Foreign Remittance Activities Internship Report BBA
1.1 Introduction
Banking is one
of the most important sectors for a country's wealth building activities. For
globalization and the financial needs and transaction rapidly banking sector
are emerge to meet up the challenges of modern days. The banking activities
operated to satisfy customer needs with modern trends the bank needs efficient
executives. To keep pace with the trend, banks need executives with modem
knowledge. foreign trade and investment depend on banks. Without any doubt
remittance catches the flash as it has great important in the balance of trade
in economy. Bank plays a vital role in this discipline. Bank also provides a
satisfied customer service for their actual and potential customer. Besides
other banking activities 'Foreign
Remittance' has become an essential part of a banks daily activity to
perform. Foreign remittance department of the bank make a role to provide
service to its regular customer and potential customer.
Without any practical
exposure, theory can never be fruitful. For this BBA program has been designed
in such a way that a student can get practical knowledge. A student needs to go
for practical orientation in some organization where his/her duty is to bear
all the some from operations and activities of that branch. As a prerequisite
for the Bachelor of Business Administration Bangladesh, I was required to
complete an internship in suitable business organization and submit a report on
my findings. I had been selected to work as an internee in Bank Limited (UBL).
1.2 Origin of the Study
As a course for
the Bachelor of Business Administration (BBA), I required to complete an
internship in a suitable business organization and submit a report on my
findings. I had been selected to work in Bank Limited (UBL), Bangladesh.
While working Bank
Limited I was assign the entire major department like Foreign Remittance.
Basically this report is based on practical working experience. After
discussion and getting content, I started to work on the report titled Foreign Remittance Activities Bank Limited:
A study on Bangladesh. In this report I tried my best to focus on the
foreign remittance operation Bank Ltd.
1.3 Objective of the Study
The main
objective of the study is to evaluate and analysis of foreign remittance
activities and performance Bank Limited and also fulfill the requirement of BBA
program. The objective of the study may be viewed as
1.3.1 General Objective
The general
objective of the study is to prepare and submit a report on the topic of Foreign Remittance Activities Bank Limited:
A study on Bangladesh.
1.3.2 Specific Objective
- To apply theoretical knowledge in the practical field.
- To know the trend of remittance inflow in Bangladesh.
- To gather knowledge about the function of different sections under foreign remittance activities.
- To show the process of remittance transfer.
- To describe different activities of remittance sections Bank.
- To know about the local and foreign remittance activities.
1.4 Scope of the Study
The Bank Ltd. is
one of the largest private commercial bank, which provides its services through
almost all over in Bangladesh. It is assigned to learn practical knowledge
about the remittance processing system through Bank. This report tries to find
out the way by which the bank's foreign remittance service is managed and
operated. The scope of this report is to find out the overall activities of the
banks foreign remittance service.
1.5 Methodology of the Study
While conducting
the study, sources were collected from primary information and data. But hardly
any updated data could be found. Data were also collected by interviewing the
responsible officers and from some documents and statements printed by the
bank. All the information incorporated in this report has been collected both
from the primary sources and secondary sources.
1.5.1 Primary Sources
- Practical observation of banking activity.
- Conversation, exchange of ideas and views with senior officials of bank.
- Practical work exposures on different aspects of this field.
1.5.2 Secondary Sources
- Annual report of Bank Limited.
- Relevant documents related to the study as provided by the officers.
- Official website.
- Different related articles and journal.
1.6 Limitations of the Study
There were some
problems while conducting the study. A whole hearted effort was applied to
conduct the study ad to bring a reliable result. There exist some limitations
which acted as barrier during the study that is mentioned bellow:
- Limitation of time was one of the most important factors to know all activities of the branch and prepare the report.
- The main limitation of the study is availability of literature and data.
- The remittance data of Bank Ltd. is not much available over the net. Secondary information was not sufficient for the completion of the report.
- In many cases the relevant data are not helpful to provide information.
- Some desired information could not be collected due to confidentially of business.
- Sometimes officers are felt disturbed to provide information as they were busy in their job.
- Every organization has their own secrecy that is not revealed to others. While collecting data i.e. interviewing the employees, they did not disclose much information for the sake of the confidentially of the organization.
2.1 Historical Background of Bank Limited
Bank Limited is
a scheduled commercial bank in Bangladesh. Is one of the largest and oldest
private banks in Bangladesh.
Bank Limited had been a nationalized bank in the name of Bank under the
Bangladesh Bank. It has all over Bangladesh through which it carries out all
its banking activities. The Bank is listed in the Dhaka Stock Exchange Ltd.
Bank is a unique organization in
Bangladesh. The Bank consists of major divisions named 1) Corporate banking, 2)
Retail banking, 3) Treasury, 4) Small & Medium Enterprise (SME).
