I Prepared For: MD. Shibli Shahriar Assistant Professor Faculty of Business and Economics Daffodil International University Prepared By: K a z i M d . M o n ir u l I s la m ID : 052-11 -907 Program: BBA Date of Submission: DAFFODIL INTERNATIONAL UNIVERSITY Dhanmondi, Dhaka II Letter of submission Date: July 26. 2007 MD. Shibli Shahriar Assistant Professor Intern Supervisor, Dept. of Business & Economic Daffodil International University. Subject: Prayer for acceptance of internship report. Dear Sir, Here is the report titled “A Study on Remittance Section; Rupali Bank” that you advised me to prepare as partial requirement of the course of BBA.

I have exerted my best effort in preparing this report. So, I request you to accept the report and give me a proper suggestion to work in the battle field of life. Sincerely yours, Kazi Md. Monirul Islam ID # 052-11-907 Batch # 11th Program # B. B. A Major in Marketing Daffodil International University III Disclaimer The work I have presented does not breach any existing copyright and no portion of this report is copied from any work done earlier for a degree or otherwise. I further undertake to indemnify the department against any loss or damage arising from breach of the foregoing obligations.

I do hereby solemnly declare that the work presented in this Internship Report has been carried out by me and has not been previously submitted to any other University/ College/Organization for academic qualification/certificate/diploma or degree. …………………………… Kazi Md. Monirul Islam ID: 052-11-907 BBA Program Department of Business & Economics Daffodil International University IV Supervisor’s Certificate This is to certify that the Internship Report on “A Study on Remittance Activities of Rupali Bank Ltd, Mirpur Br, Dhaka” in the bonafide record at the report is done by Kazi Md.

Monirul Islam; ID: 052-11-907, as a partial fulfillment of the requirement Bachelor of Business Administration (BBA) degree . The report has been prepared under my guidance and is a record of the bonafide work Carried out successfully. . …………………………… Signature of the Supervisor Md. Shibli Shahriar Internship Supervisor BBA Program Daffodil International University V Acknowledgement To perform internship program successfully and report writing on it is not an easy task. It mainly requires help and co-operation from the respective persons.

At the time of internship, I felt such and obtained cordially. So, at the time of writing this report I recalled those kind-hearted persons with best regards. First of all, I am expressing my sincere gratefulness to Almighty Allah for enabling me to prepare this Report. I would like to give my heartiest gratitude to our Pro. VC sir for issuing a forwarding letter to Uttara Bank Limited, by which I had started my internship. Then I would like to express my gratitude to my advisor Md. Shibli Shahriar, for his cordial help, advice and proper guideline that inspired me to perform my duty properly.

Again, I would like to express my gratitude to Kazi Md. Neamot Ullah, General Manager of Rupali Bank Ltd, for helping me to get various financial data. Then I want to give my thanks to Mr. Prosanto Babu, Liza Apa, and other different officials of, Mirpur branch, for their co-operation. I express my gratefulness to all my colleagues for their cordial help and friendly character. Finally, I would like to extend my deepest thanks to my parents and other family members. Without their co-operation I would not able to complete my BBA program. VI Table of Contents

Particulars Chapter 1: Introduction of the Report 1. 1 Background of the Study 1. 2 Origin of the Report 1. 3 Limitations of the Study Page No. 1-3 2 2 3 Chapter 2: The Bank at a Glance 2. 1 History of the Bank 2. 2 Mission of the Bank 2. 3 Information of Branches 2. 3. 1 Number of Branches 2. 3. 2 Number of Zones & Corporate Br 2. 4 General Banking Activities 2. 5 International Banking 2. 6 Management Hierarchy of the Bank 2. 6. 1 Board of Directors 2. 6. 2 Organizational Structure of Rupali Bank 2. 6. 3 Managerial Hierarchy of Rupali Bank Ltd 2. Current Business Scenario 2. 7. 1 Present Capital Structure 2. 7. 2 Break up of Paid-Up Capital 2. 7. 3 Number of Divisional Branches 2. 7. 4 Scenario of Profit & Loss 2. 7. 5 Information Regarding Employees 2. 7. 6 Assets & Liabilities of the Bank 4 – 13 5 5 5 5 6 7 8 9 9 9 10 11 11 11 11 12 12 13 VII Chapter 3: Project Part 3. 1 Introduction of the Issue 3. 2 Justification of the Report 3. 3 Objectives of the Study 3. 4 Methodology of the Study 3. 4. 1 Flow Chart of the Study 3. 5 Bank Remittance 3. 6 Demand Draft 3. 6. 1 Issuance of Demand Draft 3. 6. Procedure of Payment 3. 6. 3 Cancellation of Draft 3. 7 Mail Transfer 3. 8 Telegraphic Transfer 3. 9 Payment Order 3. 9. 1 Duplicate P. O. 3. 9. 2 Duplicate DD 3. 10 DD Received for Collect 3. 11 Clearing House 3. 11. 1 Collection Procedures for Clearing 3. 12 Foreign Remittance 3. 13 Facilities with Foreign Remittance 3. 14 Facilities in F. C Account 3. 15 Financial Data 3. 16 Problems Identification Findings Recommendations Conclusion 14 – 32 15 15 16 16 17 18 19 19 20 20 21 22 23 23 24 24 25 25 25 26 27 28 – 31 32 33 33 34 Reference: Appendix: 36 – 39 5 VIII Table of Charts/ Diagrams Particulars Number of Zones and Corporate Offices Managerial Hierarchy of Rupali Bank Ltd Number of Divisional Branches Scenario of Profit & Loss Information regarding Employees Assets & Liabilities of the Bank flow chart of the Study Business Situation of Local Remittance till Sep-2008 Income generated by Local Remittance Business Situation of Foreign Remittance till Sep-2008 Foreign Remittance Business Page No. 6 10 11 12 12 13 17 28 29 30 31 IX Chapter-1 Introduction of the Topic Chapter – 1 X Introduction of the Topic . 1 Background of the study In the age of globalization, the importance of banking sector is beyond description. Banking sector is going ahead with the improvement and invention of new services and offerings to gather and retain more customers. Besides other banking activities “Remittance” has become an essential part of a Banks daily activity to perform. In our daily life we usually use the tools like DD, TT, MT etc in order to sent money from one place to another. Again, we know that foreign remittance has a great impact on our national economy.

