Internship Report on Janata Bank Foregin Exchange

7/18/2019 Internship Report on Janata Bank Foregin Exchange

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A PROPOSAL LETTER

On

Foreign Exchange Operations of Janata Bank Limited (JBL)

Subimtted To

Department of Management Studies

Jagannath University, Dhaka.

Submitted By

Mithun Kumer Saha

ID: M12020210

M!" #th !at$h

Ma%or in &uman 'esou$e Management



Supervised By

Prof. Md. Mosharraf Hossain Ph.D





01.01. Introduction

( h e t h e o r e t i $ a ) k n o * ) e d g e a n d p r a $ t i $ a ) t r a i n i n g i s n o t t h e s a m e t h e m e .

(he theoreti$a) kno*)edge is fu)fi))ed *hen it $an +e used in the pra$ti$a) fie)d.

(he goa) of internship is to app)y ones theoreti$a) kno*)edge in pra$ti$a) fie)ds. -enera))y +y the*ord !ank/ *e $an easi)y understand that the finan$ia) institution dea)s *ith money. !ut

there are different types of +anks su$h as entra) !anks, ommer$ia) !anks,

Savings !anks, Investment !anks, Industria) !anks, ooperative !anks et$. !ut *hen *e use

the term !ank/ *ithout any prefi3, or 4ua)ifi$ation, it refers to the 5ommer$ia)

+anks . ommer$ ia ) +anks are the pr imary $ontr i+u tors to the e$onomy of a $ount ry.

a kind of $ommer$ia) !ank in our $ountry. J ana ta !a nk a na t io na ) i 6ed $ommer $ ia ) +an k

esta+)ished under the !ang)adesh !anks 78ationa)i6ation9 rder 1;<2. =ith its head

offi$e at Dhaka the +ank started its operations *ithin initia) authori6ed $apita) of (k >0

mi))ion and paid up $apita) of (k 10 .> mi))ion. (he va)ue of assets $reated +y the !S

a$t ivit ies of the +ank *as (k 2?.0< +i) )ion in 1;;@ and (k 2>.#? +i))ion in

2000.J a n a ta ! a n k h a s a ) a r ge p a r t i$ i p a t io n i n f o r e ig n e 3 $ h a n ge + u s i ne s s

in$ )u din g ov ers ea s remittan$e servi$es. (he tota) vo)ume of foreign e3$hange

+us iness hand)ed +y the +an k in serv i$ ing imports and e3port s and remittan$es

during 1;;;2000 amounted to (k #0.12 +i))ion. In 200;, the +ank had $orrespondent

re)ationships *ith ,1@0 foreign +anksA+ank offi$es. In 1;<2, Janata !ank started its

+anking ope ra tions *ith a to ta ) in itia) depos it of (k 1.>< +i))ion. " spe$ia) deposit

mo+i)i6ation programmed introdu$ed +y the +ank in 1;<? resu)ted in remarka+)e in$reases in the

vo)ume of its deposits, *hi$h gre* at a rate of appro3imate)y ?B and #2B during 1;<2<# and

1;<@@0.Ma%or areas that re$eived finan$ing from the +ank *ere %ute trade, %ute

industries, tanneries, sugar industries, te3ti)e trade and industries, transport, iron and stee), tea

p)antation and trade, )ive)ihood tradesAin$ome generating a$tivities and housing. During 1;;;,

Janata !ank dis+ursed (k 1?.@ +i))ion in )oans and advan$es and the re$overy during the year

*as (k #.>#1 +i))ion.



01.02. +%e$tive of the 'eport

01.0.01. Ma!or "b!ectives

(he ma%or o+%e$tive of the study is to o+serve C eva)uate oreign E3$hange operations of Janata

!ank Fimited .

01.0.0. Specific "b!ectives

Every report has an o+%e$tive. (he o+%e$tive of the internship program is to fami)iari6e students

*ith the rea) +usiness situation, to $ompare them *ith the +usiness theories C at the )ast stage

make a report on assigned task. Spe$ifi$ o+%e$tives are as fo))o*:

(o kno* the a$tivities of the foreign e3$hange department. (o kno* fun$tion of foreign e3$hange.

(o kno* e3port pro$edures of J!F.

(o kno* import pro$edures of J!F.

01.0#. "ri$in of the report

(his report is +eing assigned as a part of the M!" Degree 7Internship9 of Jagannath University.

(o prepare this report, I a$$ommodate my internship program in Janata !ank Ftd. or the

$omp)etion of the $ourse, as an essentia) part I had prepared a 'eport. (his reportis +eing formed on the " Study on oreign E3$hange operations of the Janata !ank Ftd.,

G a) ig on % ! ra n$ h /. ro m t he v e ry + eg in ni ng o f m y i nt er ns hi p I h av e

*ork ed o n -en era ) +anking. "fter fe* *eeks )ater I *as shifted on oreign E3$hange

department. or that reason I made my 'eport on oreign E3$hange a$tivities of ., Ga ) i gon % !r an$h .

Janata !ank Fimited 7J!F9 is a p)a$e *here I $ou)d )earn the +usiness dea)ings. (his

organi6ation has $reated a positive image to the $ustomers mind +y providing +etter servi$e.

(his +ank has introdu$ed some modern +anking s$heme that has got high market demand. "s an

intern, I have got the opportunity to *ork *ith this organi6ation from January 1, 201> to Mar$h

1, 201> and a$4uire idea a+out foreign division.



01.0%. Bac&$round of study

")) over the *or)d the dimension of !anking has +een $hanging rapid)y due to Deregu)ation,

(e$hno)ogi$a) innovation and -)o+a)i6ation. !anking in !ang)adesh has to keep pa$e *ith the

g)o+a) $hange. 8o* !anks must $ompete in the market p)a$e +oth *ith )o$a) institution as *e))

as foreign ones. (o survive thrive in su$h a $ompetitive +anking *or)d, t*o important

re4uirements are H

i9 Deve)opment of appropriate finan$ia) infrastru$ture +y the entra) +ank andii9 Deve)opment of rofessiona)ism/ in the sense of deve)oping an appropriate

manpo*er stru$ture and its e3pertise and e3perien$e.

(o introdu$e ski))ed !anker, on)y theoreti$a) kno*)edge in the fie)d of +anking studies is not

suffi$ient. "n a$ademi$ $ourse of the study has a great va)ue *hen it has pra$ti$a) app)i$ation in

rea) )ife situation. So, I needed proper app)i$ation to get some +enefit from my theoreti$a)

kno*)edge to make it more ta$tfu), *hen I engaged myse)f in my pra$ti$a) )ife situation. Su$h a))

app)i$ation is made possi+)e through Internship.

01.0%. Scope

S$ope means area of operations or fie)d of the study. (he s$ope of this report *as e3tended to the

oreign E3$hange a$tivities of J!F.

01.0'. Methodo(o$y of the )eport

(he study re4uires a systemati$ pro$edure from se)e$tion of the topi$ to fina) report preparation.

(o perform the study the data sour$es are to +e identified and $o))e$ted, they are to +e $)assified,

ana)y6ed, interpreted and presented in a systemati$ manner and key points are to +e found out.

(he overa)) pro$ess of methodo)ogy is given +e)o*:

*. Se(ection of the topic:

(he topi$ of the study *as suggested +y our supervisor. !efore assigning the topi$ it *as

dis$ussed *ith me so that a *e)) organi6ed internship report $an +e prepared.



B. Identifyin$ data sources:

Essentia) data sour$es +oth primary and se$ondary are identified *hi$h *i)) +e needed to

$omp)ete and *ork out the study. (o meet up the need of data primary data are used and

study a)so re4uires intervie*ing the offi$ia) and staffs *ere ne$essary. (he report a)so

re4uired se$ondary data.

(his report is main)y prepared +y the se$ondary sour$es of information and some fe* primary

sour$es of information )ike H

Primary Sources+

ra$ti$a) desk *ork

Emp)oyees of the J!F

)ients of the J!F

E3amine and study $)ient fi)es

E3perts opinions and $omments

Dire$t invo)vement in the foreign e3$hange a$tivities in J!F

Dire$t +servation

uestioning the $on$erned persons

Secondary Sources+

Most of the ne$essary information *i)) +e $o))e$ted from the $)ients do$ument.

J!F "nnua) 'eport 200;201#

u+)ished do$uments

=e+site of J!F

'e)evant +ooks.

Karious +ro$hures

Dai)y summary sheet

Karious type of statement

*. ,o((ection of data+



rimary data are $o))e$ted +y using uestionnaire. (he report is +ased on open ended

4uestions asked to the !ank offi$ia).

B. ,(assification- *na(ysis- Interpretations and Presentation of data+

Some graphi$a) too)s are used in this report for ana)y6ing the $o))e$ted data and to

$)assify those to interpret them $)ear)y.

,. indin$s of the study+

(he $o))e$ted data *ere s$rutini6ed very *e)) and pointed out and sho*n as findings.

'e$ommendations are a)so made for the improvement of the $urrent situation.

D. ina( report preparation+

n the +asis of the suggestions of my honora+)e supervisor, some $orre$tions *ere made

to present the report in this form.

01.0/. imitations of the Study

(he report is *ritten main)y on the +asis of fa$e to fa$e $onversation *ith the offi$ia)s and )itt)e

pra$ti$a) e3perien$e in the +ank. So, no perfe$t study is $ondu$ted to measure the via+i)ity of the

report. (he fo))o*ing are some other )imitations H

Fimitation of time *as one of the most important fa$tors that shortened the present

study. Due to time $onstraints, many aspe$ts $ou)d not +y dis$uss in the present study.

