring new economic and social infrastructure and services, especially where effective structures and institutions have been set up to pool and direct remittances. Where these have been set up and encouraged, and where the state is cooperative, remittances can bring about a change, especially in remote rural areas.

Remittances have been found to rise when the recipient economy incurs a downturn in activity or macroeconomic shocks owing to financial crisis, natural disaster, or political conflict. By making up for foreign exchange losses due to these shocks, remittances may smooth consumption and thus play a part in maintaining the economic stability of recipient countries.

The poverty reducing and income distribution effect of remittances is also significant. This case is based on the fact that the recipients of remittances are often low-income families whose offspring left the country to work abroad.

Remittances assist in augmenting national income by providing foreign exchange and raising national savings and investment as well as by providing hard currency to finance essential imports hence curtailing any BOP crisis. Since they bear no interest, do not have to be repaid, and their utilization is not tied to specific investment projects with high import content, they have a more positive effect on BOP than other monetary flows such as direct investments or loans.

In many countries, a large portion of remittances are invested in real estate, demonstrating both a desire of migrants to provide housing to families left behind and a paucity of other investment instruments in the recipient. Whether remittances are utilized for consumption or purchasing houses, or other investments, they produce positive impact on the economy by stimulating demand for other goods and services.

Some studies have illustrated that remittances can have a deleterious impact on national economic growth in the medium and longer term. Remittances can fuel inflation, disadvantage the tradable sector by appreciating the real exchange rate, and reduce labor market participation rates as receiving households opt to live off of migrants’ transfers rather than by working. Moreover, remittances’ contribution to growth and poverty might reduce the incentives for implementing sound macroeconomic policy or to institute any needed structural reforms.

Some also argue that remittances do little to stimulate development in the countries of origin. A few studies undertaken relating to the uses of remittances show that savings produced by remittances are frequently directed to purchases of non-productive assets. Remittances were also seen to increase dependency. These inflows are quite volatile since countries that depend too much on them may face economic shocks when the flow is disrupted.

General policy measures

There are many policy instruments the government can use to improve development impact of remittances and enhance the flow of remittances through the formal channel. Which policy instruments the government selects depends on the desired goal it intends to achieve. First, if the government’s objective is to capture a portion of remittances for development purposes, then the policy instrument will be to impose taxes or levies on remittance transfers, or to explore voluntary check-off for charitable purposes. But, taxing remittances may be counterproductive. Second, if the government’s objective is to stimulate transfers through formal channels and to stimulate capital availability, then the policy instruments should focus on the sale of remittance bonds, opening of foreign currency accounts, premium interest rate accounts, promoting transfers through microfinance institutions, promoting financial literacy, and banking the unbanked. Foreign currency accounts and bonds have proven to be viable means of raising funds. This should be targeted at the diasporas’ middle-to-upper income members.

Moreover, if the goal is to stimulate investment of remittances then the government needs to reach out to remittance receivers through micro finance infrastructures. The government could also reach out to its migrants abroad through migrants’ service bureaus, and tax breaks on imported capital goods by migrants.

Since a long time, governments of migrants’ home countries have employed a large variety of policy measures that target different elements in the system. Multilateral agencies such as the World Bank and the IMF and bilateral development agencies such as the DFID of the UK have also examined different policy options and recommendations. A list of policy measures based on this array of experiences is delineated in the following table.

Role of Remittances in the Economy

During the last decade or so inward remittance has emerged as the backbone of many developing countries. Officially recorded data for workers’ remittances to developing countries rose to US $ 167 billion in 2005 up 73 per cent from 2001. More than half of the increase from 2001 to 2005 in remittances occurred in China, India, Mexico and Philippines. The growing importance of remittances as a source of foreign exchange is reflected in the fact that remittance growth has outpaced private capital flows and official development assistance over the last decade. Measuring the impact of remittances is complex mainly because of the difficulties of accounting for the potential (counterfactual) loss of income from migration i.e. what migrants would have earned if they had stayed home. The impact of remittance on poverty is considered positive though evidence of its effect on inequality and long-term growth is mixed. Remittances directly affect poverty by increasing the income of the recipient. For e.g. children in households receiving remittances are more likely to receive better education and health care. They also indirectly affect poverty in the recipient country through their effects on growth, inflation, exchange rates and access to capital. Adam and Page examined the impact of remittances on poverty in 71 developing countries. The result shows that both international migration and remittances significantly reduce the level, depth and severity of poverty in these areas. The study has shown that a 10 percent increase in per capita official international remittances leads to a 3.5 percent decline in the share of people living in poverty.