Internship in Rupali Bank Ltd (Mirpur Br) has brought me the opportunity to know details about various tools of remittance. At the vary beginning of the internee period, I was too much interested about Loan sanctioning and recovery system of a bank like Rupali Bank Ltd but in a few days I recognized that my branch deals with “remittance” more then any other banking activities including loans. Working with remittance system in daily Banking day turns my attention from loans to remittance which creates the background of the study. 1. Origin of the Report This report is based on an internship program at Rupali Bank Limited to gather practical knowledge about banking activities. This is followed by practical experiences in the Mirpur branch of Rupali Bank Limited. Each intern must carry out a specific project, in order to report on specific activity of the organization. Consequently a report based on the projects is to be submitted to both the authority of Rupali Bank Ltd and the University. My topic for this internship report is “A Study on Remittance Section; Rupali Bank Ltd”.

Rupali Bank Ltd deals with almost every activities of Banking but XI Mirpur Br. has a special involvement with remittance. So it is the main reason behind choosing this topic. 1. 3 Limitations of the Study: There are some limitations in my study. I faced some problems during the study, which are given below: Insufficient data: Some essentials information could not be collected due to confidentiality of business. Lack of Supervision: Few officials sometimes felt disturbed, when they were busy with their tasks. Sometimes, they didn’t want to supervise due to pressure of work load.

XII Chapter-2 The Bank at a Glance XIII Chapter – 2 The Bank at a Glance 2. 1 History of the Bank Rupali Bank Ltd. was constituted with the merger of 3 (three) erstwhile commercial banks i. e. Muslim Commercial Bank Ltd. , Australasia Bank Ltd. and Standard Bank Ltd. operated in the then Pakistan on March 26, 1972 under the Bangladesh Banks (Nationalization) Order 1972 (P. O. No. 26 of 1972), with all their assets, benefits, rights, powers, authorities, privileges, liabilities, borrowings and obligations. Rupali Bank worked as a nationalized commercial bank till December13, 1986.

Rupali Bank Ltd. emerged as the largest Public Limited Banking Company of the country on December 14, 1986. The Head office of Rupali Bank is situated at – 34, Dilkusha Commercial Area, Dhaka, Bangladesh. 2. 2 Mission of the Bank The bank participates actively in socio-economic development of the country by performing commercially viable and socially desirable banking functions. 2. 3 Information of Branches 2. 3. 1 Number of Branches Rupali Bank operates through 492 branches. It is linked to its foreign correspondents all over the world. 2. 3. Number of Zones and Corporate Offices The Corporate Head Office of the Bank is located at Dhaka with one local office (Main Branch), six corporate branches at Dhaka, one in Chittagong and twenty-five zonal offices all over the country. XIV Number of Zones and Corporate Offices Division Dhaka Chittagong Rajshahi Khulna Barisal Sylhet Grand Total = No. of Zones 8 5 5 3 2 2 25 No. of Corporate Br. 6 1 00 00 00 00 7 Total 14 6 5 3 2 2 32 XV 2. 4 General Banking Activities Rupali Bank Ltd. extends all the Banking facilities and services to customers.

The Bank has a very wide network of activities and services both in urban and rural areas through its 492 branches all over the country. Deposit schemes –Savings Deposit –Current Deposit –Short Notice Deposit –Time Deposit –DPS –Rupali Deposit Pension Scheme –Festival Deposit –Call Deposit Interest Rates SL No. 1. 2. 3. Types of Deposit Savings Deposit Short Notice Deposit Time Deposits a) 3 months & above but less than 6 months b) 6 months & above but less than 1 year c) 1 year & above but less than 2 years d) 2 years & above but less than 3 years Interest Rate per annum 4. 50% 2. 75% 6. 50% 6. 75% 7. 25% 7. 50% . 5. 6. DPS Rupali Bank Deposit Pension Scheme Rupali Bank Deposit Pension-Scheme 2 15. 00% 8. 00% 6. 50% The rates of interest are changeable from time to time depending upon market competition. XVI 2. 5 International Banking: Rupali Bank Ltd. engages itself in providing best service to its valued clients by serving through 492 branches in urban, rural and remote areas over the country. It has a good number of correspondent banks world-wide and it handles a big volume of export and import business. It is also engaged in collecting home-based remittances of the people and paying the same to the beneficiary promptly.