Fa$k of $omprehension of the respondents *as the ma%or pro+)em that $reated many

$onfusions regarding verifi$ation of $on$eptua) 4uestions.

onfidentia)ity of data *as another important +arrier that *as fa$ed during the $ondu$t of

this study. Every organi6ation has their o*n se$re$y that $annot +e revea)ed in pu+)i$s.

'ush hours and +usiness *as another reason that a$ts as an o+sta$)e *hi)e gathering

data.

"s, I had more dependen$e on the primary sour$es, so there might +e some )eve) of

ina$$ura$y *ith those $o))e$ted information.

Insuffi$ient +ooks, pu+)i$ations, a$ts and figures narro*ed the s$ope of a$$urate

ana)ysis.

J!F does not have ri$h and *ea)thy $o))e$tion of various types of !anking re)ated !ooks

and Journa)s.



onfidentia) information regarding past profit or produ$t $ost, finan$ia) information *as

not a$$urate)y o+tained. ")ike a)) other +anking institutions, J!F is a)so very $onservative

and stri$t in providing those information. In those $ases, I have re)ied upon some

assumptions, *hi$h in resu)t have $reated $ertain )eve) of ina$$ura$y. Sti)), I had tried my

+est in o+taining that sensitive information, as mu$h as possi+)e.

01.0'.0 Data ,o((ection Method+

M os t o f t he d at a r e4 ui re d f or t he s tu d y * as $ o) )e $t ed f or m p ri ma r y

so ur$ es th ro ugh o ra ) intervie*ing the emp)oyees.

01.0'.02 Data *na(ysis Process+

(o ana)y6e the gathered data of foreign e3$hange department, I used different types of $harts,

t a + ) es a n d g r a p h s . ( o d o t h a t a n a ) y s is I u s e d d i f fe r e n t t y p e s o f $ o m p u te r

so f t*ar e ) i ke Mi$rosoft =ord and Mi$rosoft E3$e).

Findings of the study:

"fter finding out the data pro+)ems of the study *ere pointed out and they *ere sho*n

under $on$erned heads. 'e$ommendations *ere suggested thereafter to

over$ome the pro+)ems.

Final report preparation:

n the +asis of the suggestions of my honora+)e supervisor some dedu$tions andadditions *ere made and fina) report *as prepared thereafter.

Significance of the Report:

(his repor t i s the resu) t of three month internship in J!F. "nd I have

$omp)eted this internship period su$$essfu))y. (his internship report $ontains a)) the

kno*)edge that I have gathered at the time of my internee at J!F in the -adara !ran$h.

My topi$ is study on oreign E3$hange operations of J!F. (his is the +asi$ rationa)e

+ehind the study. !esides, it *ou)d +e a great opportunity for me to get fami)iar *ith this

system. So this study is very signifi$ant for +oth the $ompany and as *e)) as for me.

01.0/. imitations of the )eport

(here *ere some pro+)ems *hi)e I doing internship. " *ho)e hearted effort *as app)ied to $ondu$t the

internship and to +ring a re)ia+)e and fruitfu) resu)t. In spite of having the *ho)ehearted effort,



there e3it some )imitations, *hi$h a$ted as a +arrier to $ondu$t the program. (he )imitations *ere

noted to this page:

!ankers dont *ant to dis$)ose a)) the information I need.

8onavai)a+i)ity of some pre$eding and )atest data.

Some information *as *ithhe)d to retain the $onfidentia)ity of the +ank. ")though the offi$ers of the have +een very he)pfu), they didnt have enough

time to provide, as they are very +usy *ith their assigned *orks.

So, in some $ases, o+servation *as needed.

CHAPTER-2



Organization Part

0.01. *n overvie3 of 45B6

is the )eading se$tor +ank in !ang)adesh offering fu)) range of ersona), orporate, Internationa)(rade, oreign E3$hange and Fease inan$e. is the preferred $hoi$e in +anking for friend)y and

persona)i6ed servi$es, $utting edge te$hno)ogy, ta i)ored so )u tions fo r +us iness needs,

g)o+a) rea$h in trade and $ommer$e and high yie )d on investments, assuring E3$e))en$e in

!anking Servi$es.

0.0. Brief "vervie3 of the Ban&

ormation of Janata !ank:

Immediate)y after the independen$e of !ang)adesh in1;<1, the erst*hi)e United !ank

Fimited and Union !ank Fimited *ere nationa)i6ed and renamed as Janata !ank.

♦ Date of In$orporation as F: May 21, 200<.

♦ "uthori6ed apita):

♦ (k. @,000 mi)) ion 7as on 1.12.0@9 7no* 20,000 Mi))ion as

approved in the "-MAE-M dated 2;.0;.0;9.

♦ re I aid up apita):

♦ (k. 2,>;.;0 mi))ion 7as on 1.12.0@9 7ho*ever the +ank has issued !onus

shares amounting to (k. 11>?.10 mi))ion and rights shares of (k.

12>0.00in the said "-MAE-M i.e., paid up *ou)d +e (k. >,000 mi))ion9.♦ 8o. of !ran$hes:

♦ ")most @>0

0.0#. *t a 7(ance

Gey points arti$u)ars

8ame J!F

Fogo %anata +ank )td

Date of in$orporation as F May 21,200<



Status u+)i$ $ompany )td

hairman D'. "+u) !arkat

Managing Dire$tor S.M. "minur 'ahman

Managing Dire$tor C E

0.0%. Hierarchy of

Hierarchy of

.0'. "b!ective of or$ani8ation

J"8"(" !ank Ftd *i)) +e the a+so)ute market )eader in the num+er of )oans given to sma)) and

medium si6ed enterprises throughout !ang)adesh. It *i)) +e a *or)d H $)ass organi6ation in terms

of servi$e 4ua)ity and esta+)ishing re)ationships that he)p its $ustomers to deve)op and gro*

su$$essfu))y.

0.0/. Mission of 45B6



*i)) +e an effe$tive $ommer$ia) +ank +y maintaining a sta+)e gro*th strategy

de)ivering high 4ua)ity finan$ia) produ$ts, providing e3$e))ent $ustomer servi$e

through an e3perien$ed management team and ensuring good $orporate governan$e in every step

of +anking net*ork.

0.0. 9ision of 45B6

(o +e$ome the effe$tive )argest $ommer$ia) +ank in !ang)adesh to support so$io

e$onomi$ deve)opment of the $ountry and to +e a )eading +ank in South "sia.

0.02. ,ore 9a(ues of 45B6

Integrity

airness

&armony

ourtesy

ommitment Enthusiasm for *ork

!usiness ethi$s

0.0:. ,ore Stren$ths of 45B6

ui$k De$ision Making

Effi$ient team performan$e

Satisfied ustomer

Interna) ontro)

0.10. orei$n ,orrespondin$

Janata !ank has a)ready esta+)ished a *or)d*ide net*ork and re)ationship *ith

internationa) +anking through its four 7#9 overseas +ran$hes in U"E, su+sidiaries Janata

E3$hange S.'.) in Ita)y C 112> foreign $orrespondents a)) over the *or)d.

0.11Business Phi(osophy

.Janata !ank Ftd, a fu)) servi$e $ommer$ia) +ank *ith Fo$a) and Internationa)

Insti tutiona) shareho)ding, is primari)y driven +y $reating opportunit ies and

pursuing market ni$hes no t traditiona))y met +y $onventiona) +anks. (oday Janata !ank Ftd

is one of the fastest gro*ing +anks in the $ountry to support the p)anned gro*th of its

distri+ution, net*ork and for its various +usiness segments. (he reason Janata !ank Ftd is

in +usiness is to +ui)d a prof ita+)e and so$ia ))y responsi+ )e finan$ia) institution fo$used

on markets and +usinesses *ith gro*th potentia), there+y assistingJanata and stakeho)ders



+ui )d a %ust , en )igh tened , hea )thy, demo$ra ti $ and poverty fr ee !ang)adesh/. =hi$h

mean to he)p make $ommunities and e$onomy of the $ountry stronger and to he)p peop)e a$hieve

their dreams. (hey fu)fi)) the purpose +y rea$hing for high standards in e v e r y t h i n g * e d o .

o r t h e i r $ u s t o m e r s , t h e i r s h a r e h o ) d e r s , t h e i r a s s o $ i a t e s a n d

t h e i r $ommunities upon, *hi$h the future prosperity of their $ompany rests.

0.1. Mana$ement of 45B6 +

o r a n y f i n an $ i a ) a n d n o n f i n a n $ i a ) o r g a n i6 a t io n M a n a g e me n t i s t h e m o s t

va )u a+ )e and important resour$es of any kind of organi6ation. "nd a *e))organi6e

management provides the organi6ation to rea$h its u)timate goa). Management means

p)ann ing, organ i6 ing, sta ff ing, d i r e$ t ing and $on t r o ) ) ing o f a ) ) f in an$ ia ) and

non f inan $ ia ) r e sou r$es o f an o rgan i6a t i on . Different aspe$ts of management pra$ti$e in

are dis$ussed +e)o*.