Remittances have positive impact on a country’s BOP. Remittance receipts enable a country to pay for imports and repay foreign debt. Remittances act as a stable source of external finance and help in bridging the deficit on the current account. Remittances also help in improving several macroeconomic indictors like the debt service ratio and other indicators. Moreover, it is seen that the volatility of worker remittances in most countries is lower than the volatility of private capital flows. By generating a steady stream of foreign-exchange earnings, remittances can improve a country’s creditworthiness for external borrowing and through innovative financing mechanism they can expand access to capital and lower borrowing costs for example through securitization and using future remittances as collateral such as in Mexico, El Salvador, Turkey and Brazil. Realizing the important role of remittances in the economy, international agencies like the IMF and the World Bank and national governments have shown increased attention in this area.

Various studies have been conducted and policies have been implemented to increase the flow of remittances, to bring it through the formal channels and to use it productively for the development in the recipient country. In this context, various countries have provided incentives including travel and custom privileges for returns and imported goods, the higher interest rates on the foreign currency accounts, loans/pension schemes and bonds targeting at diasporas, support to home town associations and matching grants for the development of local infrastructure projects etc. In Nepal, remittances have played a major role in maintaining an overall economic stability and exchange rate stability in the face of low economic growth and sluggish performance of other sectors such as industrial sector, tourism and exports. It is estimated that in Nepal remittances may explain a quarter to a half of the 11-percentage point reduction in the poverty head count rate over the period from 1995/96 to 2003/04.

Remittances have emerged as a major source of foreign exchange earnings in the country. The share of remittances to total foreign exchange earning has reached to 46.5 percent against only 29.8 percent of exports in FY 2005/06. The strong external position has allowed the NRB to build official reserves to high levels, reducing its vulnerability to external shocks. The contribution of remittances in the economy mainly depends on the role it plays in increasing employment or the national income. This crucially depends on the productive use of remittance or investment in the economy. It has been found that about 80 per cent of remittances is used on repaying the debt, consumption purposes like purchasing lands, more expensive education for the children, expenditure on social functions like marriage and other ceremonies etc. Only remaining 20 percent is used for productive purposes like small business, investment in the industry, agricultural business etc.

Therefore, some authors believe that remittance have greater negative impact in the economy including the unproductive expenditure and demonstration effect of the migrants, domestic currency appreciation and inflation. The human and social aspects of migration are also an important factor which should not be neglected. The major challenge for Nepal is to formalize the remittance through the formal channel and to enhance the impact of remittance in the economy. In this context, it is believed that after Nepal Rastra Bank granted licenses to private sector organizations interested in remittance-transfer business, majority of remittances from the Nepalese workers’ in Gulf and other countries have started to come through the banking channels. However, a significant amount of remittance from India still comes through the informal channels. Nepal Living Standard Survey II shows that only 0.8 percent of the remittances from India comes through the banks and financial institutions and the rest are carried by the friends, relatives or the workers themselves.

A recent pioneering study by the NRB on the Indian remittance also confirms these facts. The study has highlighted various problems faced by the Nepalese workers in remitting the money through formal channels, reviewed the policies of the SAARC and other countries and also put forward some recommendations to bring it to the formal channel. The government and NRB should explore the possibility of providing the various measures and incentives to bring the remittance through the formal channel and to enhance its development impact especially considering the experiences and policies of neighboring countries like India and Bangladesh. The policies should focus on the access of financial services and reducing the fees for sending and receiving remittances. It’s a huge challenge for us to bring the remittances from India through the formal channel, which has also become important in the face of global concern for the terrorist financing and money laundering. The government and the central banks of the two countries should work together to enhance the cooperation among them to encourage the migrant workers in using the formal remittance channels.

NRB Remittance services in ABBL

AB Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc. in 2002 and in 2008, the President & Managing Director of ABBL; Kaiser A. Chowdhury has signed some new agreements for launching some more remittance services in Bangladesh as well as in ABBL. The global information of the services operated in ABBL is described in later part.

