Remittance Policy of Trust bank limited

Remittance Policy of Trust bank limited

The bank is place of transaction where people deposited their lazy money for savings and withdraw money for various activities to run.

The bank playing their role by doing this from the both side when they receive money from them and they provide an interest of that money as well as bank lend that money to other by taking interest of that money to make profit. Banking sector plays an important role to boost up a nation economic sector and for the development purpose.

However, every bank is doing the same thing more or less everywhere in the country and trust bank limited is not exceptional. Trust Bank Limited Savar Cantonment Branch is one the imperative branch where it transacts huge amount money from the customer especially from the defense members because it’s located inside the Savar Cantonment.

Trust bank limited known as a prominent commercial bank in Bangladesh which plays a significant role for the development. The bank has been emphasizing to development of the business sector since it was started their voyage. The bank is committed to provide satisfactory service to the customer. This Bank consisting with some department which actually the basements of this bank like Account opening and card division, Clearing department, remittance department and loan department.

The internship report carries out lots of hands-on and theoretical knowledge about the activities of banking in Bangladesh. The activities of the bank executed lots of work since the journey of my internship i got some practical knowledge about banking certainly.

Introduction:

Trust Bank Limited is one of the leading private commercial banks along with an extent network. A few years back Trust Bank Limited started their Journey with acceptable vision as a commercial bank in Bangladesh. It has been now operating their business with number of 72 branches, 7 SME centers, 105 ATM Booths and 60 POS in 50 Branches across Bangladesh and plans to open more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2013.

Trust Bank has been functioning in Bangladesh with extensive aspects of modern corporate and consumer financial products since 1999 and has achieved customer assurance as a sound and stable bank.

The bank, sponsored by the Army Welfare Trust (AWT), is first of its kind in the country.

Consecutive Developments of Trust Bank Limited:

In 1987 first generated the idea about run out a bank in Bangladesh commercially.

In 1994 foreign investment took place.

1999 15th July Trust bank limited got the license and permission to operate their journey of banking in Bangladesh.

After that in 1999, 5 August the bank got the branch license to represent the bank in Bangladesh. Finally with a small mission and vision the bank successfully complete the inauguration to execute their operation in Bangladesh.

In 2001 it involved in automatic banking. Then in 2005 they have been starting to use of ATM Machine to make the transaction easier. The bank redecorated themselves in 2006 by changing their logo, name and retail banking.

In 2007 the banks gets inside of online banking and allow using visa card for their customer. The bank has been completely trying to spread out their network through establishing new branches in Bangladesh. Since bank’s business volume increased over the years and the demands of the customers enlarged in manifold and technology has been upgraded to manage the growth of the bank and meet the demands of our customers.

Trust Bank is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at Trust Bank, customer is always at the center.

Retail Banking:

Retail banking of trust bank consists of their wide range of products that are pointed out below: Current Deposit account: Open a Current Account at Trust Bank to suit your business needs and avail of a range of benefits as listed below.

MICR Cheque Book facility containing 20 leaves.
Free 24 hours ATM facility for individual current account holders at over 200 ATMs across Bangladesh.
Login to your account anytime, from anywhere using our free Trust Bank Online Banking facility.
Carry out shopping at all Visa Electron merchants using your Debit card, which is linked to your current account.

Saving Deposit account: Choose from a range of savings accounts that allow you to withdraw your funds at any time for easy, convenient banking.

Bank pays attractive interest.
Personalized MICR Cheque Book is available.
Nominal service charge.
Any branch banking facility.
Rate of Interest : 6.00%
Bank accepts and supports Standing Instructions.
Interest is payable on half yearly basis.
Option is available to collect e-Statement
Dedicated phone service team available to answer your Trust Savings Deposit Account queries
Make your money work harder with interest paid on your savings
Access to your funds via TBL ATMs/any Visa ATMs.
Have peace of mind knowing that your money is safe with the security.

Fixed Deposit Account: A fixed deposit account helps your money work for you by earning a higher rate of interest for a fixed term of 3 months, 6 months, one year period. Money can grow with attractive interest rate with flexible tenure.