L )anning

has done its p)anning *ithin the previe* of the $orporate p)an. (he

o v e ra ) ) p ) an n in g a p p ro a $h o f i s (o p d o* n . E a $h + r an $ h $ a n

p )an a$$ording to the goa) imposed +y the $orpora te )eve) . It doesnt

p)an independen t)y. "nd, has a p)an ning di vi sion . (his depar tmen t is

main)y responsi+)e for the overa)) p)anning.

L rgani6ing

Is organi6ed as per the e3isting +usiness )o$ations. It has @>1 +ran$hes, ea$h o f

*h i $h i s a s epa r a t e en t i t y. Ea$h un i t i s r e s pons i + ) e f o r i t s o*n

p e r fo rman$e and fo))o*ed +y Managers ea$h. &e is dire$t)y responsi+)e for

performan$e of their unit. =ithin ea$h +ran$h it is organi6ed fun$tiona))y.

L Staffing

(he re$ruitment of is done in t*o *ays. ne as a pro+ationary offi$er for the

management program and it has pro+ation period of one year. "nother

one is nonmanagement )eve) as (rainee ffi$er/ ro+ationary offi$er is

re$ruited in offi$er $ategory and their $areer path is headed to*ards different

manageria) %o+s.

L Dire$ting and $ontro))ing



(he management approa$h in is topdo*n or authoritative. Information %ust seeks

through )o*er management )ayer. Setting Management in a)) offi$e is done in *ay

that the superior $an monitor the su+ordinate $an a)) time. !udgeting, re*arding,

punishing et$. are a)so pra$ti$ed as $ontro) me$hanism.

0.1#. Product and services

J!F has a very +road )ine produ$ts under the various +usiness group, from short term to )ong

term deposits, various types )oans and advan$es, a$$ount servi$e, it provides finan$e for e3port

and import, finan$e for *orking $apita), pro%e$t finan$ing, $apita) investment,

remittan$e servi$e, t rade servi$e, foreign e3$hange servi$e, $ash management

servi$e, rofit C )oss sharing and a)so has other mis$e))aneous produ$t and servi$es around

the nation.

0.1%. Product of Trade service

#.#.1 und Based+

ash redit 7 &ypo9

ash redit 7 )edge9

verdraft 7D9

(rust 'e$eipt 7('9

oreign !i)) ur$hase 7!9

Foan against Important Mer$handise 7FIM9

#.#. ;on<und Based+



Fetter of redit 7F9

Deferred F

Sight F

Fetter of -uarantee 7F-9" )imit 7amount9 is set +y the +ank that $an +e

avai)ed +y a parti$u)ar ustomer +ased on his Aher redit *orthiness and

re$ord of +usiness transa$tions *ith the +ank.

0.1'. Business area of 45B6

(here are main)y eight ma%or +usiness areas *here the Janata !ank Ftd. is performing *ith high

reputation. (hese areas are

-enera) !anking

oreign E3$hange

Sma)) C Medium S$a)e Enterprise 7SME9

Farge S$a)e Industries

"gri$u)ture Se$tor

(ransport Se$tor

inan$ing In &ousing Se$torC Fand Deve)oping

inan$e in &ome "pp)ian$e Sin$e I $omp)eted my internship on foreign

e3$hange, it *ou)d +e $onvenient for me to fo$us oreign E3$hange of

Janata !ank Ftd.

0.1'.01 7enera( Ban&in$

I t i s m o s t i m p o r t a n t s i d e o f t h e + a n k . ! a n k i s n o t h i n g + u t a m i d d ) e m a n +e t*ee n ) ende r s 7surp) us unit 9 and +orro*ers 7def i$ it uni t9 . (o prov ide )oan , a

+ank needs a huge amoun t of money from the depositors. -enera) +anking is the side *here

+anks offer different a)ternatives to the $)ients to deposit and remit their money. (o en$ourage the

$)ients, +ank offers different options in front of their $)ients. Most of these options are very mu$h

simi)ar +et*een the +anks, +ut the $ustomer servi$es and fa$i)ities may not +e the same. -enera)

!anking of J!F is divided into # divisions:

L"$$ount opening

L 'emittan$e

L )earing

L ash.

.1'.1.1 *ccount "penin$



(he re)ationship +et*een the +anker and the $ustomer +egins *ith the opening of an a$$ount +y

the $ustomer. Initia))y a)) the a$$ounts are opened *ith a deposit money +y the $ustomer and

hen$e these a$$ounts are $a))ed deposit a$$ount. Usua))y a person needs to open an a$$ount to

take servi$es form it. =ithout opening an a$$ount, one $an get on)y a fe* servi$es

from then. So the +anking +egins a$tua))y +y opening an a$$ount *ith a +ank. -enera))y, there

are four types of a$$ounts in our $ountrys +anking system:

1. urrent a$$ount or Demand Deposit 7 D "$$ount92. Savings Deposit 7S ! "$$ount9. i3ed or (ime Deposit 7 D '9#. J ! D S 7Janata !ank Deposit S$heme9>. M D S 7Medi$a) Deposit S$heme9?. E D S 7Edu$ation Deposit S$heme9

.1'.1. )emittance

'emittan$e of funds is an$i))ary servi$es of J!F. It aids to remit fund from one p)a$e to

another p)a$e on +eha)f of its $ustomers as *e)) as non $ustomers of !ank. J!F has its +ran$hes

in the ma%or $ities of the $ountry and therefore, it serves as one of the +est mediums for

remittan$e of funds from one p)a$e to another. (he main instruments used +y J!F:

i. ayment rder IssueAo))e$tionii. Demand Draft Issue A o))e$tioniii. (.(. IssueAo))e$tion

i. Payment Order:

(he pay order is an instrument issued +y +ank, instru$ting itse)f a $ertain amount of

money mentioned in the instrument taking amount of money and $ommission *hen it is

presented in +ank. n)y the +ran$h of the +ank that has issued it *i)) make the payment of pay

order. Issuing of ay rder: (he pro$edures for issuing a ay rder are as fo))o*s:

o Deposit money +y the $ustomer a)ong *ith app)i$ation form.

o -ive ne$essary entry in the +i))s paya+)e 7ay rder9 register *here payees name, date,

no, et$ is mentioned.o repared the instrument.

o "fter s$rutini6ing and approva) of the instrument +y the authority, it is

de)ivered to.



ii. Demand Draft:

(he person intending to remit the money through a Demand Draft 7DD9 has to deposit

t h e m o n e y t o + e r e m i t t e d * i t h t h e $ o m m i s s i o n * h i $ h t h e + a n k e r

$ha rges fo r i t s servi$es. (he amount of $ommission depends on the amount to +e

remitted. n issue of the DD, the remitter does not remain a party to the instrument:

• Dra*er +ran$h

• Dra*n +ran$h

• ayee. ustomer. Signature of $ustomer is taken on the $ounterpart.

iii. Telegraphic or Telephonic Transfer (TT)

(his Method transfers money to one p)a$e to another p)a$e +y te)egraphi$ message. (he

sender +ran$h *i)) re4uest another +ran$h to pay re4uired money to the re4uired payee on

demand. -enera))y for su$h kind of transfer payee shou)d have a$$ount *ith the paying +ank.

ther*ise it is very diffi$u)t for the paying +ank to re$ogni6e the e3a$t payee. =hen sending

money is urgent then the +ank uses te)ephone for remittan$e. (his servi$e is on)y

provided for va)ued $ustomers , *ho is ve ry re )ia+ )e and *ith *h i$h +anks have

)ong standing re)ationship.

TT 4Issue6

♦ ustomer fi))s up the (( form and pays the amount a)ong *ith

$ommission in $ash or +y $he4ue.

♦ (he respe$ted offi$er issues a $ost memo after re$eiving the (( form *ith

payment sea), then signs it and at )ast give it to the $ustomer.

♦ 8e3t a (( $onfirmation s)ip is issued and its entry is given in the (( issue

register.

♦ " test num+er is a)so put on the fa$e of the s)ip. (*o authori6ed offi$er

signs this s)ip.

♦ (he respe$tive offi$er transfers the message to the dra*er +ran$h

mentioning the amount, name of the payee, name of the issuing +ran$h,

date, test num+er and hasher po*er of attorney 7.".9 num+er.

♦ (he $onfirmation s)ip is send +y post.



.1'.1.# ,(earin$

) e a r i n g h o u s e i s a n a s s e m + ) y o f t h e ) o $ a ) ) y o p e r a t i n g s $ h e d u ) e d + a n k s

fo r e3$ hange o f $he4ues, drafts, pay orders and other demand instruments dra*n on ea$h

other and re$eived from their respe$tive $ustomers for $o))e$tion. (he house meets at the

appointed hour on a)) *orking days under the supervision of t*o $entra) +ank offi$ers or its

agent as the $ase may +e, and *orks *ithin the regu)ations framed therefore on the +asis of

prevai)ing +anking pra$ti$es. In !ang )ad esh , $ ) ea r i ng hou se s i t e s a t !ang ) ades h

+ank *here t he re i s no of f i $e o f the !ang)adesh +ank, Sona)i !ank a$ts as agent of

!ang)adesh +ank. (here are main)y t*o types of $)earing systems in !ang)adesh, su$h as:

Interna) $)earing or inter +ran$h $)earing or in*ard $)earing

E3terna) $)earing or inter +anks $)earing or out*ard $)earing

=hat is c(earin$ House>

In !ang)adesh !ank, there is a very )arge room, *hi$h $ontains fifty 7>09 or more

ta+)es for ea$h +ank that is $a))ed the $)earing house.