- It operates through fully computerized branches ensuring best possible and fastest services to its valued clients.
- The bank has more than foreign correspondents world wide.
- Total number of employees nearly
- The Board of Directors consists of members.
- The bank is headed by the Managing Director who is the Chief Executive Officer.
- The Head Office is located at Bank’s own storied building the commercial.
2.2 Objective of the Organization
The objective of Bank Limited is
specific and targeted to its vision and to position itself in the mindset of
the people as a bank with difference. The objective of Bank Limited is as
follows:
- Building a strong customer focus and relationship based on integrity, superior service.
- To creating an honest, open and enabling environment
- To value and respect people and make decisions based on merit
- To strive for profit & sound growth
- To value the fact that they are the members of the Bank family committed to the creation of employment opportunities across Bangladesh.
- To work as a team to serve the best interest of our owners
- To relentless in pursuit of business innovation and improvement
- To base recognition and reward on performance
- To responsible, trustworthy and law-abiding in all that we do
- To mobilize the savings and channeling it out as loan or advance as the company approve.
- To establish, maintain, carry on, transact and undertake all kinds of investment and financial business including underwriting, managing and distributing the issue of stocks, debentures, and other securities.
- To finance the international trade both in import and export.
- To develop the standard of living of the limited income group by providing Consumer Credit.
- To finance the industry, trade and commerce in both the conventional way and by offering customer friendly credit service.
- To encourage the new entrepreneurs for investment and thus to develop the country’s industry sector and contribute to the economic development.
2.3 Vision
- To become a leading banking institution which play a pivotal role in the development of the country.
- To established and maintain modern banking techniques, to ensure the soundness and development of financial system.
- Try to encourage saving in the form of direct investment.
- Be one of the best banks in the Bangladesh.
- To contribute in the socioeconomic development of Bangladesh.
- To established relationship banking and improve service quality through development of strategic marketing plan.
- To ensure optimum utilization of all available resources
2.4 Mission
- To provide high quality financial service
- To provide excellent quality customer service
- To maintain corporate and business ethics.
- To become a trusted repository of customers money and their financial advisor.
- To make their stop superior and rewarding to the customers.
- To display team sprite and professionalism.
- To have a sound capital base.
2.5 Networks
Corporate Offices, Regional
Office, Worldwide Affiliates.
2.6 Hierarchy
The management of the organization is very much concerned about the
development of the bank and they control of all the resources of the
organization. The top to bottom organizational structure has been shown below:
2.7 Products and Services
Products is a
service oriented financial institution. The main function of the bank is to
provide services to its clients. The bank offers various products and services
to the clients to attract them. The first primary job of the bank is to collect
deposit from its clients and other prospective clients who still have not
opened their accounts at the bank. They offer different accounts at the bank.
They offer different interest rates to the different accounts. The bank also
provides credit facilities to its clients. In fact the deposits are collected
to lend some money to the people to make profit. Also the foreign exchange
department opens the L/C to its clients and thus collects L/C commissions from
its clients and thus makes a huge profit of its own.
Offers many products and
services to its clients on their satisfaction. It has a good reputation in the
banking sector by continuously updating product and service qualities. A bank
cannot be able to make its desirable progress without the satisfaction of its
customers. That’s why UBL always gives preference to its client satisfaction
and made significant progress through its operation such as deposit
mobilization, credit management, foreign trade etc.
Products
·
Personal loan
- Car loan
- Vacation loan
- Any purpose loan
- Deposit pension scheme
- Special deposit pension scheme or Income Unlimited
- Monthly Saving Scheme
- Monthly Benefit Scheme
- Double Growth Deposit Scheme
Services
As a financial service
institution, provides the following services to its clients.
- Personal Banking
- Corporate Banking
- Capital market services
- SME services
- Online banking services
- Internet banking services.
2.8 Brief Summary
The
has been providing better services to its clients with a better level of
performance. In this branch, there are thirteen employees who are doing their
job gracefully. The bank has a good reputation over their customer.
The
operation hour of the branch is 10:00 A.M. to 6:00 P.M. from Sunday to Thursday
with transaction hour from 10:00 A.M. to 4:00 P.M. The branch remains closed at
Friday and Saturday including government holidays.
The
bank has already ranked as one of the quality service provider and is known for
its reputation. Taken as a whole this branch is viewing excellent performance
and also a high profit earning branch.
2.9 Job Responsibilities as an Intern
I did my three months internship program in Bank
Ltd. During my internship program, I gained lots of experience about corporate
environment. Within this time of period; I worked with Remittance departments
and two other department namely General banking, and Accounts department. And I
also work partially at clearing section.
