National Bank

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REMITTANCES
The need of remittance is commonly felt in commercial life particularly and in every day life general. A major function of any banking system is the transfer of funds from one client or one place to another. By providing this service to the customer the bank earns a lot of income in the form of service charges. This department deals with local currency remittance i.e. remittance from one city to another without actually carrying the currency. MCB uses following instrument for transferring of money:

  • Demand Drafts (DD)
  • Pay Order (PO)
  • Telegraphic Transfer (TT)
  • Mail Transfer (MT)

Demand Drafts (DD)
DD is a written order given by the branch of the bank on behalf of the customer to other branch of the same bank to pay the certain amount to the customer. DD are issued for the particular place other than place of issuance. A drafts is a Cheque drawn by a bank on its own branch or any other branch of another bank at a different place requesting it to pay on demand a specified amount of money which is already received to the person named on it. DD is of following two types:

  • DD payable
  • DD Paid Suspense a/c

In the first type as advice reaches for payment the immediately pay to the customer while in later as DD presented by the customer, it is paid and the suspense account is debited.
 

Documentation
A printed application form is provided for filling in completely and signing by the applicant. After depositing an amount of draft and commission of the bank, duly completed and signed by two authorized officers, then it is handed over the applicant and credit order is dispatched to drawee branch. Following are the pre-requisites for the processing of DD:

  • Bank Serial No
  • No. of  DD
  • Central No
  • Test Key
  • Rs.60 Postage charges           
  • 0.02% With holding tax       

Pay Order
For this kind of remittance the payer must have the account in the issuing bank. Pay order are more liquid as compared to cheques because cheques may be dishonored while PO can’t be. It is written order issued by the bank drawn and payable on itself. It is used for local transfer of money from one person to another person. It is also used by the public for depositing money with Government or Semi Government department.

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