FDR can be opend for 1 Month, 3 Months, 6 Months, 12 months and above.
Automatic renewal facility at maturity
Loan facility against FDS to meet urgent financial needs
The customer may avail loan facilities against FDS as security.
Premature closure facility at savings rate

Trust Money Double Scheme:

Trust Money Double Scheme is a magic of turning customers savings into double over the 5.5 years period. With this deposit customer have option how quickly he/she can make the money double. This product is especially for the customers who have already saved a substantial amount of money and now wants to make secured investment to make the money into double.

SME Banking:

SME banking divided into three sectors which are described below

Agricultural Loan:

Trust Shufola Bangladesh
Peak Seasons Loan
Agri-Business Loan
Trust Shufola Bangladesh
Loan for Poultry Farm

Entrepreneur Loan:

Entrepreneurship Development Loan for Retirees
Women Entrepreneur Loan

Islamic Bank:

Islam is a complete code of life. The prime objective of Islamic life style is to conquer success in life here and hereafter. Islamic way of life as enshrined in the Holy Qur’an and the Sunnah should be followed. Islamic Banking trade and transaction is based on the core rules & regulations affirmed in the Holy Qur’an and the Sunnah. Trust Islamic Banking is solely committed to conduct and manage the banking system abiding the Islamic law. Islam has given right to attain and own assets.

Deposit Account:

Al-Wadiah Current Account
Al-Wadiah Term Deposits
Mudaraba Savings Account
Mudaraba Spacial Notice Deposits

Loan Scheme:

Barakat Car Scheme
Barakat Home Construction Scheme
Qard Scheme

Corporate Banking:

In generally trust bank divided corporate banking sector into three different aspects these are given and describes below in shortly.

Cash Management:

Cash Trade Overview: An easy and convenient way of managing your finances. Whether you want to make or collect payments, manage company accounts efficiently, we have a service to suit you.
Liability Products: Bank also offers various transaction and investment opportunities to their clients for their long and short term fund.
Securities Services: Primary services offered where trust Bank will be responsible for maintaining the safety of custody assets held in physical form at the custodian’s premises.

Corporate Loan:

Overdraft
Short Term Loans
Syndicated loan
Term Loan

Trade Finance:

Letter of Credit (LC)
Letter of Guarantee (LG)

Nature of the Bank:

The nature of the banking business is to connect those in need of funds (borrowers) with those with an excess of funds (savers) for the purpose of lending or investing. Banks can lend money to borrowers in a variety of ways depending on how the money supply is defined and the nature of the deposits it holds.

Banking is an important aid to industry and trade, and that it also provides a variety of services to the public in general. Indeed banking may be regarded as an essential part of the economy of every country. The significance of banking has increased all over the world with the rise in income levels and growth in the volume of financial transactions. In addition to accepting deposits and lending funds, banking also involves providing various other services along with its main banking activity. These are mainly agency services, but include several general services as well.

The essential features of banking activities are as follows:-

i) Accepting deposits from public

ii) Lending or investment of such deposits

iii) Related to the activities of accepting deposits for lending or investing, banks undertake activities like —

Promoting and mobilizing savings of the public;
Providing funds to trade and industry by way of discounting bills, overdraft, cash credit facility, and transfer of funds from one place to another
Providing agency services to customers, such as collection of bills, payment of insurance premium, purchase and sale of securities and other general services, such as issue of traveller’s cheques, credit cards, locker facility etc.

Money depositors deposited the amount of money in the bank for purpose of safety. Further the depositor is allowed to withdraw it whenever required. Banks allow interest on deposits.

This is what bank is doing their business in terms of providing service to the customer.

Project summary:

The definition or meanings of bank can be explained in one sentence but its importance which has no limit to describe indeed. A bank is a place of transaction where it works with receiving deposits from customer and lends depository money to various customers or invests in capital market to make some profit. In the present time banking sector takes a huge impact on global market growth. Now what does a bank actually do. Simply Banks collect money from various sources and provide necessary funds to individuals and government to carry out big projects in the field of industry and commerce they also give advice and technical guidance in commercial industrial matters.

Thus by mobilizing the savings of the nation, banks put it to productive use. Banks also play a vital role in maintaining the stability of price level in the country. They collect the savings of the masses which, in the absence of banks, would have scattered and idle. The economic progress of a country in recent can be arbitrated from the efficiency of its banking arrangement.