8ature of $)earing house:

1st )earing &ouse

'eturn )earing &ouse

Types of Clearing Cheue

J!F -adara !ran$h, Dhaka performs the $)earing fun$tion through !ang)adesh !ank. J!FFo$a )

f f i $e , Dhaka a$ t s a s t he agen t o f a ) ) J !F + r an$hes f o r t he $ ) ea r i ng hous e

of t he !ang)adesh !ank. (here are t*o types of $he4ue *hi$h are

L In*ard $)earing he4ue.

L ut*ard $)earing he4ue.

In3ard c(earin$ ,he?ues

In*ard $)earing $he4ues are those ones *hi$h have dra*n on the other +ran$hes of J!F, *hi$h

*i)) +e $)eared A honored through the interna) $)earing system of J!F operated +y

the Fo$a) ffi$e of J!F.



"ut3ard c(earin$ ,he?ues

ut*ard $)earing $he4ues are those ones, *hi$h have dra*n on the other +ank +ran$hes *hi$h

are presented on the $on$erned +ran$h for $o))e$tion through $)earing house of

!ang)adesh !ank. (he $ash se$tion of any +ran$h p)ays very signifi$ant ro)e in !anking

Se$tion. !e$ause, it dea)s *ith most )i4uid assets. (he J!F, -andaria !ran$h has an e4uipped

$ash se$tion. (his se$tion re$eives $ash from depositors and pay $ash against $he4ue, draft, ,

and pay in s)ip over the $ounter. Every !ank must have a $ash $ounter *here $ustomer

*ithdra*n and deposit their money. =hen the va)ued $)ients deposit their money at the $ash

$ounter they must have to fu)fi)) the deposit s)ip hisAher o*n, then they sing as the depositor

options then they deposit their money through $ash offi$er at the $ash $ounter.

Severa( Types of Deposit S(ip

(here are severa) types of deposit s)ip as fo))o*s:

urrent Deposit "A S)ip,

Savings Deposit "A S)ip,

i3ed or (ime Deposit "A S)ip, ther (ypes of Deposit "A S)ip,

ay order S)ip,

Demand Draft S)ip,

(.(. S)ip.

Recei!ing Cash

"ny peop)e *ho *ant to have deposit money *i)) fi)) up the deposit s)ip and give

the form a)ong *ith the money to the $ash offi$er over the $ounter. (he $ash offi$er $ounts the

$ash and $ompares *ith the figure *ritten in the deposit s)ip. (hen he put his signature on the

s)ip a)ong *ith the 5$ash re$eived sea) and re$ords in the $ash re$eive register +ook against "A



num+er. "t the end of the pro$edure, the $ash offi$er passes the deposit s)ip to the $ounter se$tion

for posting purpose and de)ivers dup)i$ate s)ip to the $)ients.

Dis"ursing Cash

(he $)ient *ho *ants to re$eive money against $he4ue $omes to the payment

$ounter and presents his $he4ue to the offi$er. &e verifies the fo))o*ing information:

o Date of the $he4ue

o Signature of the "A ho)der

o Materia) a)teration

o =hether the $he4ue is $rossed or not

o =hether the $he4ue is endorsed or not

o =hether the amount in figure and in *ord $orrespondent or not (hen h e $he$ ks the

$ h e 4 u e f r o m $ o m p u t e r f o r f u r t h e r v e r i f i $ a t i o n . & e r e t h e f o ) ) o * i n g

information is $he$ked:

=hether there is suffi$ient +a)an$e or not

=hether there is stop payment instru$tion or not

=hether there is any )ega) o+stru$tion or not "fter $he$king everything, if

a)) are in order the $ash offi$er gives amount to the ho)der and re$ords in

the paid register.

.1'.1.% ;e3 Techno(o$y

"dopting the stateofthe art te$hno)ogy in +anking operations.



.1'.1.' Mana$ement Hierarchy

,hairman

Board of Director



Mana$in$ Director

*dditiona( Mana$in$ Director

Deputy Mana$in$ Director

Senior @Aecutive 9ice President

@Aecutive 9ice President

Senior 9ice President

9ice President

irst 9ice President

*ssistance 9ice President

irst *ssistance 9ice President

Principa( "fficer

Senior @Aecutive "fficer

@Aecutive "fficer



.1'.1./ eatures of 5anata Ban& imites.

(here are so many reasons +ehind the +etter performan$e of J!F than any other ne*)y esta+)ished

+anks:

&igh)y 4ua)ified and effi$ient professiona)s manage the +ank

J!F has esta+)ished a $ore 'esear$h C )anning Division *ith effi$ient persons

(he +ank has esta+)ished $orrespondent re)ationship *ith 2#0 of foreign +anks

(he $omputeri6ed operation systems in a)) +ran$hes of J!F have provided the fre4uent and

prompt $ustomer servi$e (he stri$t )eadership a)ong *ith the supervision of effi$ient management dire$ts a)) the

+ran$hes (he inner environment and team*ork, of a)) +ran$hes in M!F motivated a)) e3perien$ed

emp)oyees to a$hieve the u)timate o+%e$t of J!F J!F has +e$ome a mem+er of the S=I( system e3pedite foreign trade transa$tion

J!F has +e$ome introdu$ed some s$heme for the purpose of saving of )o* in$ome peop)e

*hi$h are not avai)a+)e in other +anks )ike ami)y Maintenan$e Deposit 7MD9/,

ersona) Foan S$heme/, ar Foan S$heme/ et$. (he +ank offers attra$tive saving rate than other finan$ia) institutes

J!F provides )oan to the $ustomers at )o*er interest *ith easy and f)e3i+)e $ondition than

the others do ")ong *ith the profit generation Janata !ank Fimited a)so maintain so$ia) responsi+i)ities

Janata !ank Fimited $harges )o*er $ommission from their $ustomer in $omparison *ith

other +anks (he !ank is a)*ays guided their potentia) $ustomers +y giving va)ua+)e advises

.1'.1. MB Bro&era$e House

"fficer

*ssistance "fficer

Trainee *ssistance "fficer



Mer$anti)e !ank Fimited !rokerage &ouse has +een deve)oped to ensure deve)opment of sound

$apita) market and to provide higher, +etter and diversified servi$es to a *ide range of $ustomers.

M!F is offering high 4ua)ity produ$ts and servi$es at a $ompetitive rate.

Mer$anti)e !ank Fimited !rokerage &ouse offers fu))f)edged internationa) standard +rokerage

servi$e *ith margin )oan fa$i)ity. (hey are a)so a fu)) servi$e Depository arti$ipant 7D9 of

entra) Depository !ang)adesh Ftd. 7D!F9. (he +rokerage servi$e is designed to provide

$ustomers *ith ne$essary support profita+)y in the sto$k market.

M!F is dedi$ated to provide high )eve) of professiona) and persona)i6ed servi$es to its domesti$

and internationa) $)ients at a reasona+)e $ost. M!Fs servi$es are $omprehensive in nature,

in$)uding +rokerage, margin )oan, D!F fa$i)ities, and resear$h and $ustodian needs of

$ustomers.

CHAPTER-3

Foreign exchange operation

0#.01. orei$n @Achan$e

orei$n @Achan$e< its Meanin$ and Definition

oreign E3$hange is a pro$ess *hi$h is $onverted one nationa) $urren$y into

anothe r and transferred money from one $ountry to another $ountry. oreign e3$hange refers to

the pro$essor me$hanism +y *hi$h the $urren$y of one $ountry is $onverted into the $urren$y of

another $ountry. oreign e3$hange is the means and methods +y *hi$h rights to *ea)th in a



$ountrys $urren$y are $onverted into rights to *ea)th in another $ountrys $urren$y. In +anks

*hen *e ta)k of foreign e3$hange, *e refer to the genera) me$hanism +y *hi$h a +ank $onverts

$urren$y of one $ountry into that of another. oreign trade gives rise to foreign e3$hange.

Modern +anks fa$i)itate trade and $ommer$e +y rendering va)ua+)e servi$es to the

+us iness $ommunity. "$$ording to foreign e3$hange regu)ation a$t 1;#<, "ny thing that

$onveys the right to *ea)th in another $ountry is foreign e3$hange/. oreign e3$hange

department p)ays signifi$ant ro)es through providing different servi$es for the $ustomers.

pening or issuing )etters of $redit is one or the important servi$es provided +y the +anks.

Every $ountry has $ertain natura) advantages and disadvantages in produ$ing $ertain

$ommodities *hi)e they have some natura) disadvantages as *e)) in other areas. "s a resu)t *e

find that some $ountries need to import $ertain $ommodities *hi)e others need to e3port their

surp)uses. oreign trade +rings the fruits of the earth to the homes of the hum+)est among the

$ountries. (hese transa$tions are the +asis upon *hi$h internationa) trade is made. "s more than

one $urren$y is invo)ved in foreign trade, it gives rise to e3$hange of $urren$ies *hi$h is kno*n

as oreign E3$hange.

(his definition imp)ies that a)) +usiness a$tivities re)ating to Import, E3port, ut*ard C In*ard

'emittan$es, +uying C se))ing of foreign $ommissions, et$. $ome under the purvie* of foreign

e3$hange +usiness.

oreign e3$hange $an simp)y +e defined as a pro$ess of $onversion of one nationa) $urren$y into

another and of transferring money from one $ountry into another.



