Remittance Process Involves in Bangladesh

19/03/2013 20:30

Cash Remittance


Banks sell Dollar/Pound for using in abroad by the purchaser. The maximum amount of such sell is mentioned in the Bangladesh Bank publication of “Convertibility of Taka for Currency Transactions in Bangladesh”.



Purchase/ sell

Bank can purchase dollar from resident and non-resident Bangladeshi and Foreigner. Most dollars purchased comes from realization of Export Bill of Exchange.

Traveler's Cheque (TC)

Issue of TC

TC is useful to traveler abroad. Customers can encash the TC in abroad from the drawee bank. TC is alternative to holding cash and it provides better security than holding cash in hand.

Buying of TC

If any unused leaf of TC is surrendered bank buys it from the customer. All payments are made in local currency. Banks generally buy only those TC.

TC for collection

This bank for collection receives unused leaves of traveler's cheque issued by another banks. Generally it takes 21 days for collection and customer can draw cash after one month.

Telex Transfer

Outward TT

It remits fund by tested TT via its foreign correspondence bank in which it is maintaining its NOSTRO Account.

Incoming TT

It also makes payment according to telegraphic message of its foreign correspondence bank from the corresponding VOSTRO Account.

Foreign Demand Draft

Bank issue Demand Draft in favor of purchaser or any other according to instruction of purchaser. The payee can collect it for the drawee bank in which the Issuing bank of Demand Draft holds its NOSTRO Account. Bank also makes payment on DD drawn on this bank by its foreign correspondence bank through the VOSTRO Account.

In these processes of remittance, bank must have to make profit as a business institution. Profit is made in two ways-

  • Commission charged
  • Difference in the buying and selling rate.