Bank does not follow any guidelines or fixed
responsibilities for internship student. Mainly I have worked in foreign
remittance service section. I have also done many works of the accounting
opening section. Besides that I have done different types of tasks whenever
they assigned me to do. My internship experiences are given below-
2.9.1 Remittance Department
I worked in Bank Ltd. Where I worked firstly with the foreign remittance
department. Here are needed for customer service, input of PIN number verifying
the documents provided by the customer, download the payment form, taking
customers signature, scrolling the voucher in register sheet etc. I did the
whole activities in this section. I did the whole activities in foreign
remittance section.
2.9.2 Account Opening Department
I worked some days in account opening department. Here are needed for
opening an accounts & types of accounts dealt by Bank Ltd. The following
activities are done by me –
1. Account opening.
2. Account update.
3. FDR block writing etc.
2.10 A Glance
I did the whole activities in
foreign remittance section.
3.1 Remittance
The word
remittance "Remittance" originates from the word ‘remit' which means
to transmit fund. In banking terminology, remittance means transfer of fund one
place to another or from one person to another.
Remittance refers the money
transfer from an individual, usually a person who has emigrated from his city
or country of origin, to another individual, usually a relative who remains at
home. Remittance is typically involving person-to-person payments.
3.2 Parties Involve in
Remittance
Four parties involve in remittance:
1. Remitter: One who initiates or
requests for a remittance.
2. Remit tee: A remit tee is also the
one who receive the payment.
3. Issuing Bank: The bank that sends of
affects the remittance demand drafts, telegraphs, or mail transfers.
4.
Paying
Bank: The branch on which the instrument is drawn tat has to make the
payment.
3.3 Category of
Remittance
There are two basic categories of remittance:
I. Domestic
or local remittance
II. International
or foreign remittance
3.3.1 Domestic or Local Remittance
Domestic remittance occurs when
an individual transfers fund from one location to another within same country.
The predominant pattern within this category is that the individual sending the
funds.
3.3.1.1 Types of Local Remittance
a) Payment Order (P.O.)
Payment order is
a negotiable instrument to transfer money to other banks within the station and
is payable on demand. It is a non-transferable instrument, making it an order
by one party to make payment in favor of another party. Following procedure is
maintained for the issuance of Pay Order (P.O.):
1. Customer is given a PO form.
2. After filling the form carefully, the customer is pays the money in
casher cheque.
3. The concerned teller then issue PO on
its specific block. This block has three parts, one for bank another two for
customer. “A/C payee” crossing its sealed on all PO
issued by the bank. The teller then writes down the name and address of the
beneficiary on the main part of the PO block.
In other two part name and address of the customer is written.
4. The teller gives an entry to the registry book and maintains the same
number of PO block.
5. Two authorized officer signed the PO.
6. At the end customer is provided with the two parts of the PO block after signing of the backs of the bank’s part.
b) Demand Draft (D.D.)
Demand draft is
basically a bill of exchange, which orders to pay money on demand to a certain
person specified on the instrument, or the order, drawn by one bank to the
branch of the same bank outside the station.
1. Customer is supplied with D.D form.
2. Customer fill up the form, which includes the name of the drawer, name
of the payee, amount of money to be sent, commission, name of the drawer
branch, signature and address of the drawer.
3. The customer may pay in cash or by cheque from hiss accounts if (any).
4. After the money is paid and the form is sealed and signed accordingly
it is given to the DD issuing desk.
5. Upon block have two parts one for bank and another for customer.
6. Bank part contains issuing date, drawer’s name, payee’s name and some
of the money and name of the drawer branch.
7. After issuing the D.D. the bank mails this advice to the drawer
branch.
c) Telegraphic Transfer (T.T.):
It is an encoded
message between the bank of the beneficiary and the remitter. It is one of the
quickest mode of transfer of money where by the funds are transferred trough
telex or cable from remitter / customer at one bank / branch. The payment
instruments in a TT should be clearly specified and must contain the following
information:
1. Payment of specified amount.
2. Currency in which the payment is to be made.
3. The bank branch where the payee’s account is being held, including the
payee’s name and account number.
4. Value date for effecting the payment.
The message is
reproduced and signed by two (2) officers. It is sending for test where coding
and decoding figures related to day, month, amount, currency and city takes
place. If the test is agreed then action on telex takes place.
d) Mail Transfer (M.T.)
When money is
not required immediately, MT can also make the remittances. Here the sending
office of the bank sends instructions in writing by mail to the payee bank for
the payment of specified amount of money.
e) Travelers Cheques (T.C.)