0#.01.. Princip(es of orei$n @Achan$e

(he fo))o*ing prin$ip)es are invo)ved in oreign e3$hange:

L (he entire system.

L (he media used.

L (he monetary unit.

0#.01.#. unctions of orei$n @Achan$e "perations

(he !ank a$tions as a media for the system of foreign e3$hange po)i$y. or this

reason, the emp)oyee *ho is re)ated of the +ank to foreign e3$hange, espe$ia))y foreign

+usiness shou)d have kno*)edge of these fo))o*ing fun$tions:

'ate of e3$hange.

&o* the rate of e3$hange *orks.

or*ard and spot rate.

Methods of 4uoting e3$hange rate.

remium and dis$ount.

'isk of e3$hange rate.

auses of e3$hange rate. E3$hange $ontro)

onverti+i)ity.

inan$ing of foreign trade.

oreign e3$hange transa$tion.

oreign e3$hange trading.

E3port and import )etter of $redit.



8on$ommer$ia) )etter of trade.

8ature and fun$tion of foreign e3$hange market.

'u)es and 'egu)ation used in foreign trade.

E3$hange "rithmeti$.

0#.0. Different Types of forei$n eAchan$e operations+

(here are three kind of foreign e3$hange transa$tion:

Import

E3port

oreign 'emittan$e. (he fo))o*ing $hart is sho*ing different types of a$tivities

of foreign e3$hange operation:

,hart 1%+ Different =in$s of orei$n @Achan$e "peration

0.0 Import:

Import trade in !ang)adesh is $ontro))ed under the Import and E3port $ontro) "$t 1;>0.

"uthori6ed Dea)er !anks *i)) import the goods into !ang)adesh fo))o*ing the import

po)i$y, pu+)i$ noti$e, .E. $ir$u)ar and other instru$tions from $ompetent authorities from time totime. (he *ho)e import fun$tions of the +ran$h as far I have understood are dis$ussed +e)o*:

0#.0#.1. Procedure of import

Import of mer$handise essentia))y invo)ves t*o things:



!ringing of goods physi$a))y into the $ountry

'emittan$e of foreign e3$hange to*ards the $ost of the mer$handise (he Ministry of

ommer$e through the hief ontro))er of Import regu)ates physi$a) import and

E3ports +eing offi$e at the important trade $enter *hi)e !ang)adesh !ank

regu)ates the payment for the imports through its various departments. (he fo))o*ing

are the steps invo)ved in import of mer$handise into !ang)adesh.

)e$istration of importer

In terms of the Importers, E3porters and Indenters 7'egistration9 rder 1;@1, no person $an

import goods into !ang)adesh un)ess he is registered *ith the hief ontro))er of Import and

E3por t or e3empted f rom the provisions of the said order. So the fo) )o*ing

do$uments are re4uired to +e su+mitted to the )i$ensing authority for registration as importers:

uestionnaire form du)y fi))ed in and signed In$ome ta3 registration $ertifi$ate

(rade Fi$ense from the Muni$ipa) or Fo$a) "uthority

!ank $ertifi$ate

8ationa)ity $ertifi$ate

artnership Deed *here app)i$a+)e

ertifi$ate of 'egistration *ith the 'egistrar of Joint Sto$k ompanies,

ertifi$ate from the ham+er of ommer$eA'egistered (rade "sso$iation

*nership do$uments or rent re$eipts of the p)a$e of +usiness

redit "uthori6ation orm9. !)ank F" forms $an +e o+tained

+y the importer from thei r +anker. (he fo))o*ing do$uments are

re4uired to +e su+mitted +y the import to his +anker. F" orm property fi))edin and signed.

F "pp)i$ation

ur$hase ontra$t in the shape of an Indent or ro forma Invoi$e.

Insuran$e over 8ote

Mem+ership ertifi$ate from a $ham+er of ommer$e and Industry or 'egistered

(rade "sso$iation Import 'egistration ertifi$ate 7I'9.

In $ase of u+)i$ Se$tor, attested photo$opy of a))o$ation )etter issued +y

the a))o$ation authority, "dministrative Ministry or Division spe$ifying



the sour$e, amount, purpose, va)idity, and other terms and $onditions

against the imports.

0#.0#.. icensin$ for Imports

Most imports into !ang)adesh re4uire a )i$ense from the Fi$ensing "uthority. In re$ent years, the

task of )i$ensing has +een de)egated to the $ommer$ia) +anks. It is done +y F" 7Fetter of

redit "uthori6ation orm9. !)ank F" forms $an +e o+tained +y the importer from

their +anker. (he fo))o*ing do$uments are re4uired to +e su+mitted +y the import to his +anker.

F" orm property fi))edin and signed.

F "pp)i$ation

ur$hase ontra$t in the shape of an Indent or ro forma Invoi$e.

Insuran$e over 8ote

Mem+ership ertifi$ate from a $ham+er of ommer$e and Industry or 'egistered (rade

"sso$iation Import 'egistration ertifi$ate 7I'9.

In $ase of u+)i$ Se$tor, attested photo$opy of a))o$ation )etter issued +y the

a))o$ation authority, "dministrative Ministry or Division spe$ifying the sour$e,

amount, purpose, va)idity, and other terms and $onditions against the imports.

0#.0#.#. *n "penin$ of etter of ,redit

o Importer app)ies to the +ank to open FA in favor of foreign supp)ier. (he +ank has

its printed app)i$ation form and the importer shou)d $arefu))y fi)) in this form. n

re$eiving this app)i$ation, the +ank s$rutini6es it to ensure that:o =hether the $ustomer fu)fi)s a)) the re4uired $onditionsA$riteria to +e e)igi+)e

as an importer as per provisions of the Import o)i$y rder and -uide)ines

for oreign e3$hange (ransa$tions in for$e and the supporting

do$uments Apapers re4uired are su+mitted.o =hether the items for import of *hi$h the do$umentary $redit need to +e

opened is permissi+)e i.e. not in$)uded in the negativeArestri$tive )ist as per Import

o)i$y order in for$e.o =hether *e are ho)ding satisfa$tory $redit report on the +enefi$iary to satisfy

the re)evant provisions of the guide)ines for oreign E3$hange transa$tions



o n re$eipt of the FA app)i$ation over the $ounter or through dispat$hAmai) se$tion, the

re$eiving date and time to +e re$orded on the FA app)i$ation.o S i g n a t u r e o f t h e $ u s t o m e r o n t h e F A a p p ) i $ a t i o n t o + e v e r i f i e d + y

au t hor i 6ed A designated offi$ersA app)i$ation *ith a)) supporting papers to +e $he$ked

to ensure that the re4uired papers areas per re4uirement of -uide)ines for oreign

E3$hange (ransa$tions and are $onsistent to ea$h

..C, app(ication must sho3 the fo((o3in$ c(ear(y+

u)) name C address of the +enefi$iary

(he amount of the $redit

(he redit *hether to +e irrevo$a+)e or $onfirmed irrevo$a+)e.

=hether the $redit is avai)a+)e +y payment, a$$eptan$e or negotiation

n *hi$h party the drafts are to +e dra*n and the tenure of su$h drafts

" +rief des$ription of the goods, in$)uding detai)s of 4uantity and unit pri$e =hether freight is to +e prepaid or not

(he port of shipment and the destination

=hether the transfer of the goods from one vesse) to another, or from one mode

of transport to another, route, is prohi+ited. (he )ast date for shipment

(he date and p)a$e of e3piry of the $redit

8egotiation period

Detai)s of the do$uments re4uired and ho* those are to +e dispat$hed to the

issuing +ank i.e. +y ordinary mai)A$ourier: =hether the $redit is to +e a

transfera+)e one. &o* the $redit is to +e advised i.e. +y mai)Ate)e3. Fetter of redit authori6ation from du)y fi))ed in and signed.

Indent or erforma Invoi$e issued +y Se))er or his agent 7Indenter9

du)y $ounter signed +y the $ustomer. Insuran$e $ertifi$ate or po)i$y 7MarineA"irAMai)A(ru$k9 $overing the goods at

10Ba+ove F A va ) ue f o r t he *ho ) e % ou r ney A s h i pmen t t oge t he r

* it h un $ond it io na ) premium paid re$eipt. rior permissionAregistered F" form, 8o o+%e$tionAany other $ertifi$ates from

the $on$erned authority as re4uired as per provision of the Import o)i$y rder. I.M.. form du)y fi))ed in and signed.

In $ase the FA app)i$ation is not $omp)ete or in $onsisten$e or the re4uired

papers are not su+mitted, the $ustomer shou)d +e prompt)y $onta$ted for

re$tifi$ation of the



he$k *he t he r t he open i ng o f t he Fe t t e r o f r ed i t i s appr oved

+y the $o mp e t en t authority. 'evie* a)) do$uments in$)uding the Fetter of redit and vou$hers.

If found in order, sign the )etter of $redit in$)uding the a$$ounting vou$hers.

(he origina) FA must +e signed %oint)y +y t*o authori6ed signatories.

#.#.%. 9erification and od$ment of Documents by the C, "penin$ Ban&

n re$eipt of the shipping do$uments from the negotiating +ank, the FA pening !ank shou)d

$arefu))y e3amine these to ensure that they $onfirm to the term of the $redit:

(he do$uments have +een negotiated *ithin the stipu)ated date.

(he amount dra*n does not e3$eed the amount authori6ed in to $redit.

(he mer$handise is proper)y invoi$ed.