Products and Services Related International Banking are: Export Credit (Pre-shipment & Post-shipment) Suppliers Credit Letter of Credit (Import) Guarantees in Foreign Currency (a) Bid Bond (b) Performance Guarantee (c) Advance Payment Guarantee Bill purchasing/ discounting Remittance, Collection, Purchases & Sales of Foreign Currency & Traveler’s Cheques NRTA (Non-Resident Taka A/C ) NFCD Account (Non-Resident Foreign Currency Deposit) RFCD Account (Resident Foreign Currency Deposit) Convertible & Non-convertible Taka Account Forward contracts Correspondent Banking Relations

XVII 2. 6 Management Hierarchy of the Bank 2. 6. 1 Board of Directors The Board of Directors is composed of eight members headed by a Chairman and the directors comprised of representatives from both public and private sectors and shareholders. The Bank is headed by the Managing Director (Chief executive) who is a reputed professional Banker. 2. 6. 2 Organizational Structure of Rupali bank limited: Designation in ascending order Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Designation Managing Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Vice President Senior Assistant Vice President Assistant Vice President First Assistant Vice President Senior Executive Officer Executive Officer Principal Officer Senior Officer Management Trainee Officer Junior Officer Assistant Officer Trainee Assistant XVIII 2. 6. 3 Managerial Hierarchy of Rupali Bank Ltd: Chairman Top Management Board of Directors Executive Committee Managing Director Additional Managing Director Deputy Managing Director Senior Executive Vice President Executive Level Management

Executive Vice President Senior Vice President Vice President Senior Assistant Vice President Assistant Vice President First Assistant Vice President Mid Level Management Senior Executive Officer Executive Officer Principal Officer Senior Officer Junior Level Management Management Trainee Officer Junior Officer XIX 2. 7 Current Business Scenario 2. 7. 1 Present Capital Structure Authorized Capital Paid up Capital : Tk. 7000 million (US$ 120. 70 million) : Tk. 1250 million (US$ 21. 55 million) 2. 7. 2 Break up of paid up Capital (a) Government shareholding : 93. 23% (b) Private shareholding : 6. 77 % 2. 7. 3 Number of Divisional Branches

Name of The Division Dhaka Chittagong Sylhet Barisal Khulna Rajshahi Grand Total = Branches of Urban Area 89 66 13 13 20 34 235 Branches of Rural Area 53 45 27 22 33 77 257 Total 142 111 40 35 53 111 492 XX 2. 7. 4 Scenario of Profit & Loss (2005 – Sep 2008) (In Crore Taka) Year Branches In Profit Branches In Loss Branches (+,-) Head office (+,-) Net Profit + /Loss (+ , – ) Number Quantity 2005 2006 2006 Sep,07 Sep,08 455 435 451 432 433 156. 03 163. 65 163. 60 115. 81 140. 38 Number Quantity 38 57 41 60 59 16. 40 21. 54 39. 99 45. 39 61. 71 139. 63 142. 11 123. 61 70. 42 78. 67 (-)58. 55 (-)116. 64 (-)86. 23 (-)65. 6 (-)48. 92 81. 08 25. 47 37. 38 4. 86 29. 75 2. 7. 5 Information regarding Employees (30 – 09 – 2007) Employees Officer : 1st Grade 2nd Grade (A) Total = Officer : 3rd Grade 4th Grade (B) Total = Total ( A+B) = Authorized Current Deficits 2556 2214 4770 1557 1206 1763 (-) 999 (-) 1008 (-) 2007 3031 2135 5166 9936 316 1119 1435 4198 (-) 2715 (-) 1016 (-) 3731 (-) 5738 XXI 2. 7. 6 Assets & Liabilities of the Bank (30 – 08 – 2007) (In Crore Taka) Liabilities Loans from other Banks & Financing Companies Quantity 52. 33 Assets Cash(including Foreign Currency) Reserved Money in other Banks Total Deposits & other accounts 6655. 1 Quantity of money Payable in short term Bills Payable Other Liabilities Equity 94. 52 1962. 47 (-)1047. 03 Investment Loans Fixed Assets Other Assets Total (Excluding Karichi Br. ) 7717. 70 Total (Excludig Karichi Br. ) 1395. 92 4688. 10 53. 53 820. 61 7717. 70 275 377. 36 Quantity 107. 18 XXII Chapter-3 Project Part XXIII Chapter – 3 Project Part 3. 1 Introduction of the Issue Now a day, a modern banker must have to perform a number of ancillary services, besides performing the two essential functions of accepting deposits and investing its funds.

Remittance of funds can be considered as one of the most important ancillary service provided by a Bank. With a network of the branches spread over the entire country banks are eminently suitable institutions for the remittance of funds from one place to another. Bank remittance is safe, swift, inexpensive, and simple. Bank takes the risk of theft or loss of customer’s money in exchange of a very little commission. Again, the reserve of foreign remittance plays a great role in national economy.

With various types of accounts maintaining in international branches and coordinating international banks these foreign currencies are being carried sending by non-resident Bangladeshis. 3. 2 Justification of the Report Due to market economy a huge competition exists among the nationalized, foreign and private commercial banks and therefore the expectation of the customers growing rapidly concerning the banking operation & how customer service can be more attractive. Bank Remittance- the way of sending customers money from one place to another, has becomes the most important part of customer service in recent years.

On the other hand, these ancillary services are generating a great income to the Banks. Under the above circumstances, it has become necessary for Rupali Bank to focus its’ attention towards the improvement of various customer services and increase the efficiency to attract and also retain the customers. That is why it is quite justified to make an in-depth study about its operation and evaluate service provided by this bank and scope for its improvement. XXIV Since marketing is the area of my study, Bank Remittance seems preferred to me rather then any other banking activities to study.