With the Rupee
Travelers Cheques market growing rapidly, BAL is the latest entrant into the
market. The bank was first to introduce TCs in 2 Lac and 5 Lac denominations, the highest ever
face value for any Travelers Cheques available in the Pakistani market. In fact
the TCs come in eight (8) denominations, which according to the bank will help
clients conduct transaction at all levels and with complete security. These
cheques have added security features, including the fact that they are printed
on scan proof paper and carry the bank’s watermark and security thread with a
24/7 security and Tele-verification
line.
3.3.2 International or
Foreign Remittance
An international or foreign
remittance involves an immigrant in a new country sending funds to his country
of origin, or to individuals (usually family) in a third country.
In other words Foreign
Remittance means purchase and sale of freely convertible foreign currencies as
admissible under Exchange Control Regulations of the country. That means
transfer of find from one place to another place in foreign currency. Foreign
remittances pay a significant role in contributing to the growth of overall
foreign exchange business. There are two ways of Foreign Remittance:
1. Inward Foreign
Remittance
2. Outward
Foreign Remittance
A. Inward Foreign Remittance: The remittance which enter into
country from foreign country. The term Inward Remittance means purchase of
foreign currencies in whatever form and includes not only remittances by MT,
TT, DD etc. but also purchase of TC' s, Drafts under Traveler Letters of
Credit, Bills of Exchange and Currency Notes etc.
B. Outward Foreign Remittance: The remittance which goes out from
our country to another country. The term Outward Remittance means sale of
foreign exchange in any form and include not only remittances by MT, TT, Draft
etc. but also sale of Travelers Cheques, Traveler Letters of Credit etc.
3.3.2.1 Types of Foreign Remittance
a) Foreign Tele-Graphic Transfer
The transfer
procedure is same as for local TT. The customer either pays cash or gets his
account debit. Since all arrangements are through main office, Bank sends
credit advice to Head Office, Which gives credit to the correspondent bank in
that particular country, ultimately giving credit to required / designated bank
and account. For ITT, Head Office account is debited and credit is given to the
beneficiary account.
b) Foreign Demand Draft
FDD is also an
instrument fund from one country to another. The customer can make payments in
three modes:
- Debit to Foreign Currency Account
- Foreign Currency (Cash)
After the
customer fulfills all the requisites of the prescribed, FDD is issued and
deducts bank charges, excise duty. Credit advice to Head Office along with a
Telex message to foreign correspondent bank is sent.
c) Foreign Outward Bills for Collection
When customer
deposits a Foreign Cheque/ Travelers Cheques, it becomes the bank's liability
to collect it. It is then sent to the bank of expected country and payment is
made after confirmation. The foreign bill is sent for correction first and then
payment to beneficiary is made. It is commonly presented through clearing.
3.4 Characteristics of Foreign Remittance
This service has
some specific characteristics for which it’s become more popular. Like:
- Quicker process to transfer.
- It is reliable and trustworthy.
- Free of charge.
- It can be used by all customers having account or not.
- Secrecy can be maintained.
- Instant cash payment.
3.5 Channels of Remittance Transfer
There are two
system of sending remittance. They are described below:
3.5.1 Formal System
Demand draft,
traveler’s cheque, telegraphic transfer, postal order, direct transfer etc. are
the formal way to send remittance.
3.5.2 Informal System
Hundi refers to
the illegal money exchange not supported by the international or national legal
structure. Hundi or money carrier system is informal procedure of remittance
sending in most of the cases. They do not charge anything for transaction. It
is the fastest method transaction. In urgent situation this is the quickest
method for sending money. The hundi operators provide door to door services. It
was interesting to note that there are other social reasons for sending
remittance through hundi. Few mentioned they send money to wives, fathers or
brothers separately and keep the amount sent secret, as it creates tension
among the family.
3.6 Purpose of Foreign Remittance:
- Family maintenance
- Treatment
- Educational Fees
- Business Development
- Marriage Expense
- Air ticket or visa processing for wage earners or immigrants
- Hajj Performance Expenditures
- Gifts and donations
- Land purchase and development
- Construction of house building or commercial complex
- Buying of flat or apartment
- Purchase of plot from real estate company
- Sending installment against flat or plot booked at housing fair in London, New York etc
- Buying of USD dollar investment or premium bonds
- Back home remittance(people returned from abroad bag and baggage)
3.7 Benefits of Remittance Activities:
a. It
is a prestigious issue of collecting huge volume of remittance for a bank in
respect to volume as well as elimination of dependency on Inter Bank Market for
USD to settle the import payment of the bank.
b. Bangladesh
Bank considered the volume of remittance while issuing AD license, permission
of opening new branch or providing any other facilities.
c. Increased
Bank’s core deposit which is low cost or free of cost.
d. Increased
number of accounts or scheme accounts.
e. Exchange
companies maintain security deposit, minimum balance as well as extra balance
in their NRT accounts.
f. Remittance
not only helping in settlement of import payment also earns commission,
amendment fees and cancellation charges and ultimate interest from PAD, LIM,TR,
etc facilities.
g. Help
for the wage earners as well as the beneficiaries which is their social
commitment.
h. Improve
size of Foreign Currency Reserve as well as balance of payment of the country.
i. Contribution
for the Economic Development of the Country and reduce poverty level of the
country.
j. It
is a help to reduce Hundi system which is still more than 50% of total
remittance coming to the country.
k. Spreading
name and logo of the Bank over the world is adding Bank’s Reputation.