(he + i ) ) o f Fad i ng i s $ ) ean , s h i pped on +oa r d , s ho*i ng f r e i gh t

p repa r ed and endorsed to the order of the issuing +ank sho*s the

por t of sh ipment, the por t of destination, the name of the $onsignee and the

date of shipment are in keeping *ith the term of the $redit. It is proper)y signed +y the shipping $ompany

(he ertifi$ate of rigin

ther do$uments )ike *eight )ist, pa$king )ist, preshipment Inspe$tion

ertifi$ate et$ ."fter the )odgment, the +ank asks the importer to retire the +i)).

"fter retirement the amount of remittan$e to*ards $ost of the mer$handise is reported to!ang)adesh !ank on orm IM/.

0#.0#.'. Shippin$ 7uarantee+

Shipping guarantee is a Fetter of -uaranteeAIndemnity issued %oint)y +y importer

7$onsignee9together *ith a +ank 7FA opening !ank9 in favor of a $ommer$ia) $arrier

or their agent *here+y they are authori6ed to re)ease imported mer$handise 7tit)e

+eing in favor of the $o issuer !ank9 to a $onsignee in the a+sen$e of origina) shipping +i))i.e. +i)) of FadingAair*ay +i)) *hi)e the $oissuer furnish an assuran$eAundertaking to su+mit the

origina) !i)) of FadingAair*ay !i)) to the $arrier as soon as the same is in their possession.

&o*ever against the issuan$e of a )etter of indemnity, the +ank shou)d o+tain a $ounter

indemnity signed +y the importer in favor of the issuing +ank *here+y they assume fu))

responsi+i)ity for any o+)igation the +ank assume in issuing the shipping guarantee and a)so



undertake a$$eptan$eApayment of do$umentsAdraft under the re)ated Fetter of redit irrespe$tive

of *hether those are dis$repant or not. !efore Issuing the Shipping -uarantee:

o &ead ffi$e approva) is essentia) in $ash *here the $ustomer has not ad%usted

the re)ated import )ia+i)ities or do not have approved FIMAF(' fa$i)ity )imit.o (he !ran$h sha)) o+tain $ounter indemnity from the $ustomer in favor of the

!ank.o ( h e $ u s t o m e r s h a ) ) s u + m i t a n u n $ o n d i t i o n a ) u n d e r t a k i n g t o

a$$ep t the r e ) a t ed shipping do$uments even *ith any dis$repan$ies.o ( h e S h i p p i n g - u a r a n t e e A F e t t e r o f i n d e m n i t y m u s t + e s i g n e d

% o in t ) y +y t *o authori6ed signatories.

Important points to prepare an C,+

(o prepare an FA the +ran$h takes $are on the fo))o*ing points:

FA num+er:

(he +ran$h *i)) put a num+er for ea$h FA., *hi$h is the seria) num+er of the FA for a

parti$u)ar year. irst FA of J!F SG! +ran$h in 200; may +e num+ered )ike J!F ASG! A

1<#2010#01.

P(ace and date of issue+

FA must indi$ate the p)a$e and date of issue.

Date and p)a$e of e3piry:

FA must have an e3piry date. (his is the )ast date of presentation of do$ument under the FA.

)a$e of e3piry of the FA a)so to +e mentioned in the FA. 8orma))y it shou)d +e the $ounter of

the 8egotiating !ank.

Shipment date+

(here shou)d +e a )ast shipmen t dat e after *hi$h shipment is not a))o*ed. !ank may

a)so fi3up a first shipment date +efore *hi$h shipment *i)) not +e a))o*ed.

Presentation period+

Issuing +ank *i)) a))o* a period *ithin *hi$h e3porter must present the e3port do$uments to the

negotiating +ank or to any other nominated +ank. (his may +e 1> days from the date of

shipment. Ma3imum may +e a))o*ed one month, +ut *ithin the e3piry date of the $redit.

*pp(icant+



8ame of the app)i$ant *ith +usiness address to +e put in the FA.

Beneficiary+

8ame of the +enefi$iary *ith address a)so to the indi$ated in the FA.

*dvisin$ Ban&+

8ame of the advising +ank *ith address to +e mentioned in the FA

*mount +

: Every FA must sho* the amount of the FA. (he *ord "+out/ may +e used *ith amount, *hi$h

means 10B more or )ess of the said amount.

Part<shipment and Trans shipment+

Issuing +ank a)so $)ear)y indi$ate in the FA *hether partshipment and (rans shipment

are a))o*ed or not.

*vai(abi(ity+

FA must indi$ate *hether the $redit is avai)a+)e +y payment, +y negotiation or +y a$$eptan$e.

ort of shipment and port of destination:

FA *i)) a)so indi$ate from *here shipment to +eamed and *here goods to +e de)ivered.

Tenure of the draft+

=hether the draft to +e dra*n at sight or sin$e, a)so to +e $)eared in the FA.

Do$uments re4uired:

!ank *i)) give the )ist of re4uired do$uments and data $ontent therein. Ea$h and every term must

+e supported +y the do$uments, +e$ause any term *ithout asking do$ument is va)ue)ess.

Payment+

=hen, *here and +y *hom payment is to +e made, a)so to +e indi$ated in the FA.

Bi(( of (adin$+

!AF must +e issued or endorsed to the order of the Issuing !ank. It shou)d +e 5$)ean and

freight prepaid/ if FA is on ' +asis short form and $harter party !AF to +e

avoided. ")) these terms must +e in$orporated in the !AF $)ause of the FA.

Bi(( of eAchan$e+

+i)) of e3$hange to +e dra*n on the Issuing !ank.



Pre<shipment Inspection+

r e sh ip me nt in sp e$ ti on $e rt if i$ at e is $o mp u) so ry fo r +o th government and private

import e3$ept in fe* $ases.

Data content+

Invoi$e and other do$uments if re4uired shou)d indi$ate the &.S. $ode num+er .F" 8o *ith

des$ription of the item and $ountry of origin.

Specia( conditions+

Spe$ia) $onditions, su$h as in $ase of food, ma$hineries, vehi$)es and another items shou)d +e

in$orporated in the FA *here re4uired.

*uthenticity of the credit+

FA to +e authenti$ated +y putting a test num+er or signing +y t*o authori6ed offi$ers.

"dditiona) $onfirmation to import Fetter of redit

(he +enefi$iary of FA may ask for the additiona) $onfirmation to a )etter of $redit

+y an in t e rna t i ona ) ) y r epu ted +ank ) o$a ted i n +ene f i$ i a r ys $oun t r y. I n th a t

$as e a f t e r add in g $onfirmation, the negotiation +e$omes restri$ted to the +ank *ho has

added their $onfirmation to the $redit.

In $ase there is no +ran$h of the advising +ank of the +enefi$iarys $ountry, the

reim+ursing +ank may $onfirm to the advising +ank that they are ho)ding reim+ursing

authority. (his may a)so serve the purpose of adding $onfirmation. "s per norma) pra$ti$e,

the $harges of adding $onfirmation are +orne +y the +enefi$iary. In $ase the $harges

are to +e +orne +y the importer, the FA opening +ank is to re$over $harges atthe time of issuan$e

of su$h instru$tions.

0#.0#./. *mendment to etter of ,redit

(he )etter of $redit opened +y a +ank may need amendment. If the supp)ier finds that the term of

the $redit $annot +e $omp)ied *ith in fu)), he *ou)d arrange for ne$essary amendment +y the

opener +efore the goods are shipped. (hese amendments must +e advised +y the opening +ank to

the supp)ier through advising +ank. Sometimes the opener a)so may )ike to amend the

$redit after it has +een advised. (hese amendments may re)ate to the de$rease or

in$rease in amount of $redit, $hange in foreign $urren$y, and $hange in the dates of



shipment or negotiation, $hange in mer$handise and other te rm s o f th e $ re d i t. (h es e

am en dm en ts mu st a) so +e ad vi se d +y th e op en in g +a nk to th e supp)ier through the

advising or $onfirmation +ank +efore the shipment is made. or th is kind of amendment, the +ank

*ou)d need a *ritten re4uest from the importer *ho genera))y makes this re4uest after

o+taining $onsent of the supp)ier. Su$h amendments *i)), of $o urs e , +e e f fe $ t ive i f a ) )

the par t i es to ) e t t e r of $ redi t name)y the FA opening +ank, the adver t i s ing

+ank and the supp)ies, agree to it. "mendment is to +e typed , )ike FA, in the printed

format in manifo)d. (he $opies of the amendment must +e dispat$hed to a)) $on$erned as

done in dispat$hing the FA. "mendment $an +e done +y S=I( or "irmai). "mendment

$ommission and other $harges are to +e rea)i6ed from the party +y de+iting his

a$$ount. If the amount of FA is in$reased, the )ia+i)ity vou$her is to +e passed in$)uding the

amount of in$rease on the date of amendment reserving the o)d entry passed at the

time of opening the FA.

0#.0#.. C, *dvisin$

(he FA du)y signed +y t*o authori6ed offi$ers, *hose spe$imen signatures are

a)ready re$orded *ith the $orrespondent +anks, must +e addressed to the +enefi$iary. !ank

genera))y does not enter into dire$t $onta$t *ith the +enefi$iary. Instead they uti)i6e

the servi$es of its o*n +ran$h offi$e 7if any9 or $orrespondent +ank at se))ers $ountry for the purpose of advising it to the se))er 7+enefi$iary9. !e fore fo r*ardingAadvi sing the $red it to

the se))er under appropriate for*arding $overage, the advising +ank has to verify

the signatures of the offi$ers of the opening +ank and ensure that the terms and

$onditions of the $redit are not in vio)ation of regu)ations re)ating to e3port. =hi)e

adv ising, the adv ising +ank does not undertake any )ia+i)ity. "dvising a )etter of $redit.



