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 Remittance
Outward 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

Following are the 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 21^st 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.

5.4 Scenario of Total Account Payment and Instant Cash Payment .

 

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.