Thus I think, this study will vehemently help me to go forward and improve my career path. 3. 3 Objective of the Study: The objectives of the study are as follows: To describe different activities in the Remittance section of Rupali Bank, Mirpur Branch. To find out the problems in those activities To suggest some recommendations to the problems 3. 4 Methodology of the Study While conducting the study, sources were explored for primary information and data. But hardly any updated data could be found. In the absence of updated information or data dependence on secondary data has been inevitable.

However, whenever possible primary data has been used. Data were also collected by interviewing the responsible officers and from some documents & statements printed by the Rupali Bank. Rupali Bank also helped me in collecting data providing books and Bank’s annual report. XXV 3. 4. 1 flow chart of the Study PLANNING DESIGNING THE LAY OUT THE APPROACH -THE LITERATURE REVIEW -THEORIETICAL CONSIDERATION METHODOLOGY SECONDARY SOURCES PRIMARY SOURCES a) Annual report a) Face to face conversation with Bankers b) Working papers c) Office files d) Selected Books COLLECTING INFORMATION ANALYZING PREPARING THE REPORT

SUBMISSION OF THE REPORT XXVI 3. 5 Bank Remittance: One of the most important aspects of the Commercial Banks is rending services to its customers. Among different services render by a Commercial Banks to its customer remittance facilities are very well known and popular to the customers. The word “Remittance” means sending of money from one place to another branch within the country. There are two types of Remittance: Inward & Outward. The Commercial Banks Remittance facilities enable its customers to avoid risk arising out of theft or loss in carrying cash money from one place to another or making payment to some one in another place.

Banks take the risk and ensure payment to the beneficiary in exchange of a little bit benefit known as Exchange or Commission. Considering the Urgency and nature of transaction, the mode of Bank remittance may be categorized as: Demand Draft (DD) Mail Transfer (MT) Telegraphic Transfer (TT) Payment Order (PO) Traveler Cheques. The following register books are to be maintained for remittance concern: DD. MT. TT Advice Register DD Payment register Day Book TT Payment Register Book Ex-Advice Payment Register Book XXVII 3. 6 Demand Draft: Demand Draft is an instruction payable on demand.

It is negotiable instrument issued by the branch Bank containing an order to another branch of the same Bank to pay a certain sum of money to a certain person or order on demand. This instrument can be purchased by a customer from a particular Bank branch for himself or for beneficiary and can handed over to the purchaser for delivery to the beneficiary. The payee or beneficiary will claim the proceeds of the instrument by producing the same to the concerned paying branch. Demand Draft may be paid in cash to the payee on proper identification or the proceeds may be credited to his account. Banks issue drafts for a nominal commission.

The commission depends upon the amount to be transmitted. The purchaser of the draft needs not to be a customer or account holder of the Bank. Draft can be crossed also. 3. 6. 1 Issuance of Demand Draft While issuing demand Draft, an official must be confirmed about the existence of the Bran where the DD is to be issued or drawn as asked for by the applicant. Application on Banks prescribed form (F-117) for DD be obtained from the applicant duly filled and signed by then. Thereafter, Applicant will be asked to deposit the amount or DD and exchange Commission commuted correctly at the prescribed rate.

On receipt of cash voucher will be passed and scrolled by the officers. DD will be issued and recorder to the DD issues register filling the appropriate columns. Test number (if required) is affixed on both DD and Advice as per instruction. It is mentionable here that DD application is treated as Credit Voucher or SBG A/C (IBT A/C) and reported to HO, Recon, Division showing credit entry against contra Branch (paying Branch). For any amount of DD issued, a relative DD Advice and sent to paying branch where the Advice converted into Voucher. XXVIII The minimum exchange of demand drafts or Bank Drafts is Tk. 0/- (including VAT Tk. 3/-) for the amount of Tk. 1 to Tk. 20000. After that that exchange is charged Tk. 1/-for each Tk. 1000/-, and VAT is 15% of the commission. 3. 6. 2 Procedure of Payment Proceeds of Demand Draft is received by the paying bank as and when it responds the relative advise on the receipt of DD Advises from different branches, the paying banker will verity the genuineness of the Advice by way of verifying the number and signature. Beside this, Drafts payable can be made without the Advice of issuing Bank and on that time the payment is called Acceptance Payment.

Total amount of advice will be debited to SBG A/C and credited to Drafts payable A/C on production of Demand Draft by the beneficiary payment will be made by Debit to the account credited earlier. If the payment is to be made before receipt of the Advice, DD is paid being recorded in Ex-Advice Register by Debiting the Drafts Payable Ex-Advice A/C (DD paid without Advice). On receipt of the Advice, it will be entered into DD/MT Advice Received Register or Draft Payable Register and the amount will be credited to Drafts Payable A/C. DD paid without Advice as the case may be.

Before making payment of the DD, the branch will ascertain the genuiness of its issuance as well as the genuiness of the payee. Open Drafts may be paid on proper identification of the payee and crossed Drafts can never be paid in cash over the counter. 3. 6. 3 Cancellation of Draft In some cases, the purchaser of the bank draft may ask the issuing branch to return the amount of DD stating its non-requirement. In these cases, the issuing Branch will obtain written application from the purchaser whose signature must be tallied with the signature obtained earlier.