0#.0#.2. od$ment

If import do$uments are found in order, they are to +e made entry in the +i)) register

and ne$essary vou$hers to +e passed, putting !i)) num+er on the do$uments. (his pro$ess is

$a))ed Fodgment of the +i)). (he *ord Fodgment means temporary stay. Sin$e the do$uments

stay sat this stage for a temporary period i.e. up to retirement of the do$uments, the pro$ess is

$a))ed )odgment. !ank must )odge the do$uments immediate)y after re$eipt of the same, not e3$eeding< +anking

days, fo))o*ing the day of re$eipt of the do$uments, 7"rti$)e 1#, UD>009.

Se$urity Do$uments

(he FA opening +ank +eing re$eived the do$uments from the negotiated +ank *i)) s$rutini6e the

do$uments *ith the respe$tive FA terms and $ondition.

or*arding s$hedu)e of 8egotiating !ank =hether there is any instru$tion.

=hether these instru$tion $an +e $omp)ied *ith.

=hether the negotiating $ommission rea)i6ed.

!i)) of E3$hange 7Draft9

=hether it is dra*n in order.

=hether the amount of draft $orresponds *ith the FA amount.

Draft amount shou)d +e e4ua) or )ess than the FA amount.

=hether the date of the draft of the *ithin the date as per FA et$.

!i)) of Fading 7!AF9

=hether the !AF is $)ean i.e. there is no $)ause )ike some $artons are +roken or any other

$)ause. =hether there is signature of shipping "uthority.

=hether the date of !AF is *ithin the date of shipment as per FA.

=hether the freight is prepared or not as per FA terms.

=hether the part of shipment and part of destination are simi)ar as per FA.

=hether the tit)e of !AF +e)ongs to FA opening +ank.

=hether the fu)) sets of !AF dispat$hed +y negotiating +ank et$.

ommer$ia) Invoi$e

=hether the fu)) parti$u)ars of goods have +een in$orporated.

=hether the amount of invoi$e $orresponds *ith the amount of !i)) of E3$hange and as

per the FA terms. =hether I' 8o. F" 8o et$. have +een in$orporated.

=hether it is signed +y the +enefi$iary

=hether a)) other do$uments are prepared as per FA.

In $ase of dis$repant do$uments (he "rti$)e 1? of UD 7u+)i$ation ?009 says,



=hen the issuing +ank determines that a presentation does not $omp)y, it may refuse to

honor or negotiate. =hen the issuing +ank determines that a presentation does not $omp)y, it may

in its so)e %udgment approa$h the app)i$ant for a *aiver of dis$repan$ies.

=hen the issuing +ank de$ides to refuse to honor or negotiate, it must give a

sing)e noti$e to that effe$t to the presenter. (he noti$e must state:

(hat the +ank is refusing to honor or negotiate and

Ea$h dis$repan$y in respe$t of *hi$h the +ank refuses to honor or negotiate and

a9 (hat the +ank is ho)ding the do$uments pending further instru$tions from

the presenter or +9 (hat the issuing +ank is ho)ding the do$uments unti) it re$eives a *aiver

of the app)i$ant agree to a$$ept it, or re$eives for the instru$tion from the

presenter prior to agreeing to a$$ept a *aiver or$9 (hat the +ank is returning the do$uments ord9 (hat the +ank is a$ting in a$$ordan$e *ith Instru$tions previous)y re$eipt

from the presenter.

(he noti$e re4uired in su+arti$)e 7$9 must +e given +y te)e$ommuni$ation or, if that is

not possi+)e, +y other e3peditious means no )etter than the $)ose of the fifth +anking day

fo))o*ing the day of presentation. If the do$uments are found in order and these are

a$$epta+)e to the importer, the +ank )odge the +i)) in "D 7ayment "gainst Do$uments9

+y $onverting the foreign $urren$y representing the +i)) amount and foreign

$orresponden$es $harges into (aka and asks the importer to retire the +i)) +y sending a

$ost memo indi$ating the amounts paya+)e +y him under different heads.

0#.0#.:. )etirement

=hen the importer re)ease the import do$uments from the +ank +y a$$eptan$eA$ash paymentor under post import +ank finan$e, it is kno*n as retirement of the import do$ument. =hen the importer does

not $ome for*ard to retire the import do$uments, or re4uests the +ank fo r f inan $e aga in s t

t he i mp or te d $ o ns ig nm en t, t he n a ri se s t he n e$ e ss it y o f p os t i mp or t

investment. If the $onsignment is not $)eared *ithin #> days, from the date of arriva), $ustom

authority may au$tion the $onsignment under se$tion 1?< 7@9 and amended se$tion @2 of the



ustom "$t 1;?;. Under su$h a situation +ank +e$omes $ompe))ed for for$ed $)earan$e of the

$onsignments under Murayama post import investment. If the do$uments are dis$repant, partys

a$$eptan$e is re4uired for $)earan$e of the goods.

0#.#.11 oan a$ainst Imported Merchandise< IM 4Post Import inance6

Definition of 4IM6+

Import inan$e p)ays vita) ro)e in a $ountryNs foreign trade +usiness. Import of

goods and servi$e are needed not on)y for e3port produ$tion +ut a)so to supp)y domesti$

industry *ith the ne$essary inputs *hi$h are not )o$a))y avai)a+)e or avai)a+)e at une$onomi$

$ost and are needed for e3pansion and deve)opment. Foan against Imported Mer$handise 7FIM9 is a

fa$i)ity provided +y the !ank to the importers *ho are in shortage of fund to retire the import +i))s and thus to $)ear the goods from the post authority. In other *orks it may +e referred as an

advan$e against mer$handise.

#.#.11.. ,ases of IM account

FIM "$$ounts may +e $reated in the fo))o*ing t*o $ases:

FIM "$$ount on importerNs re4uest.

or$ed FIM "$$ount.

#.#.11.#. IM *ccount in importers re?uest

"fter )odgment of do$uments, the importers $on$erned to +e intimated for ear)y retirement of the

do$uments +y paying outstanding +i)) amount in$)uding other $harge. If the importer is not in a

position to retire the +i)) out of his o*n sour$es, at that moment they may re4uest the +ank to

$)ear the goods +y $reating FIM "$$ount. n re$eipt of the importers re4uest the offi$ia) of the

import +i))s se$tion *i)) $a)$u)ate the tota) )anded $ost of the $onsignment. (o as$ertain the

)anded $ost the fo))o*ing points are to +e $onsidered. Efforts shou)d +e taken so that at )east 20B

to 0B margin of the )anded $ost may +e r ea )i 6e d fr om th e im po rt e r. 'e a) i6 at io n of

mar g i n * i ) ) depend on t he +anker $us t omer re)ationship and a)so on the

marketa+i)ity of the goods.



The fo((o3in$ char$e documents have to be eAecuted by the importer+<

D 8ote 7Demand romissory note9.

Fetter of "rrangement.

Fetter of Dis+ursement.

Fetter of p)edge.

"ny other do$ument of ne$essary. (he +ran$h Managers are not empo*ered to san$tion

the FIM "As in favor of the importers for $)earan$e the goods *ithout o+taining the approva)

from &ead ffi$e. n getting approva) from &ead ffi$e the +ran$h *i)) send the

do$uments to the port $ity +ran$h +y endorsing the +i)) of )ading in favor of them

*ith $ertifi$ation of invoi$e va)ue for $)earan$e the goods through importers nominated as *e)) as

!ankNs approved C agent. In the for*arding )etter $)ear instru$tions to +e given for

dispat$hing the goods either +y train or +y tru$k du)y insured. !efore sending the

do$uments to the port $ity +ran$h the fo))o*ing $harge do$uments have to +e e3e$uted +y

the importer:

D 8ote 7Demand romissory note9.

Fetter of "rrangement.

Fetter of Dis+ursement.

Fetter of p)edge.

"ny other do$ument of ne$essary.

#.#.1. ,omparative Position on "vera(( Import Performance for the (ast #

Eear of !b( 7andaria BranchF<<<<<<<<4i$er in Mi((ion6

Item 200@ 200< B of 200; 2010 B of



-ro*th -ro*th

Import ;;1.12 20>?.<; 10@B 20>?.<; 22@2.> 11B

rom the a+ove graph it is o+served that the Import is in$reased steadi)y. In the year 200< is

in$reased 10@B as $ompared *ith 200?."nd in the year 200@ it is in$reased 11B as

$ompared *ith 200<.

0#.0% @Aport

E3port means outf )o* of goods and servi$es produ$ed in one $ountry, *hi$h

pur$hase +y -overnment, irms and individua)s of other $ountries. Deve)opment of a $ountry

depends on its parti$ipation in the internationa) trade +y in$reasing produ$tion and e3port of

$ommodities and servi$e se$tor. !y *ay of this a $ountry $an improve Emp)oyment



-enerationIn$ome )eve)Savings-ro*thE$onomi$ Deve)opment. (he imports and e3ports trade in

!ang)adesh is regu)ated +y the Import C E3ports ontro) "$t1;>0. (here are num+er of

forma)ities an e3porter has to fu)fi)) +efore and after e3e$ution of e3port, some of areas under:

0#.0%.1. Benefits of @Aport

Deve)opment of a $ountry depends on its parti$ipation in the internationa) trade +y

in$reasing produ$tion and e3port of $ommodities and servi$e se$tor. !y *ay of this a $ountry

$an improve Emp)oyment -enerationIn$ome )eve)Savings-ro*thE$onomi$ Deve)opment.