In the consideration of Bangladesh the economic condition of this country goes ups and downs just because of banking activities or performance. Many economic developments occurred in our country with the existence of bank. Now a day it’s harder to think a nation without a bank. Trust bank limited is one of the most prominent commercial bank in Bangladesh which plays a significant role for the development. The bank has been focusing to growth of the business sector since it was started their journey. The bank is committed to provide satisfactory service to the customer.

The report brings much of practical and theoretical knowledge about the core banking in Bangladesh. Some terms of banking operations seemed new and some of our familiar. Considering overall the journey of my internship i got some applied knowledge about banking indeed.

Objective of this Study:

It’s an excessive opportunity to me to get fewer experiences instead of working in the bank like Trust bank Limited. My objective of this study is not only to make submission of this report/statement but also earn some applied information about the organization. The experiences that I got from there that can be applicable of my future career path .I have learned or gathered many terms and issues about the organization which actually executes my ability of learning and practice about bank policy .Nearby I have got enough knowledge about the organization policy, strategic overview and procedure.

Major areas of this Study that I have found out in throughout my internship period are focusing below.

To acquire the overall overview of the banking activities, duties and responsibilities of the stuffs and customers.
To get working environment, learn official behavior and handle over the duties and responsibilities that given by authority.
To find out the core requirements and related activities of Retail banking system.
To evaluate the procedures of general banking.
To have get idea about HRM necessitated guideline of the Trust Bank Limited.
To get the information about advanced banking system.
To obtain the idea about managing customers come up with an acceptable solution.
To study the existing overall banker customer relationship.

Methodology:

The information of the presented report was delivered in details so that each of the statement makes a proper meaning.

Theoretical classes of BBA provide us theories regarding different subjects whereas practical orientation gives us the chance to view those systems and their operations. This report has been prepared on the basis of experience gathered during the period of internship from February 01 2013 to April 30 2013. For preparing this report, I have undergone group discussion and interviewed with officers and clients of the bank. The Data I have collected to make my report meaningful and to carry out the study both primary and secondary data were used.

INLAND/ LOCAL REMITTANCE:

Money remitted from one place to another to the help of the customers for their safety/necessity is called remittance of fund. Local remittance means remittances in local currency that are received/ payment in and made out within the country.

Remittances are of two types:

Inward Remittance
Outward Remittance

Generally fund may be remitted through a bank to another by issuance of Payment Order, Demand Draft, Telegraphic Transfer and Mail Transfer. What comes in are called inward remittance and what goes out are called outward remittance.

Demand Draft (DD):

Demand draft is an instrument issued by a Bank drawn on their other branch (outside the local clearing zone) with an advice/ instruction to pay of certain amount to the beneficiary on demand.

Issuance of DD:

DD application from the customer or otherwise.
Checking of the DD application form, amount in figure and word, name & account number of the payee and name of the drawee branch.
Confirm about cash deposit or cheque payment against the DD.
Entry in the DD issuing register and put the serial number branch wise.
Preparation of DD in prescribed DD instrument which must be signed by two authorized officer and test number must be putted on the DD if the amount is more than Tk 25,000.00 (practice in TBL).
An inter branch credit advice (IBCA) must be issued favoring the drawee branch towards payment against the DD.

Payment of DD:

After receiving DD from the client or by otherwise the banker must verify the signatures of the authorized officer of the issuing branch.
The banker must check the Test Number of the DD.
DD may be payable before or after receiving inter branch credit advice (IBCA) from the issuing branch.