An amount Tk. 25/- be recovered from the purchaser as cancellation charges and will be Credited to the Commission A/C the purchaser will acknowledge receipt of the proceeds writing the words received payment by cancellation and will sign. On revenue stamp to be affixed on the revenue of the Draft. In this case, payment is made by Debit to PBG A/C and a relative cancellation advice is sent to the Issuing Branch. XXIX 3. 7 Mail Transfer The facility of transforming money by Mail is available to customers having some sort of an account with the Bank.

The remitter deposits the amount to be transferred with small commission with the remitting Branch. It is an Advice issued by a Branch to another Branch for crediting the specified amount to the account of the payee maintained with them. It is a non-negotiable instrument and generally is not handed over to the customer rather sent through Post Office to the concerned Branch for credit to the respective amount. In some cases, proceeds of MT. may be paid to the beneficiary by issuing Payment Order (PO) if he maintains no account with that branch.

In such cases, Full Address of the beneficiary requires to be mentioned by the applicant. On that time, MT itself treated Advice as well as credit voucher also of the paying branch, no separable advice is issued by the issuing branch. On receipt of the MT genuineness is determined by means of verification of signature and test number (if any payment is made by debit to issuing branch through PBG A/C and reported to Head Office for reconciliation. Remittance or money by Mail Transfer is relatively cheaper, quite safer and convenient.

Mail Transfer is affected not only for remittances within the country but also for international remittances. MT for local transfer (say, within the area of Dhaka) a special MT register book is maintained as in the case like DD. MT normally issued from branch to branch of the same Bank. An extra document is needed for Mail Charge. Normally the Mail is given Tk. 25/- for the amount Tk. 50,000/- and above. Below 50,000/- there is no any Mail Charge. The commission charged for MT is given below Tk 1 up to Tk. 49,000/Tl. 50,000/- and above Tk. 15/Tk. 40/- XXX Specimen Receipt (MT/TT) Date: ………………….

Payees Name: ………………………………………………………. Branch Name: ……………………………………………………… Amount: …………………………….. Exchange………………. Commission: …………………… Postal Charge: …………… 3. 8 Telegraphic Transfer Telegraphic transfers are affected by telegram, telephone, or telex as desired by the remitter. Transfer of founds by telegraphic transfer is the most rapid and convenient but expensive method. For this, telegraphic technologies need to be available in all the areas.

In this case, the issuing branch sends a message telegraphically to credit the specified amount to the beneficiary through his A/C maintained with them or by issuing TT, PO, if A/C is not maintained by the beneficiary, Telegraphy message may be codes but must be tested. Paying branch will decode the TT being satisfied on the contents will make payment by debit to issuing branch entering the TT into TT Register and preparing a credit voucher for credit to the payees A/C. But, for big amount of TT or in case of any doubt, confirmation must be obtained before making payment.

Charges of TT are as follows: Amount of TT 1-20000/25000/Up to 1 Lac Commission Postage 20/25/100/15/Constant Constant Commission 50/Constant + 30/- constant VAT 3/15%/-of commission 15%/-of commission XXXI 3. 9 Payment Order Bank’s payment order is an instrument which contains an order for payment to the paid to effect local payment whether on behalf of the Bank or its constituents. In the beginning stage, PO was issued only to effect local payments of Bank own obligations. But, at present, it is also issued to the customers which they can purchase to deposit as security money or earnests money.

The Bank’s payment orders are in the form of receipts and issued by joint signature of two officials. It ensures payment to the payee as the money deposited by the purchaser of PO is kept in the Bank’s own A/C named “Payment Order A/C”. Payment of this instrument to be made from the branch it has been issued. It is not transferable and, therefore, it can only be paid to: • • The payee on identification. The payee’s Banker, who should certify that the amount would be credited to payee’s A/C. • A person holding the letter of authority from the payee whose signature must be authenticated by the payee. The purchaser by cancellation provided the original PO is surrendered by him to the Bank. Charges of P. O. Amount to be Sent 1-1000 1001-Below 1 Lac 1 Lac-Below5 Lac Commission 20/30/50/VAT 3/5/15%/- of commission XXXII 3. 9. 1 Duplicate PO As Bank’s Payment Order is not transferable, Duplicate thereof is issued to the purchaser without obtaining letter of indemnity provided they confirm in writing that the originals have been lost and that these will be returned to the Bank whenever traced. 3. 9. 2 Duplicate DD In some cases, it may be happened that the DD is lost and reported to the concerned Branches.

In this case, issuing Branch will communicate with the paying Branch and will obtain confirmation regarding non-payment of the DD & Payment Branch will exercise cautions against payment of DD including caution marking on the respective DD advice with the words “Care Reported Lost” issuing Branch will then issue a duplicate DD on obtaining of indemnity bond from the Applicant signed by two persons known to the Bank s sureties. In such case, duplicate DD be marked with the words: “DUPLICATE IN LIEU OF ORIGINAL NO ……. Insurance of duplicate DD be noted against the entry of original one. 3. 10 Demand Drafts received for Collect: a) All the Inward Demand Drafts will be received by the Managers or Accountant and examine by him to ensure that there is no unreasonable gap between the dates of purchased receipt at branch. Cases of delay will be reported to the Head Office & a copy to the Regional Office of the purchase office. These will be numbered with D. D. R numbers, promptly acknowledge, entered individually in the Demand Draft received for realization register, without passing any entries. ) Clearing cheque and cheque on the branches will be paid or returned unpaid the same day. Other Demand Drafts entered in the register will be presented or payment to the drawee through the cash department. c) On realization the proceeds together with the overdue interest, if any Demand Draft will be credited to the purchasing offices in the Rupali Bank General Account sending Transfer Responding, Advises (TRA) and reported to Head XXXIII Office on schedule. Unpaid DDR’s will be returned to the purchasing offices along with the objection Memo. 3. 1 Clearing House As a cheque payment order or bill come from a Bank within the range of local Clearing House then it is sent for collection through Clearing House. The Cheque may be crossed or not, if a customer of Rupali Bank deposits a cheque of another Bank which is within clearing, then Rupali Bank will Credit his Account and collect it (cheque). Though the amount is credited in the customers account but will not get the money until the cheque is honored. 3. 11. 1 Collection procedure for clearing: i) ii) The cheque is first deposited through a received seal with the help of a slip.