Bank
earn from Remittance Business in the form of margin, fees, commission and
exchange gain.
4.1 Remittance Activities
offered
Bank
Limited is one of the leading remittance services providing banking institution
in Bangladesh. Since established, it is a proven trusted name to the million of
resident and non-resident expatriates in home and abroad. They have a strong
infrastructures and courteous staffs with an extensive network of correspondents
in the world and at home. They always give highest priority for the remittance
services; care the need of the beneficiary of the home bound remittances. Their
experienced and skilled staffs are committed provide with highest personalized
remittance services in the most professional manner for maximizing customer’s
satisfactions. The exchange rates offered by UBL are takes a highest place in
the business.
The
bank has been active in remittance operations to facilitate disbursement of
remittances received from Bangladeshi wage earners working abroad since of
foreign business. This bank has drawing arrangement with the Banks and Exchange
Companies of the different important countries of the world.
4.2 Remittance Department
Bank Limited has separate Remittance Division at their Head Office under
an Executive Director. The whole Remittance services are controlled centrally
from Remittance Division. Bank Limited deals with two types of remittances:
1.
Local Remittance
2.
Foreign Remittance
4.3 Foreign Currency Remitting
Procedure
A. Inward Remittance
Inward remittance covers
purchase of foreign currency in the form of Telegraphic Transfer (T.T), Demand
Draft (DD) and Bills & Travelers Cheque, Export Bill etc. sent from abroad
the Exchange Control Department of Bangladesh Bank. Basically these are the
formal channels of receiving inward remittance.
Sources of inward
Foreign Remittance
i. Export proceeds
ii. Remittance by emigrant Bangladeshi nationals
working abroad
iii. Commissions, fees etc. earned by local business
people
iv. Foreign loans and grants, donation and gift.
Outward RemittanceOutward remittance covers sales of foreign currency by Authorized Dealer (AD) or Formal Channel through issuing foreign Telegraphic Transfer (T.T), Demand Drafts (D.D), Travelers Cheque etc. as well as sell of foreign exchange under L/C and against Import Bills retired.
Sources of
outward Foreign Remittance
i. Payment of import
liabilities.
ii. Payment of consular
fees and commissions etc.
iii. Foreign travel quota
through traveler’s cheque/ foreign currency.
iv. Educational expenses
for students abroad/ medical expenses and other purposes.
v. All other payments sent
abroad in foreign currency.
4.4 Features of Remittance Services
1.
Quick
2.
Reliable and Trustworthy
3.
Free of Charges
4.
Sophisticated
5.
Exceptionally high service standard
4.5 Flow of Foreign
Remittance
Channels
1. Through different Money Exchanges
2. Through different banks
Modes
1. Direct foreign currency in account
vide Bangladesh Bank
2. Correspondent Money Changes as per
arrangement
3. Direct Correspondent Bank or Money
Change
4. Through other bank’s collection
Payment Process
1. Instant cash payment
2. Account credit through transfer
3. Payment to other bank through pay
order or draft
4.6 Steps of Receiving Money
4.7 Drawing Arrangement
Drawing
arrangement is made to facilitate accounting relationship between a banks and
corresponding or exchange house, these may be in the following form:
1. Nostro A/C
A foreign currency account that a maintains
with another bank abroad is called Nostro A/C.
2. Vostro A/C
A foreign bank
maintains an account with called Vostro A/C.
3. Loro A/C
An account which
a third party maintains with a foreign bank is called Loro A/C.
4.8 Accounting System
The recording of
foreign remittance in maintaining the accounting system is as follows:
Step 1: Head Office - Debit
T.T Payable- Credit
Step 2: T.T Payable- Debit
Instant cash
payment- Credit
Other Account- Credit
Pay Order- Credit
They first debit
Head Office and credit T.T payable. Ten they pay the money those are entered
into T.T Payable in cash by debiting T.T payable and crediting Instant cash
payment or crediting Other Account or credit Pay Order Account.