RIA financial services (Australia, Italy, France, Denmark, Sweden, UK, etc)
AFX Fast Remit (Qatar)
X-Press Money (all countries)
Cash Express (Dubai)
Remit Master (Malaysia)
Instant Cash
Turbo Cash

In ABBL, RIA, AFX Fast Remit, X-Press Money and Cash Express has the operational function in every branches all over the country in which RIA has the maximum amount of transfer order annually. And Remit Master, Instant Cash and Turbo Cash have launched its services in ABBL but do not have much amount of transaction orders and payments. In 2008, Western Union Money Transfer has been closed to operate in all ABBL’s branches and now the new ones are operating its functions hugely.

Documents required for collecting NRB Remittance:

Customer has to fill-up an EFT Application Form of ABBL where the information of sender and receiver is required.
Transfer code is needed.
National ID card or Passport or Driving License or any authorized and certified certificates where a photograph and signature of receiver is given.

RIA Financial Services

RIA Financial Services is the third-largest global money transfer company. Since 1987 it has endeavored successfully to provide a cost effective, secure and fast alternative to send money to the families and loved ones of our customers worldwide.

Now serving more than 110 countries, RIA has emerged as a global leader in remittances and is a recognized benchmark in both quality and service. As extensive network of agents and correspondents continues to grow will remain steadfast in the commitment to the customer and will remain ingrained within the communities in which they live.

Mission

Ria Financial Services is recognized as the most progressive money transfer company that offers the most competitive and reliable remittance payment services to the general public. It is committed to provide responsive and top quality customer service based on the highest degree of ethical standards. It will endeavor to achieve meaningful growth and to develop new products and services that meet and exceed the evolving requirements of the different markets that we serve. It will always conduct relationships with our agents and correspondents guided by the principles of mutual respect, fairness and generally-accepted business practices.

We steadfastly endeavor to recognize the customers’ sacrifices that are the sources of the service that they provide. It shall strive to actively support and become an intrinsic part of the communities in which it serve together with the collective dedication and professionalism of employees, it is always be known by its service excellence.

History

Ria Financial Services is a recognized financial service leader and leading specialist in international money transfers. Since 1987, the company has provided fast, reliable and secure money transfer services using state-of-the-art technology to ensure speed and accuracy in transactions. It operates through a worldwide network of 62 offices and more than 41,000 paying and receiving agents in 85 countries.

About Euronet Worldwide Inc.

RIA operates as a subsidiary of Euronet Worldwide Inc. Euronet Worldwide is an industry leader in processing secure electronic financial transactions. The Company offers payment and transaction processing solutions to financial institutions, mobile operators and retailers which include comprehensive ATM, POS and card outsourcing services; card issuing and merchant acquiring services; software solutions; consumer money transfer and bill payment services; and electronic distribution for prepaid mobile airtime and other prepaid products. Euronet operates and processes transactions from 42 countries.

Euronet’s global payment network is extensive — including 9,205 ATMs, approximately 56,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 24 countries; card software solutions; a prepaid processing network of approximately 421,000 point-of-sale terminals across approximately 227,000 retailer locations in 20 countries; and a consumer-to-consumer money transfer network of approximately 77,100 locations serving more than 100 countries. With corporate headquarters in Leawood, Kansas, USA, and 35 worldwide offices, Euronet serves clients in approximately 140 countries.

Euronet was recognized by FORTUNE magazine for the second consecutive year as one of America’s 100 fastest-growing companies (ranked #36 in 2006 and #34 in 2005). The Company also ranked two consecutive years on Forbes magazine’s annual list of the 25 fastest-growing technology companies (ranked #4 in 2008 and #7 in 2007).

Xpress Money

Xpress Money is simply the fastest way one can send money to anywhere. The only instant money transfer service which gives the true value-for-money with agent locations near to one wherever they are, state-of-the-art technology for perfect ease of use, and dedicated support teams to ensure maximum reliability.

Whatever be the reason to send money, Xpress Money takes pride in ensuring that it reaches its destination safely and in a matter of minutes powered by a strong network of agent locations spread across 5 continents.

Don’t Just Send; Xpress It!

Xpress Money is not just any ordinary money transfer. Its money transfers with passion! Where you send not just money to ones loved ones whenever and wherever they need it, but their love too. They ensure that ones care for them is expressed fully through its personalized service. So whenever one needs to send money fast and safe, don’t just send it, but ‘Xpress It’!

From a family of favourites…

Xpress Money is a member of the prestigious NMC Group, the leading conglomerate based in the United Arab Emirates with business interests ranging from Financial Services; FMCG products; Scientific, Laboratory, Education and Medical supplies; Foodstuff; Pharmaceutical Manufacturing and Trading; Gold and Diamond Jewellery; Advertising and Communications; Restaurants and Hoteliering, Real Estate, Information Technology, to Engineering services.