The collecting Bank gives a crossing with “Rupali Bank Dilkusha Corporate Branch”. It indicates that the Mentioned Bank is the Collecting Bank. iii) Then an entry has to be given in the Outward Clearing Register along Clearing and an “S” (subsidiary) Seal. iv) After that, the cheque has to be sent to Rupali Bank Local Office along with other cheques (if any). These sorts of vouchers are prepared for this purpose. If the cheque is drawn on other branch of Rupali Bank within the same Clearing area then it needs be collected through inward Clearing House of Rupali Bank itself.

If the cheque is or other than Rupali Bank then the Cheque has to be sent to the Bangladesh Bank Main Clearing House through Rupali Bank Local Office clearing house. 3. 12 Foreign Remittance XXXIV With its good number of Nostro Accounts with well-reputed Foreign Banks, Rupali Bank is engaged in bringing the hard-earned foreign currency of the Bangladeshis working abroad to the country in shortest time. There are 17 (Seventeen) Exchange Companies in Middle East Countries with whom there is Taka draft drawing arrangement of Rupali Bank Ltd. Proposal of Taka drawing arrangements with other Exchange Companies are under process.

Procedures to sent money from a foreign country through Rupali Bank are as follows Beneficiary must have a Bank account in any branch of a Bank. An application must be submitted, with fill up a specific form through any bank or exchange house stated in the banks website or prescribed by the banker. Remitter should be careful to write the following information’s in the form 1. Name of the beneficiary 2. Name of the bank, branch and account number of the beneficiary Two officers signature must be in the draft to prove its validity Must have to be careful about date and the amount of money written in the draft . 13 Facilities allowed in connection with foreign remittance: a) No collection commission is realized for collection of Taka draft from branches of same bank or from branches of other banks. b) Arrangement has been made for payment of remittance within 3 days. c) Complaint Cell has been opened in Head office where both remitter & beneficiary may place complain regarding payment of remittance. XXXV 3. 14 Facilities in F. C. Accounts Nominee can operate the account. • Interest is paid on F. C account. Balance in F.

C A/C can be utilized for import of goods. Balance available in the F. C. account may wholly or partially be sent abroad. Foreign currency brought in by Wage Earners can be deposited in the F. C A/C. Non-resident Foreign Currency Deposit A/C (NFCD A/C) can also be opened by Wage Earners. • • • • • These A/Cs may be maintained as long as the account holder desires. XXXVI 3. 15 Financial Data Regarding Remittance 3. 15. 1 Rupali Bank Ltd Planning & Research Division Head office, Dhaka Sub: Business Situation of Local Remittance till Sep-2008. In Lac Taka) Deviation Increase/Decre from ase Expectatio Comparing n Sep-2007 F= G= (E-C)/C (E-D)/D *100 *100 (-)68% (-)41% (-)73% (-)29% (-)30% 42% (-)53% (-)7% (-)20% 73% (-)45% 4% (-)53% 12% (-)24% 41% (-)45% 10% (-)53% 6% (-)53% 9% (-)46% 3% (-)37% 10% (-)56% (-)2% (-)51% (-)6% (-)43% 22% (-)45% 15% (-)43% 40% (-)38% 19% (-)49% (-)6% (-)43% 9% (-)47% 8% (-)39% 25% (-)42% 17% (-)41% 14% (-)58% (-)9% (-)48% 24% (-)49% 20% (-)63% (-)13% (-)30% 31% Dec2006 Dec-2007 Expectatio n In 2008 (C) Sep-2007 Sep-2008 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Name Of the Region Local office Dhaka Central Dhaka North Dhaka South Narayangong Mymesing Jamalpur Tangail Faridpur Chittagong West Chittagong East Noakhali Comilla Sylhet Moulavi Bazar Khulna Barisal Patuakhali Jossore Kushtia Rajshahi Pabna Bogra Rangpur Dinajpur Feni Purana Paltan Foreign Bus. Br. Ramna Br. Motijhil (A) (B) (D) (E) 26 28 49 19 25 46 14 24 36 28 40 31 51 21 15 39 48 22 31 10 17 32 22 24 18 32 5 2 15 8 41. 00 30. 24 66. 42 19. 23 19. 28 48. 66 13. 75 25. 01 41. 90 22. 91 28. 97 31. 13 58. 04 18. 57 14. 86 46. 22 49. 87 15. 40 30. 72 10. 84 14. 49 32. 00 24. 10 24. 00 17. 08 25. 57 6. 02 2. 34 11. 93 7. 41 0 45 90 30 30 70 25 35 60 35 45 45 75 30 22 65 75 27 45 16 22 48 36 36 25 40 10 5 20 10 32. 00 17. 28 44. 78 15. 05 13. 91 37. 20 10. 47 18. 95 30. 00 15. 45 19. 35 23. 64 42. 97 13. 36 11. 40 30. 61 36. 14 11. 01 23. 65 8. 58 11. 47 23. 73 17. 62 18. 01 13. 02 18. 38 4. 19 2. 13 8. 48 5. 32 19. 00 12. 19 63. 42 14. 05 24. 060 38. 64 11. 74 26. 68 33. 00 16. 37 21. 09 24. 30 47. 36 13. 13 10. 68 37. 30 41. 56 15. 42 28. 05 8. 10 12. 50 25. 58 22. 03 21. 00 14. 87 16. 71 5. 19 2. 55 7. 42 6. 97 XXXVII 31 32 33 34 35 Andorkillah Rupali Sodon Total = Central Division International Div General Banking Total = 5 11 794 00 00 00 794 . 78 4. 96 805. 70 00 00 00 805. 70 8 15 1200 00 00 00 1200 2. 63 3. 91 584. 69 00 00 00 584. 69 1. 06 3. 25 645. 27 00 00 00 645. 27 (-)87% (-)78% (-)46% 00 00 00 (-)46% (-)60% (-)17% 10% 00 00 00 10% Income by Local Remittance 1800 1600 1400 1200 1000 800 600 400 200 0 2005 2006 2007 Sep- Sep07 08 Year T a k a (In L a c ) Target Achievement 3. 15. 2 Income generated by Local Remittance Year Target Achievement Percentage of Achievement comparing Target 38. 56% 49. 63% 79. 80% 58. 46% 53. 77% In Lac Taka Increase/Decrease Comparing the Last Year 9. 98% 28. 69% 0. 50% (-)3. 88% (-)10% XXXVIII 2005 2006 2007 Sep 2007 Sep 2008 600 1600 1000 1000 1200 617 794 798 584. 69 645. 27 3. 15. 3 Rupali Bank Ltd Planning & Research Division Head office, Dhaka Sub: Business Situation of Foreign Remittance till Sep-2008. (In Lac Taka) Deviation Increase/Decrease from Comparing SepExpectati 2007 on F= G= (E-C)/C (E-D)/D *100 *100 (-)29% 35. 44% (-)35% 29% (-)39% 24% (-)33% 38% (-)55% 1% (-)38% 44% (-)32% 43% (-)29% 53% (-)29% 43% (-)40% 17% (-)45% 10% (-)38% 33% (-)31% 38% (-)53% (-)1% (-)45% 12% (-)45% 13% (-)38% 11% (-)41% 33% (-)22% 63% (-)32% 41% (-)20% 48% (-)33% 38% (-)44% 18% (-)40% 49% (-)52% 49% (-)39% 18% (-)99% (-)97 (-)37% 73% (-)26% 59% (-)46% 25% (-)46% (-)15%

