Means of Transferring Remittance

The cash amount to be sent from one bank to another bank is called remittance. This transaction can be carried out from one place to another place within a country and from one country to another country too. To carry out such transactions, the bank generally uses such means as bank draft, mail transfer, and telegraphic transfer. Such amount may be for personal use, for business transactions,s, and governmental use. The bank can discharge this task for its customers. The money sent from one place to another place within a country is called inland remittance and likewise from one country to another country is called foreign remittance.

To sed cash from one place to another through remittance a bank needs to deposit cash in the bank and pay applicable charges The bank takes the charge from its customers. The bank gives advice and suggestions to all about the type of currency they need to deposit and the customers must fulfill their work. The main means of remittance are briefly given below:

a) Bank Draft

One of the different effective means of remittance is a bank draft. A bank draft is a bill of exchange drawn by another bank in which a particular person or ordered by him will be immediately paid on his demand. The following particulars should be mentioned in a draft:

1. Draft
2. Amount (I words and figure) with protect graph too.
3. The name of the person who will be paid.
4. Name of the bank on which the draft is drawn.
5. The name of the bank (branch) which has drawn the draft.
6. The number of the draft and the serial number.
7. The signature of the officer
8. The seal of the bank, etc.

b) Mail Transfer

Another means of banking remittance is mail transfer. The facility of mail transfer is also available to customers for remittance from one branch of a bank to another branch of the same bank. The funds can be remitted for the credit or the remitter's account or another beneficiary's account. The remittance branch remits the funds by way of advice to the receiving branch with full particulars of the remittance. The mail transfer is sent by post to the receiving branch by way of a credit note or credit advice, which is acted upon by the drawee branch. Necessary charges are recovered by the remitting branch.

c) The Telegraphic Transfer

The telegraphic transfer is called T.T. in short-from. we should pay more charge in it than in other means. The telegraphic transfer means the transfer of money from one place to another through the bank with the medium of the telegraph. It is a very fast means. Though it has some negative aspects, it has also many beneficial aspects. In the communication world of today, computers, fax, telexes are more credible or dependable, easy, less expensive, and scientific. Generally, a very great amount is transferred through it. A special kind of number KUNJI is inserted to prove the validity of the transfer. It is called test or experiment Kunji. The bank keeps the kanji secretly. Every message of the telegraphic transfer is given by using a significant number and the transfer that comes to the bank is tested by that Kunji. The bank always should give emphasis on the operation of the telegraphic transfer in a sensitive way.

d) SWIFT Message

Nowadays, remittances of funds can also be made by SWIFT message; Society for Worldwide Interbank Financial telecommunication. The transfer of funds from one country to another is especially affected by SWIFT messages, which are prompt as well as cost-effective to a customer. Generally, remittances of funds for imports and exports are made by the banks on behalf of the customer through a SWIFT message.