Xpress Money is an associate of UAE Exchange, the leading global remittance brand with direct operations spanning 21 countries, with over 435 offices across 5 continents; and correspondent relationship with over 150 leading banks covering the entire financial world.

Global Network

Xpress Money has one of the largest agent networks among instant money transfer brands, covering all major remittance hubs of the world. It is in the business of connecting people through fast, safe and easy money transfers with their strong presence across five continents of the world.

We are everywhere… so that you stay connected!

To connect one to his loved ones, they are right in their neighbourhood too! It is always within reach of an Xpress Money agent working on their convenient timings, who would happily assist one in sending money in minutes to an Xpress Money agent right where ones loved ones are.

Strong Partners make a strong brand

Xpress Money agent network consists of leading banking and non-banking organisations of the world, chosen based on one overarching criteria: Passion in delivering quality service!

It has ensured that one get the same outstanding service satisfaction guaranteed by Xpress Money, at any of the agent locations one choose to visit.

Brand & Logo Overview

The Xpress Money brand powers not just money transfers, but also relationships. The logo communicates the spirit of care, quality, strength and happiness. The overwhelming element is ‘pace’, indicated by the extended arm of ‘X’ representing an arrow. The logo colours blue and red represent quality and passion, and our tagline ‘Send now. Receive now’ captures the essence of the forte- Instant global money transfers.

The Brand Identity Standards are developed to support the core Xpress Money Branding in all forms of expression. Standards include Corporate Identity elements, the Logo and its usage, Logo measurements, Logo colours, Third party usage, Do’s & Don’ts, Creatives – Marketing Coliaterals, Xpress Money Strapline and Corporate Typography.

Compliance & Integrity

Xpress Money is a responsible brand. The sense of responsibility covers not just the customers, but the communities and society at large.

State-of-the-art technology to ensure compliance to laws

Xpress Money ensures that the funds send through its system are used for legitimate purposes, and not for reasons detrimental to society. Xpress Money uses proprietary, home-grown software which runs checks on transactions to identify deviations if any, and reports any such deviation. The laws of the land, and those of enforcement and specialist agencies are 100% complied with at all times.

Topical training for agents and associates

Xpress Money employs Anti-Money Laundering (AML) professionals to conduct regular training programs to their global agents and associates, to update them on new enforcements that are in place, and to train them on how to implement policies.

Dedicated support team to ensure safety of transactions

They have dedicated support teams whose help are just a call away. The Xpress Money Support Team ensures that effective help is made available to customers to ensure safe and satisfactory money transfers.

Services:

How Xpress Money works for you

Xpress Money transactions are simple and fast. Whether one want to Send money or to Receive money, it take care of them in 4 easy steps:

Visit any Send Agent, Hand over filled Send form, amount to be sent and transfer fee.
Notification is sent immediately to Receive Agent. Communicate 16 digit XPIN to Receiver.
Receiver visits Receive Agent. Hand over filled Receive form and ID (where applicable).
Collect money along with Receipt. Sender gets SMS notification instantly upon payment collection.

Instant cash

Instant Cash provides a state of the art electronic Money Transfer System. Developed for the masses across the globe, Instant Cash charges the competitive fees for remittances and is backed by the latest technology for reliability. The product is monitored and serviced by the dedicated customer service professionals to deliver a fast and reliable service.

Instant Cash World Wide Ltd. UK, a subsidiary of Emirates Post – a UAE Federal Government Entity.

It is essentially a state-of-the-art electronic money transfer system that employs leading edge Internet-based technology. This technology is extremely secure and enables recipients of a remittance to collect the money only minutes after it is sent.

Developed for the global expatriate community and travellers, Instant Cash charges the competitive fees for remittances. The products monitored and serviced by a dedicated customer support and operations team in the UAE, which means that support and assistance are only a phone call away.

Here is the Instant Cash benefits proposition:

Competitive charges for remittance.
The best exchange rates.
Service centres / agents in various countries.
Continuous support.

In addition to speedy remittances, Instant Cash will also introduce a range of other money transfer solutions to provide customers greater choice, depending on customer demand and local regulations.

Cash to Cash.
Cash to Bank Account Transfer.
Home Delivery.

Instant Cash, with its vast agent network, is well equipped to service the remittance needs of all segments of society. The network in the GCC countries is also widespread, and is due to expand further through new tie-ups.