Dec2006 Dec2007 Expectation In 2008 Sep-2007 Sep2008 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Name Of the Region Local office Dhaka Central Dhaka North Dhaka South Narayangong Mymesing Jamalpur Tangail Faridpur Chittagong West Chittagong East Noakhali Comilla Sylhet Moulavi Bazar Khulna Barisal Patuakhali Jossore Kushtia Rajshahi Pabna Bogra Rangpur Dinajpur Feni Purana Paltan Foreign Bus. Br. Ramna Br. Motijhil Andorkillah (A) (B) (C) (D) (E) 852 4697 10514 11881 5005 3064 1296 10978 3178 4527 7793 16208 33350 20735 8425 1009 5060 672 1586 758 2466 2289 3805 744 248 17810 688 155 172 112 273 343 3776 12049 13956 5225 3344 1398 12211 4116 4837 9153 17247 31887 22483 8292 1077 4428 635 1666 827 2526 2681 3905 846 184 17206 727 202 210 305 368 2000 6500 18000 21000 9000 5000 2000 18500 6000 7200 13500 25500 46000 32700 12300 1600 6500 1000 2500 1200 3500 4000 5000 1200 400 25000 1200 300 300 500 500 39 3285 8834 10195 4041 2163 952 8566 2967 3678 6678 12678 22833 15488 6091 782 3668 447 1190 580 1888 1950 2389 479 129 12916 582 110 140 217 318 1421 4254 10993 14024 4065 3104 1360 13066 4248 4295 7369 16842 31619 15332 6800 882 4055 594 1943 816 2803 2686 2819 715 192 15184 16 190 223 272 270 XXXIX 32 33 34 35

Rupali Sodon Total = Central Division International Div General Banking Total = 147 180497 00 00 00 180497 70 189180 00 00 00 189180 100 280000 00 00 00 280000 42 136315 00 00 00 136315 74 172527 00 00 00 172527 (-)26% (-)38% 00 00 00 (-)38% 76% 27% 00 00 00 27% Foreign Remittance Business 300000 250000 200000 Taka 150000 100000 50000 0 20 05 20 06 20 0 Se 7 p0 Se 7 p08 Target Achievement Year 3. 15. 4 Foreign Remittance Business In Lac Taka Increase/Decrease Comparing the Last Year 20. 30% Year Target Achievement 2005 150000 136411 Percentage of Achievement comparing Target 90. 94% XL 2006 2007 Sep 2007 Sep 2008 00000 210000 210000 280000 180497 190724 136315 172527 90. 25% 90. 80% 64. 91% 61. 62% 32. 32% 5. 67% 0. 69% 27% 3. 16 Problems Identification Rupali Bank, Mirpur Br. is continuing with all the limitations, those a nationalized bank can bear. Shortage of employee is one of them. At the very beginning of my internee life, I have found that our branch is running without second officer. Because a few days ago he has transferred into another branch and no one is appointed in the blank post. So, a general banker named “Prosanto Babu” is performing the tasks of a second officer including his own duties. It is not the problem of only Mirpur Br. it is a common problem of this bank. Again, at the rush times Bankers do not serve every customers properly. At the month of November “Shadaron Bima Corporation” demanded a pay order of 250/- from the job seekers to their corporation in different ranks. Thus a rush was created that time in our branch and the bankers refuse the customers by saying them that – no pay orders can be created without a bank account in our branch. But the general banking law says that, “it is not necessary that the purchaser of the draft must be a customer or account – holder of the Bank. This types of miss-behaves unprovoked the customers to deal with this bank.