4.9 Main Feature of Foreign Remittance Payment System
S/N
|
Item
|
Value
|
01.
|
Name of The System
|
Speedy Foreign Remittance Payment
System
|
Name of Sub-System
|
Account Credit System
|
|
Mode of Payment
|
Account Payee
|
|
No. of Exchange Company /Bank
|
71
|
|
02.
|
Name of The System
|
Speedy Foreign Remittance Payment
System
|
Name of Sub-System
|
Instant/Spot cash Payment
System
|
|
Mode of Payment
|
Instant Cash Payment
|
|
No. of Exchange Company/ Bank
|
71
|
Head Office,
International Division (HO/ID)
Under prior
arrangement, the remitting company remits their draft printed at banks
international division through the website and delivered the same to the
beneficiary’s home address. HO/ID arranges all the draft according to the
branch, and then provides TT to the branch through internet. These two types:
A. Cash Payment
In this system
customer comes with a pin no. and any photo identify. Officer matches the pin
no. with TT reference no. When the no match, then officer give a form.
Customers dully fulfill the form and collect money from the cash.
B. Account Holder
In this method customer must be an account
holder of the branch. Officer matches the account no & name of the account
match, then officer directly transfer the money in the account.
Other Bank
Under prior
arrangement, the remitting company remits their draft printed at banks
international division through the website and delivered the same the
beneficiary’s home address. In the event of beneficiary’s account being
maintained with other banks the proceeds are placed into payees account within
the next working day in the metropolitan cities and division HQ and within only
3 working days at the places of the country by using DD/PO/MT subject to availability
of courier services. Head Office of UBL send specific beneficiary’s name and
account name with the specific Banks. Officer of foreign remittance department
get the mail and then confirm the beneficiary name and account number of other
bank through phone call. If the name and account number is matched then they
make a Pay Order to the beneficiary’s account of that specific bank and send it
to the bank.
4.10 Duties Preformed in Receiving Cash
1. Provides PIN No. that is sent by the sender
2. Officer match the PIN No. if match then request to give national ID card,
driving license, passport or any other valid photographic identification.
3. ID is checked.
4. Customers have to fill a form, provide the ID copy.
5. After submitting the form, customer receives payment.
6. Then goes to the cash counter and receive the cash.
4.11 Errors
in Remittance Services
Some errors in
foreign remittance advice
1. Name and Account
number differs, wrong pin numbers.
2. Wrong bank or Branch
Name.
3. ID doesn’t match with
given ID.
4. Presentation of invalid
ID.
5. Amount Differ
(10,000/1, 00,000).
6. Wrong beneficiary’s
name spelling.
7. Beneficiary enters in
wrong Branch.
8. Invalid account.
9. Unverified Remittance
Transaction
10. Expired Passport
presentation.
11. Wrong Test printed
on the Instrument.
12. Wrongly download of remittance
advice.
4.12 Reasons for being delay of the payment of Foreign Remittance
A. Errors made from Remitters or
Remitting Company- Wrong account number given in the advice.
- Wrong Beneficiary name given in the advice.
- Wrong Bank location mentioned in the advice.
- Wrong Beneficiary’s Bank and Branch name.
- Stop the payment for any reasons.
B. Bank processing delay
- Insufficient cover funds
- Power failure
- Lack of uninterrupted Internet facilities
- Wrong download of remittance advice
- Problem of password lock of the company
C. Bank Delay made by
Beneficiary’s
- International delay made by the beneficiary’s bank officials
- Misplaced the instrument at the counter of beneficiary’s bank
- Non receipt of advices against the issued instrument
- Wait for passing voucher against instrument received
- Shortage of funds in rural area branches
- Unable to make payment because Bank’s of internal problem.
- Unable to produce correct Pin # Reference.
4.13 Process of Foreign Remittance
The process of
the service may be divided into three parts as follows:
Part 1
1. Remitter must go to the specific agent of money transfer
2. Remitter must provide details of the beneficiary to the agent and pay
money which will be remitted.
3. Remitter then receives a PIN Number given by the agent and details
bout the receiving bank.
4. Remitter then provides PIN No. to the beneficiary and details about
bank.
5. The agent then deposits the total amounts of remittance to NOSTRO A/C.
6. Then provide details to be made by Email.
Part 2
1. After receiving email, the head office of UBL matches them with the
amount deposited in the NOSTRO A/C.
2. The head office of then verifying the remittance and provide details
information branch wise for payment.
Part 3
1. Email is received by branch.
2. Branch made the payment by Instant cash payment software or by login
to the specific company’s account through user ID and password.