Launched New Generation Product – INSTANT CASH Global Money Transfer

Facilitates INSTANT CASH payment from point to point.
By way of electronic money transfer service.
High security web based remittance.
With fast and reliable service to the end.
Dedicated customer support dept.

How To Send / Pick Money?

How to Send Money from an Agent Location

Get advantage of widely spread network of branches and agents. Visit the nearest branch or agent. Ask for money transfer form. Fill the form, return it to the agent with cash and the valid identification. Sign the receipt. The customer’s receipt will have the ICTC (Instant Cash Transfer Code) Number that will allow him to track the status of your money transfer online.

How to Pick Up a Money Transfer

Money can only be received in person, just visit the branch or an agent. Present the ICTC Number (Instant Cash Transfer Code). Tell sender’s name and country the money was sent from with amount that was sent. Show the identification card to the agent. Sign the receipt that the Agent gives him. The Agent will give him the money that was sent to him.

Account opening & NRB Remittance service

When any client of a bank gets frequent remittances from abroad under a single/same branch of ABBL having a good or huge amount of money, then the client is advised to open an account for his/her safety & security of money by depositing it.
In this case, the client have to follow the general guidelines of account opening procedures and will able to get all the facilities related with this department.
Locker, balance statement, cheque book issuance and monetary transaction with the bank will occur in a safe mode like as a regular and desired client of a bank.

Cash department & NRB Remittance services

NRB remittance service has a close relationship with cash department, because whatever the remittance has come to a branch of a bank, the bank process it to make it easy to collect the amount of money and client have to go to the cash department to collect or receive the amount of money that has come for him/her from abroad as a remittance in a bank.
Client has no alternative way to collect money rather than cash department, because before doing anything else (P/O, FDR, F/C, Sonchoypotro etc), he must have to draw or collect his money in cash from the cash department and then he can do anything by how he wants to take his money in which way or not.

Local remittance & NRB Remittance services

In ABBL, local remittance covers 2 types of services- Pay Order & FDR.
If any client who has remittance to collect from a branch of ABBL, but has no account with this bank, can also do FDR and as well as Pay Order to carry/take his money in a form of this 2 types.

Banking clients can also have a scope of doing FDR and Pay order to carry his amount of money by following some prerequisites which is also applicable for non-clients-
1. FDR/ PO form fill up
2. Photograph submission
3. Making someone as a nominee
4. Require no introducer
5. Must submit National ID Card, without it no one can do anything related with banking activities (Bangladesh bank rule).
Walking/ Non client of a bank can also take Pay order because of not to take the amount in cash, then he have to make fill up the application form of Pay Order by his own name or if he wants to give the amount to anyone else then by the assigned person’s name, the walking client can carry his money. In this case, the client must fill up the personal information form for the need of a bank in a permission of the authority.

ATM/Card division & NRB remittance

If any client has an account with ABBL and also get some remittance come from abroad in the bank, can also apply for ATM/Card facilities.
For having card facilities, the client must have an account in the branch having an income capability of tk.10000 or above, and then he will apply for debit/ATM card.
Income capacity of tk.50000 or above can also hold credit card facilities whether the client is having remittance service or not.

Foreign remittance & NRB remittance

The client having NRB remittance in ABBL can also have the facilities or service of foreign currency remittance.
The client can send the foreign currency by depositing local currency of that amount valuing on the current date exchange rate to abroad.
The client can send and receive the remittance at the same time through the transaction within a bank.
ABBL, like other banks also work on converting the currency for the better use of money in need of clients’ demand and preferences.

Investment/Sonchoypotro department & NRB Remittance

A client having a remittance in ABBL or not, both can apply for the purchase of sonchoypotro of any category.
They need to fulfill the necessary documents required for having sonchoypotro in a bank and will able to earn interest as required from the purchased sonchoypotro as required time being.
The client can also use his remittance amount of money in purchasing sonchoypotro and will be treated as a regular loyal client of a bank having all kinds of required policies and services.

Customer service department & NRB remittance

Customer service department works on providing all kinds of services to the regular and walking client of ABBL.
Any kind of query of any kinds of clients is meeting up through the customer service department.
In customer service desk of ABBL also advices and helps clients to suggest the different ways or services or procedures of sending and receiving money from and to abroad along with its necessary costs and charges, so that clients can get the best service within a very short time not having any hassle.
It works on face to face, online, telephonic conversation or any other way that will suit for the clients’ desire and need.