XLI Findings Sending money through Rupali Bank Ltd is an easy and inexpensive process. Less involvement of technology and lot of entries of a single transaction in various register books makes tasks time-consuming. Lack of integrity and shortage of employees are the main concerns in achieving the targeted profit from Remittance. This Bank plays a great role in sending money to various rural areas through its countrywide network. A strong position in international Banking and a great link with various foreign exchange companies makes the process of collecting the foreign remittance easier to this bank.

Recommendations Although a very strong and systematic training program creates the bankers efficient, the undisciplined environment makes them inactive. The Gap between Head office and branches will have to be removed in order to improve the situation. Reinforcement should be involved with the given target. Better marketing policy should be applied in order to attain and retain more customers in this competitive market. XLII Rupali Bank is still conducting remittance business because of price sensitive market, but without a proper customer relation it would be difficult to survive in the long run. Conclusion:

In modern Banking, Remittance of Funds is one of the most important ancillary service performed by every types of Banks. A nationalized commercial bank like Rupali Bank Ltd can perform it with better then other banks because of a wider network of branches and lower service charge. Again, a strong position in international Banking and a great link with various foreign exchange companies makes the process of collecting the foreign remittance easier to this bank. Besides these advantages, a lot of lacking like- shortage of manpower, Gap between officers of Head office & Branches, etc becomes a matter of concern.

Remittance- the subject of my study is a very small part of Rupali Banks activity, but it generates a portion of profit. So, by removing or at least reducing the bank should try to achieve the targeted amount fixed by the top management. XLIII References I. Annual Report, 2006, Rupali Bank II. Handout – Performance evaluation & Discussion meeting for Regional & Corporate Branches – 2008. III. Banking Laws & Practices – by P. N. Varshney. IV. www. rupali-bank. com. XLIV Appendix i? cvjx e? vsK wjwg‡UW ‡ wWU fvDPvi dwjI bs………………… cOwZ GKvD›U b¤^i: weeiY (RUPALI BANK LIMITED) ………………………… kvLv ZvwiL…………… 00 UvKv(A¶‡i) cO? ‘ZKvixi ? ^v¶i cOwZ? ^v¶i mwn(fvicOv? Awdmvi) Figure 1 XLV i? cvjx e? vsK wjwg‡UW Rupali Bank Limited. Mirpur Branch, Dhaka Fovez Mansion, Plot no. 6/A, Mirpur-1, Dhaka m~Ibst-wgcyXv/m‡ive/2006/ e? e? ’vcK i? cvjxe? vsKwjwg‡UW, m`i †ivW kvLv, ewikvj ZvwiLt22/06/2006 welqt- wWwWi wcO‡›UW bv¤^vi fyj cOms‡M| wcOq g‡nv`q, Avcbv‡`i kvLv n‡Z MZ 18/06/2006 Bs Zvwi‡L Bmy? K…Z wWwW bs-35/1735/20, G? vWfvDm bs-3314, Avgv‡`i n? —MZ n‡q‡Q| wWwW bs 35/18 I 35/19 Gi wcO‡›UW bv¤^vi wWwW G? vWfvB‡m GKB nIqvq Avgv‡`I c‡¶ G? vWfvBm †imcbU Kiv m¤? e n‡”Q bv| ms‡kvab c~e©K Avgv‡`i AewnZ Kivi Rb? Aby‡iva Rvbv‡bv hv‡”Q| XLVI Avcbvi wees— ? e? ’vcK Figure 2 i? cvjx e? vsK wjwg‡UW, wgicyi kvLv, XvKv DEi AAj, XvKv| welqt-30-12-2008 evwl©K wnmve mgvcbxi Z_? †cOiY cOms‡M| (j¶ UvKvq) wgKbs 01 02 03 04 05 weeiY †gvU AvgvbZ(mvmt my` mn) AvgvbZ(mvmt my` ev‡`) †gvU FY/AwMOg †gvU †k? YxK…Z F‡Yi cwigvY †gvU Av`v‡qi cwigvY (K) †k? YxK…Z FY n‡Z Av`vq (L) Ae‡jvebK…Z FY n‡Z Av`vq (M) A‡k? YxK…Z FY n‡Z Av`vq Avg`vbx e? emv i? vbx e? emv ? e‡`wkK †iwg‡UY e? emv †jvKvj †iwg‡UY e? emv †gvU Avq †gvU e? q bxU jvf/¶wZ ‡gvU 30,51 31,88 2,78 82 35 3 —32 —–850 13 290 168 122 06 07 08 09 10 11 12 mwVK ewjqv cOZ? vqb Kiv nj| XLVII wOZxq Kg©KZ©v/wnmve i¶K kvLv e? e? ’vcK Figure 3 XLVIII XLIX

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