Entries for issuance of DD:

Dr: Cash in Hand/ Customer’s Account

Cr: Payable Account – Demand Draft

Dr: Payable Account – Demand Draft

Cr: TBL General Account

Entries for DD Payment with advice:

Dr: TBL General Account

Cr: Payable Account – Demand Draft

Dr: Payable Account – Demand Draft

Cr: Cash in Hand/ Customer’s Account

Entries for DD Payment without advice:

Dr: DD Paid without Advice

Cr: Customer’s Account

After receiving inter branch credit advice (IBCA) from the issuing branch:

Dr: TBL General Account

Cr: Payable Account – Demand Draft

Dr: Payable Account – Demand Draft

Cr: DD Paid without Advice

Issue of duplicate DD:

When a Draft issued by the bank is reported to have been lost and duplicate is asked for by the purchaser the issuing bank should immediately notice the drawee bank by Telegram/Telex/Phone and enquire it is not yet payment as if so, urgently instruct them to mark caution “Stop Payment”. The manager/dealing officer of the paying bank will personally satisfy himself that the payment against draft is still unpaid before informing the drawing officer to this effect and will himself-record the fact that the draft has been reported lost on the relative advice and in the Draft payable register in bold letters in red ink.

When a DD has to be issued against the lost draft, a letter of indemnity must be taken, this should be appropriately stamped and signed by the buyer and two sign from two witnesses are required. After obtaining these terms from the buyer, permission should be taken from the Head Office. Observing all the formalities Head Office will give permission to the issuing branch, then the issuing branch will issue the same in favor of the purchaser, using the same controlling number and date carefully clearly marked ‘DUPLICATE ISSUED IN LIEU OF ORIGINAL”.

Cancellation of DD:

If the purchaser of the draft wants to refund the money by cancellation, the purchaser must apply in writing to the Manager along-with the draft giving reason for cancellation. The Manager should be satisfied about the genuineness of the application after verifying the signature on the application with that on the reason for cancellation, he will cancel the draft by writing the word “CANCELLED” in bold letter in Red ink across the face of draft and attach the cancelled draft with application.

Stop Payment of a Draft:

Normally the payment of a draft cannot be stopped by the bank as it goes against its own commitment in favor of a third party. However stop payment instructions can only be issued by the issuing branch in special circumstances at the request of the purchaser or payee in case of a lost or stolen draft only. In such cases extreme caution should be exercised both by the issuing and the drawee branch.

Issue and Payment of Telegraphic Transfer (TT):

TT is an order from the issuing branch to the drawee branch for payment of a certain amount of money to the beneficiary. The payment instruction is sent by telephone/telex and funds are paid to the beneficiary on verification of the test number through beneficiary’s account maintained with the drawee branch. It is the quickest method of transferring fund from one place to another.

TT issued from Y Branch to X Branch:

a) Receive the TT Application Form from the party or otherwise.

b) Checking the TT application.

c) Receive cash at Cash Counter or Debit the require amount from Party’s A/c.

d) Put the number in the TT application form as per TT register.

e) Application of test number by the authorized officer.

f) Passing of the TT message by Telex or over phone which is to be marked on the TT application invariably with initial of the passing officer.

Dr. Party’s A/C of Cash or Otherwise.

Cr. TBL Gen A/c.

Procedures for payment of TT:

The following procedures will be observed in paying proceeds against TT:

a) Telephonic message will be recorded direct into the TT payable Register. The amount is being entered in the word and figures and the entries authenticated under full signature of the official verifying the check signals.

b) Whenever possible, receipt of the TT payment will be advised to the payee immediately over telephone.

c) Separate voucher in respect of each TT Payment Order will be prepared crediting the amounts to TT payment orders account, the particulars of which will be entered in the TT payment orders account register.

d) TT payment orders will be sent to the beneficiaries immediately in case their addressed are advised by the remitting officers or are known to the paying branch.

e) When a TT payment order is paid it must be marked off in the TT payable register.

Cancellation of TT:

Sometime banker is requested by the applicant for cancellation of TT in writing with some reason. In such case if the banker satisfied about the genuineness of the request after verifying the signature on the TT application form, the banker send a message by phone for cancellation of the TT urgently to protect the payment. Subsequently the banker will send a message for cancellation of TT along with IBDA for the said amount. But if the payment has been made by the drawee branch against the said TT before receiving cancellation massage then the banker has no liability from their part.

Payment Order:

Payment order is an instrument issued by a remitting Bank with an advice in writing to make payment of certain amount to the specific beneficiary or person. It is like as bank cheque or Manager’s cheque i.e. money guaranteed for payment. All local payment (within the same clearing zone) whether on behalf of the Bank or the Bank’s constitution, will be made by means of payment orders which will be signed by two authorized bankers.