Findings

Sometimes client face some difficulties in filling up the application form and documentation while collecting money from the branch in NRB remittance division.
Sometimes insufficient fund from NRB remittance creates problem for the customer to collect their money in time.
Server or IT problem create problem in money transfer order and it also cancel because of insufficient information of sender and receiver for security and secrecy.
Proper training need is requirement is not justified because the rating does not bear the true demonstration of overall performance.
Online banking, personal computer with internet facilities for each employee enabled their work easier and faster with full professionalism. ABBL is installed with MYSIS, one of the latest technology software, to functioning more effectively.
Though ABBL has almost all due capabilities to command extensive research and development activities, it has done a very little in it.
ABBL is not free from ever disruptive power supply of our public sources. Although the branch generates the required power through generator fed on diesel, but it also disruptive for banking activities as well as operations. There is no way to keep cool the environment of the bank through power supply and it is not working friendly at all.
It has created a brand value among the customers.
Different saving and credit schemes are introduced as a need of market segmentation.
Employees of all departments should be fluency in their tasks so that customers do not feel bored.
The Dhanmondi branch has lots of customers and they are very loyal to it.
The branch has some energetic and efficient human resources who maintain their daily activities smoothly and efficiently.
Job rotation is not performed timely as the officers demand it.
Computer efficiency of the officers is not observed suitable enough in all cases.
Though they have modern online technology of recording all documents using desk computers, they still work on keeping records manually through maintaining registers and hand written documents.
Sometimes the IT server or online service fails to keep pace with the branch operation because of sudden crash or going into offline, then the whole branch suffers as well as the clients come to get the services as well.
There is need of extra officer or personnel who will work at the time when the desk officer will be in a leave or will not able to attend or present in the branch. In this time, the desk remains hampered and the other have to maintain having the burden of maintaining both desks as well.
Necessary equipments and materials are not well established and maintained.
Security service of the bank and its branch is not well established and strong enough.
Manual and computer operated task is done for every single operation and it takes too much time that creates irritation and time consuming for the customers.

Recommendations

In collecting remittance, documentation must be easier for helping the clients for collecting money.
Fund sufficiency and server correctness is required while providing services to the clients of NRB Remittance.
The bank should arrange some more training programs for their officials. Quality training will help the officials to enrich them with more recent knowledge of International Trade and financing as well different banking activities.
Installation required equipments and daily up gradation.
ABBL should emphasize on its advertisement strategy to capture new customers.
The bank must need the establishment of R&D department.
Proving sufficient power supply facilities.
Taking of immediate steps of reducing employee turnover.
Should introduce new innovative and modern customer service options.
Enhancing its motivational activities.
Involvement of direct social investment.
Reengineering its core business pattern.
ABBL should utilize properly the “Internship Program” as one kind of promotional policy to encourage its present and potential clients. Because, young generation plays a vital role in our economy. To do so this bank should provide facilities to the internees through proper placement and practical operations as well as job certainty to those who brings introduce themselves the best performers in doing their particulars.
Security service must be established strongly and supervised properly.
Proper arrangement of necessary equipments and materials needed in every desk of each department for providing prompt service.

Conclusion

As an internee of ABBL, I have truly enjoyed my internship from the learning and experience viewpoint. I am confident that this 3 months internship program at ABBL will definitely help me to realize my further career in the job market.

ABBL is committed to provide high quality financial services or products to contribute to the growth of GDP of the country through stimulating trade and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country. Though ABBL makes a strong position through its various activities, its number of clients, amount of deposit, and investment of money is increasing day by day. This bank already has shown impressive performance in investment. The bank now should think to start new services and take different types of marketing strategy to get more customers in this competition market of banking.

As there are lots of local and foreign banks in Bangladesh, the AB Bank Limited is promising commercial bank among them all. In this competitive market, bank has to compete not only the others commercials but also with the public ones. ABBL is more capable to contributing towards economic development as compared with other bank. ABBL invested more funds in export and import businesses. It is obviously that the right thinking of this bank including establishing a successful network over the country and increasing resources will be able to play a considerable role in the portfolio of development. Successes in the banking business largely depend on effective lending and timely ensure recovery. Huge amount or contribution on remittance as well as the general activities will enhance the economic improvement in national and international perspective of the country and the bank itself as a mark of providing services to the clients. Hope the more modern and easy appliances and techniques as well as proper and trained personnel will raise the benchmark of ABBL in the highest rank of the world along with the country and pride itself as a shining star in the sky.