4.14 Company from Those the Money is Remitted
The total number
of correspondents and agents of the bank in abroad was 643 as on 31.12.2014. At
the same time the bank maintained drawing arrangements against wage earners
foreign remittance wit 71 exchange house worldwide. Among these 71 exchange
houses the bank has arrangements with well regarded exchange houses such as:
A. Western Union
B. Money Gram
C. Ria Fx Online
D. Trans-Fast
E. Placid Express
F. Prabhu Exchange
G. Al Ansari Exchange
H. Xpress Money
I. NBL Company
J. Sigue Global Services
K. NEC Spotcash
L. IME
M. EZ Remit
N. Prabhu Group Company etc.
Remittance Management System (RMS)
With the best effort to provide customers the best services in the
quickest possible time through which all the wage earners can be processed and
managed quickly and easily for supporting the online branches throughout the
country. This system pay the money comes from the exchange company such as
Brac Saajan Exchange Ltd.
KMB Enterprise
KS Enterprise
Sunman Global Express
Universal company
Choice Money Transfer
Tempo Exchange Company
UK Enterprise
Wall Street Money Transfer
4.15 Income Rate from the Exchange Company
UBL get charges
from the sender company for the remittance. The bank earns different income
from different company such as:
Bank earns income Tk. per transaction from Western
Union and Money Gram.
Bank gets TK. per transaction from any other company.
5.1 Analysis of Inward Remittance Trend of Bangladesh
According to the economic statistics published by Bangladesh Bank, it
seems that remittance inflow to Bangladesh has been generally increased in last
20 years. Between 1993s and onward till starting of 21st century
remittance inflow was reported at a steady rate. After 2001 remittance inflow
to our country was increasing and up to 2013-14 a record amount of 10 million
USD remittance inflows was recorded.
Year
|
Remittance
(in
Taka)
|
Growth
Rate
|
2009-10
|
322756.8
|
0.3649
|
2010-11
|
412985.29
|
0.27956
|
2011-12
|
542951.4
|
0.3147
|
2012-13
|
666758.5
|
0.22803
|
2013-2014
|
760109.59
|
0.14007
|
5.2 Yearly Growth Rate of Remittance Inflows of Bank Limited (Taka in
Millions)
Year
|
Remittance
|
Growth Rate
|
2010
|
43200.7
|
---
|
2011
|
37848.7
|
12.39%
|
2012
|
43585.6
|
15.15%
|
2013
|
44301.3
|
1.64%
|
2014
|
52030.2
|
17.45%
|
Interpretation: From the above table and graph we can see
that remittance inflow of was decreased in comparing the previous year. After
that remittance inflow is increasing. In though remittance inflow was
increased but the growth rate was 1.64% which was very low growth rate
comparing other years.
5.3 Total Remittance Inflows of (Taka in Millions)
Year
|
2011
|
2012
|
2013
|
2014
|
2015
|
Inflows
(in TK)
|
593.56
|
639.27
|
641.31
|
803.90
|
944.82
|
Interpretation: The above table
and graph represents the remittance inflows for the last five years. We can see
that remittance inflow is increasing at each. In the remittance inflow was
increased highly from the previous because of online payment of remittance
through Remittance Management Software system.
Mode of Payment
|
No. of Transaction
|
Amount (TK in Millions)
|
Account
Payment
|
588
|
915.34
|
Instant
Cash Payment
|
21768
|
29.48
|
Interpretation: The above table and graph shows that most of the payment is incurred in
instant cash payment rather than account payment. Though the number of
transaction is less in account payment then the instant cash payment, the
amount is higher in account payment.
5.5 Country Wise Remittance Inflow of (Taka in
Millions)
Country
|
UK
|
UAE
|
FRANCE
|
USA
|
OTHERS
|
2014
|
426.15
|
176.86
|
56.24
|
40.13
|
104.51
|
2015
|
501.26
|
207.86
|
68.17
|
47.24
|
122.83
|
Interpretation: The above pie chart shows the country wise remittance inflow in 2014. In
the remittance inflow from UK holds the highest percentage comparing to other
country. We see that the second position takes UAE from which country the bank
get most of the remittance inflows.
Interpretation: The above pie chart shows that in 2015 UK is also the first country from
which the highest percentage of remittance inflow is comes that is TK. 501.26
million. TK. 207.86 million comes from UAE is takes the second highest amount
of remittance inflow. France and USA takes the third and fourth position comparing
other countries.
5.6 Exchange Company Wise Remittance Inflows
Exchange Company
|
No. of Transaction
|
Inflow Percentage
|
BRAC Exchange Ltd.
|
8664
|
38.76%
|
KS Enterprise
|
3565
|
15.95%
|
UK Enterprise
|
2218
|
9.92%
|
Western Union
|
403
|
1.80%
|
Money Gram
|
406
|
1.82%
|
Others
|
7095
|
31.75%
|
Total
|
22351
|
100%
|
Interpretation: The above chart shows the exchange company wise
remittance inflow. We can see that the highest number of remittance comes from
BRAC Exchange Ltd. Western Union and Money Gram Company holds a lowest
percentage.