When then customer request for issuance of payment order, they should normally apply for the same on the prescribed form along with the required money or cheques against the same.

The bank’s payment orders are in the form of receipt and are, therefore, not transferable. They may be paid to:

The payee on identification
The payee’s banker who should certify that the amount has been or will be placed to the payee’s credit, or
A person holding a letter of authority from the payee whose signature must be attested by the payee and, if the letter direct the Bank to pay the money to a certain named person that person must be identified to the Bank be payment can be made.

Entries for Issuance and Payment of Payment Order:

For issuance of Payment Order:

Dr: Cash in Hand / Customer’s Account

Cr: Payable Account – Payment Order

For payment of Payment Order:

Dr: Payable Account – Payment Order

Cr: TBL General Account/ Cash in Hand / Customer’s Account

Cash Payment against Payment Order:

Cash Payment may be done on the basis of:

Payment Order should be duly released by the beneficiary.
Crossing stamp on the Payment Order should be cancelled by two authorized officers.
Affixing of Revenue Stamp on the Payment Order and signed by the purchaser.
Verification of purchaser’s signature.

Mail Transfer (MT):

It is an advice issued by a Branch to another specified Branch of the bank for credit of the specified amount to the specified account maintained with them. It is a non-negotiable instrument and is not handed over to the customer (applicant) rather it is sent to the drawee branch through post office/ mail for credit to the respective payee’s account.

Sometimes the proceeds of the MT is paid to the beneficiary by issuing Payment Order if no account is maintained by the beneficiary with the drawee branch. In that case, full address of the beneficiary is required to be maintained by the applicant in the application form.

It may be mentioned here that, at this moment MT facilities are not practiced in Trust Bank limited.

Foreign Remittance:

Foreign remittance in simple term means money remitted in foreign currency. Foreign remittance represents in foreign currency that are received in and made out abroad.

There are two types of foreign remittances:

Foreign inward Remittance
Foreign outward Remittance

Foreign inward remittance:

Remittances of, foreign currency being received in the country from abroad is called inward remittance.

Modes of Foreign Inward Remittance:

1) T.T Telegraphic Transfer: Cable or Telex instructions of payment are called as Telegraphic Transfer. On receipt of the TT the paying Bank in Bangladesh will make payment of the proceeds of the TT in Foreign Currency or in eqvt. Bangladeshi Taka to the beneficiary.

2) Mail Transfer: M.T is an instrument issued by a remitting Bank to the paying Bank advising in writing to make payment of certain amount to specific beneficiary.

3) Demand Draft: A demand draft is a negotiable instrument issued by a bank drawn on other bank with the instrument to pay of certain amount to the beneficiary on demand.

4) Travelers Cheques: It’s an instrument issued by the Banks/Company’s Payable to the purchaser on presentation.

Besides these foreign remittance also includes remittances on account of export, foreign currency, cheque issued on foreign Bank in favor of beneficiary in Bangladesh.

Purpose of Inward Remittance:

Family maintenance
Indenting commission /Agency commission recurring agents commission
Realization of export proceed
Donation/Gift
Export brokers commission

Foreign Outward Remittance:

Foreign exchange currency being made out abroad may be termed as foreign outward remittance

Modes of Foreign Inward remittance:

Beside these foreign outward remittance may also be affected by selling foreign ,currency notes and T.C

Checking points for outward remittance:

Application for foreign currency draft or remittance by means of telegraphic transfer.
Demand note /Invoice where Bangladesh Bank permission is not required
M from duly filled in and signed by the applicant
Permission from Bangladesh Bank for remitting and foreign currency exceeding normal quota as per standing circular of Bangladesh Bank.

Issue of cash /travelers cheque:

Foreign currency will be issued against passport of travelers
Confirmed air ticket must be seen
Date of department ,must not be more than 15 days
order is to be obtained from govt. employees for abroad traveling purpose
Open air ticket holder is not allowed for issuance of cash /TC against passport
Person below 12 years is not entitled to get out quota of foreign exchange .They are entitled to draw half quota
Customer’s declaration is to be obtained at the time of encashment of cash /TC exceeding the existing ceiling.

Reporting to the Bangladesh bank:

At the end of the month transactions on inward /outward remittance have to be reported to Bangladesh Bank by various schedules as prescribed by Bangladesh bank.

Analysis and Discussion:

Trust bank limited Savar Cantonment branch has been started their journey since 2004 and it is the 10th branch of Trust bank limited. So the operational activities or service period of trust bank (SCB) got noticeable experiences in throughout the years. As I prepared internship report on remittance department of Trust bank (SCB) which was not visible at the beginning because of some minor reasons.

Nevertheless day by day it has been increasing the amount of money including foreign currency and local currency remitted in Trust bank through different number of exchange houses. It’s situated inside the cantonment so large portion of customer, the branch could not acquire for remitting currency. There three major side contained in the remittance department these are inward, outward and (Letter of credit) L/C whereas in Trust Bank (SCB) only receiving foreign currency through different exchange houses.

I have mention last five years of remitted amount which have organized in monthly basis for better understanding. In the year 2009, after the consideration of the month July to December it claims that remitted amount of the bank increased consecutively which is actually noticeable.

However these are also same for the rest of the years of the bank. All the amount were received by the trust bank over Inland and foreign remittance. In year 2011 and 2012 some amount of money remitted in abroad which was actually less amount instead of other branches. The way of remitted amount is moves in or out all over the place by different exchange house which is mention in the graph. In Trust bank (SCB) majority of the transaction occurred with the National Exchange Company and rest of the other done quite similarly. In Inland and local remittance Payment Order is most consecutive modes in Trust bank (SCB) than other modes. Customers are more reliable of sending or receiving money through Payment Order. Now it termed as most secured way to transfer money from one place to another. Here I have mentioned a sample of demand draft of Trust bank limited.

Recommendation:

Some necessary recommendations for Trust Bank Ltd are pointed out below:

To retain and attract quality employees the bank should always try to follow competitive strategy in case of employee benefits, working conditions and other motivational approaches.
The higher authority of the bank should always try to make a fair evaluation of employee’s performance. They should develop the procedures of the evaluation each and every year in accordance with demand.
The bank can also star campus recruiting that could bring a yield of highly educated graduates for the entry level organization could arrange seminars in the top business schools across our country.
The higher authority of the bank should always concern about the fairness of recruitment and selection. Without having efficient, energetic, enthusiastic people an organization can’t achieve its ultimate goal.
The bank should always follow the world’s latest HR policy to increase the management skills and development.
The bank should place the right people for the right position in order to achieve their sustainability of the service. For this reason they first attempt to find out the human need of the bank in various department, different branches and different positions.
The number of ATM booth should be increase in potential numbers to raise the customer reliability.
The bank should raise robust promotional activities to get the sustainable brand loyalty.
Ensuring the facilities of the employees both financial and environmental which are help to motivate employees to work.
By developing more branches are help to cover up more area of business in the banking sector.
TBL should introduce more product and service scheme for people which can also attract the customer indeed.
The bank should allow arranging training session for the employee’s one or two times in each year with the advanced banking program.
The position of Foreign exchange, General banking division and credit division operate through officers with commerce back ground.

Conclusion:

Trust Bank Limited is one of the major commercial bank in Bangladesh to play important role in involving so many developments activities of the country. TBL has been performing various roles in economy. It has a greater contribution to growth of the economy. Trust bank limited known as a prominent commercial bank in Bangladesh which plays a significant role for the development. The bank has been emphasizing to development of the business sector since it was started their voyage. The bank is committed to provide satisfactory service to the customer. To make the economic condition stable the role of a bank is more important. The economic progress of a country in recent can be arbitrated from the efficiency of its banking arrangement. Trust bank limited trying harder to reach their potential customer in order to provide satisfactory services, increases number of branches every year so that customer makes transaction from their nearer branch whenever they need. They also put emphasis on their contribution to increase number of ATM booth accordance to customer’s demands. TBL is moving forward to delivering the highest possible services to their respected customers so that it will help to increase its bank value all over country. TBL believes proving best service to customer will make a good relationship between bank and customer which will help to operate banking service for long time or create sustainability in future.