5.7 SWOT Analysis Bank Limited
SWOT analysis is the detailed study of an organizations exposure and
potential in perspective of its strength, weakness, opportunity and threat.
This facilitates the organization to make their existing line of performance
and also foresee the future to improve their performance in comparison to their
competitors. As though this tool, an organization can also study its current
position, it can also be considered as an important tool for making changes in
the strategic management of the organization. After completing this study, I
have found some Strengths, Weaknesses, Opportunities, and Threats of the
internal and external environment Bank
Strengths
|
Weakness
|
·
Efficient Management
·
Leading retail loan providers
·
Better location of branch
·
Interesting consumer schemes
·
Online facility
·
ATM service
·
Quick delivery of remittance
|
·
In adequate work force
·
Profit rate is less than other branches
·
Conservative loan facilities
·
Lack of sufficient own ATM booth
|
Opportunities
|
Threats
|
·
Market Leadership
·
Growth of the banking sector
·
Different consumer service scheme
·
Make the goodwill
·
Perform more quick services
·
Go beyond the national
|
·
Political instability
·
Intense competition
·
Government rules and regulation
·
Economical variation
·
Policy of competitive banks
|
5.8 Findings
During the
Internship period, I have come out with the following findings-
1. Trend of remittance inflow in Bangladesh is increasing day by
day.
2. It is found that in case of country wise remittance inflow UK holds the
highest percentage of remittance.
3.
Operation of foreign remittance service is done by only two employees in that
creates so many problems.
4.
Because of the lack of sufficient employee for handling the remittance
activities they handle the activities by internee students. The interns are new
and don’t have any training over the activities so there occurs many mistakes.
5.
Lack of space in foreign remittance section, which creates cue during rush
hours which creates barriers to provide smooth service.
6.
The branch is not getting any commission from foreign remittance business
although it is providing this service to the people to serve the society.
7. Network is not available most of the time because they use GP internet
which is provided slow service.
8.
If the server fails to work even a day than it creates problem to come foreign
remittance from head office to branch, that creates an argument between
employee and customer.
9.
Has changed their remittance application form which is very lengthy that
creates customer dissatisfaction because it is totally in English format.
6.1 Conclusion
As an
organization Bank Limited has earned the reputation of top banking operation in
Bangladesh. It is relentless in pursuit of business innovation and improvement.
It has a reputation as a partner of consumer growth. Bank Ltd. makes a strong
position through its various activities. Its number of clients, amount of
deposit and investment money increases day by day.
The bank has continued efforts
to develop relationship with foreign correspondents worldwide to facilitate the
international trade services. Correspondent Banks are the trade partners of the
bank in international trade. The bank has already achieved tremendous success
in foreign trade. This report tries to figure out most of the indicators of
problems and strengths of foreign remittance department Bank Limited as a valid
pretender in the competitive banking sector of Bangladesh. Foreign remittance
business is satisfactory and day by day increase the remittance volume.
Banks have a key role to develop
the foreign remittance business in our country. Commercial banks provide
foreign remittance services to their customers. Though foreign remittance
business is challenging, it offers an excellent opportunity to accelerate the
growth of the bank’s own business. Bank Ltd. is one of the major players in the
foreign remittance business. It has been enjoying an escalating growth in
foreign remittance business. Income from the foreign remittance business has an
important contribution to UBL overall profit. Thus foreign remittance business
has become one of the major sources of revenue for the bank.
The bank should pursue
advertising strategy aimed at raising the general level of awareness of the
range of service available giving some easy understandable details of the
particular item. In this connection to improve the business status, the bank
should strengthen its promotional programs immediately.
6.2 Recommendations
The
following important activities need to be performed by the bank to become more
efficient and effective in near future:
1.
The bank management should employ new and trained employees for the remittance
department.
2.
They should expand space in foreign remittance section for customers to avoid
cue during rush hours.
3.
Head Office may give a percentage of total profit they get from foreign
remittance to all branches.
4. They should setup a
good server for better network facility.
5. Latest update of technology should be
installed in order to stop server breakage for the payment of remittance.
6. As the worldwide
payment system has been getting speedy with innovative electronic devices, so
this bank should adopt and cope with these changing and highly demanded modern
technologies in order to enable them to provide speedy services.
7. They should apply
appropriate technology, improve speed and security, and create new system.
8. Aged officers are
not so well known about new Information Technology. The bank should train them
properly.
9. All the PCs in this
branch should be changed with update hardware and software which is very fast.
10. Bank should change
their remittance application form in Bangla format that is understandable by
the customers in order to remove customer dissatisfaction.