0#.0%.. ProcedureCorma(ities for @Aport

(he imports and e3ports trade is regu)ated +y the Import C E3ports ontro) "$t 1;>0. (here are num+er of forma)ities an e3porter has to fu)fi)) +efore and after e3e$ution

of e3port, some of areas under: (he intending e3porter has to register *ith ICE and o+tained E3port 'egistration

$ertifi$ate OE'P. (he E' num+er is to +e used in a)) p)a$es re)ating to e3ports

0#.0%.#. Securin$ @Aport "rder

(o se$ure e3port order the e3porters may $onta$t )o$a) $ham+er $ommer$e of potentia) +uyers,

the e3port promotion +ureau, !ang)adesh mission a+road and +y dire$t $onta$t *ith

foreign +uyer through $orresponden$es.

0#.0%.%. )eceivin$ etter of ,redit

"fter making $onta$t *ith foreign +uyers and rea$hing on agreed pri$e and terms, $onditions the

e3porters re$eive Fetter of redit.

0#.0%.'. Procurement and Shipment of 7oods

"fter re$eipt of F the e3porter has to pro$ure or manufa$ture the $ontra$ted goods and ship the

same.

0#.0%./. Preparation and procurement of @Aport Documents



"fter making shipment the e3porter has to prepare do$uments i.e. !i)) of E3$hange,

ommer$ia) Invoi$e, !enefi$iarys $ertifi$ates and pro$ure some do$uments i .e.

(ransport D o $u m en t s, e rt i fi $ at e o f r ig i n, I n su r an $ e $ e rt i fi $ at e ,

I ns pe$ t i on $e r t i f i $a t e and o t he r do$ument s a s r e4u i r ed a s pe r F t e r ms .

0#.0%.. Submission of documents to the ban& for ;e$otiation

"fter preparation and $o))e$tion of a)) do$uments as per F terms the e3porter has to su+mit the

do$uments to the +ank for 8egotiationAaymentAur$hase.

0#.0'. )o(e of Ban&s in the @Aport Sector of Ban$(adesh

")) the finan$ia) re4uirements of an e3porter, from the time he enters into a sa)e $ontra$t and

start *orking on i t and t i ) ) he re$eives f ina) payment from a+road, are met +y$ommer$ia) +anks. In that $ase +anks p)ay an important ro)e in the e3port se$tor of !ang)adesh

and $ontri+ute +y finan$ing in the e3port se$tor +y fo))o*ing $ategories:

Pre<Shipment ,redit+

reshipment $redit is given to the e3porters, for the a$tivities prior to shipment of goods

for e3port. Some e3amp)e of reshipment $redit: ash for )o$a) pro$urement of ra*

materia)s and its re)ated e3penses, ro$uring C ro$essing of goods for e3port, a$king

and transportation of goods for e3port, ayment of insuran$e premium, Inspe$tion fees,

reight $harges et$. Post<Shipment inance+

Usua))y the e3porter $annot afford to *ait for a )ong time for payment to )o$a)

manufa$turerAsupp)ier and other finan$ia) o+)igations. 'esu)ting *hi$h the e3porters

need postshipment $redit fa$i) i ty. onsidering the genuine need, and

*orthiness of e3port and other se$urity measures +ank a))o* $redit fa$i)ity to e3porters.

0#.0/. Different parties invo(ved orei$n eAchan$e transaction

8orma))y the fo))o*ing parties are invo)ved to a do$umentary $redit:

Importer+

(he +uyer or the importer is he *ho initiates the $redit. &e app)ies to +ank for issue foreign

do$umentary $redit. (he o+)igations +et*een the importer and the issuing +ank are governed +y

the app)i$ation$umagreement su+mitted +y the importer to the +ank. &e is +ound to reim+urse the +ank,



*hi$h effe$ts payment or in$urred a deferred payment undertaking or has a$$epted or negotiated

under the $redit as per terms, and to take up the do$uments.

"penin$ Ban&+

(he issuing or opening +ank is the importers +ank and it issues a )etter of $redit

norma) )y pursuant to the terms of sa)es $ontra$t as set out in the app)i$ation for the $redit +y the

importer. (he issuing +ank shou)d nominate the +ank, *hi$h is authori6ed to pay or to a$$ept

drafts or to negotiate, un)ess the $redit a))o*s negotiation +y any +ank.

@Aporter+

(he se))er or e3porter is the +enefi$iary of the $redit. (he )etter of $redit is opened in his

favor and addressed to him. (he +enefi$iary has the o+)igation to make e3port as per the $ontra$tand produ$e the do$uments as re4uired +y the $redit.

The *dvisin$ Ban&+

It is the +ank in the e3porters $ountry 7norma))y the e3porters +ank9, *hi$h is

usua))y the foreign $orrespondent of importers +ank through *hi$h the FA is advised to the

supp)ier. If the intermediary +ank simp)y advisesAnotifies the FA to the e3porter part, it is $a))ed

"dvising !ank/.

The ,onfirmin$ Ban&+

If the advising +ank a)so adds its o*n undertaking to honor the $redit *hi)e advising the same to

the +enefi$iary, he +e$omes the $onfirming +ank. In addition, +e$omes )ia+)e to pay

for do$uments in $onformity *ith the FAs terms and $onditions. (he )ia+i)ity of the

$onfirming +ank is the primary )ia+i)ity and it is not $ontingent on the fu)fi))ment of the

o+)igation +y the issuing +ank.

The *cceptin$ Ban&+

"$$epting +ank is the +ank nominated in the )etter of $redit to a$$ept +i))s dra*n

under the $redit. If the +ank so nominated a$$epts the nomination, its responsi+i)ity to the

+enefi$iary is not on)y to a$$ept the drafts dra*n +ut a)so to make payment on their due dates.



The Payin$ Ban&+

aying +ank is a +ank in the +enefi$iarys $ountry nominated in the )etter of $redit

to make payment against do$uments to +e tendered under the $redit. aying !ank must e3amine

a)) do$uments *ith reasona+)e $are to as$ertain that these are dra*n in a$$ordan$e *ith the terms

and $onditions of the $redit.

)eimbursin$ Ban&+

( h e i s s u i n g + a n k m a y i n d i $ a t e i n t h e $ r e d i t t h e n a m e o f a

+ a n k . r o m * h o m t h e payingAnegotiating +ank $an o+tain reim+ursement. (he

do$uments are sent to the issuing +ank. (he negotiatingApaying +ank simu)taneous)y makes a

$)aim *ith the reim+ursing +ank for the payment effe$ted. 8orma))y the reim+ursing +ank *ou)d

+e the +ank *ith *hi$h the issuing +ank maintains an a$$ount.

The Transferrin$ Ban&+

If the FA is transfera+)e, then the 1 st +enefi$iary of the FA may transfer the FA to

the 2nd +enefi$iary, through a +ank nominated +y the Issuing !ank. (his +ank is $a))ed the

(ransferring !ank.

0#.0. Document re?uired for orei$n @Achan$e Transactions

@Aport<Import transactions as& for the fo((o3in$ documents+

(ransport Do$uments

Fetter of redit

Insuran$e Do$uments

ommer$ia) Invoi$e

ther Do$uments

0#.0.1. Transport Documents

(ransport do$uments $omprises of !i)) of Fading, "ir*ay !i))s, (ru$k 'e$eipts,

'ai)*ay 'e$eipts and In)and =ater*ay 'e$eipts. ,hec&in$ points of this document are+

(he !i)) of Fading is issuedAendorsed to the order of 8egotiating !ank.

!i)) of Fading is $)ean, sho*ing Shipped on !oard/ notation, marked 5reight

0#.0.. etter of credit



" )etter of $redit is a )etter issued +y a +ank 7kno*n as the opening or the issuing +ank9 at the

instan$e of its $ustomer 7kno*n as the opener9 addressed to a person 7+enefi$iary9 undertaking

that the +i))s dra*n +y the +enefi$iary *i)) +e du)y honored +y it 7opening +ank9

provided $ertain $onditions mentioned in the )etter gave +een $omp)ied *ith.

(he fo))o*ing diagram +rings out $)ear)y the operation of )etter of $redit:

hart 1?: )o*$hart of Fetter of redit peration

0#.0.#. ,ommercia( Invoice

It in$)ude a)) types of information su$h as des$ription of goods, ort of destination,

ort of )oading, F no, Importer name, name of issuing !ank et$.

he$king points of this do$ument are:

(he invoi$e dated and signed +y the +enefi$iary.

(he invoi$e is issued to the party $on$erned as stated in the F.

Des$ription of goods is as stated in the F.



Unit pri$e mentioned as stated in the F.

roper (rade(erm is mentioned.

0#.0.%. Insurance Documents

Checking points of this document are (in case of CIF asis)!

(he Insuran$e o)i$y is va)id.

(he po)i$y is issued in the name of F Issuing +ank aA$: importer.

(he po)i$y is signed +y the authori6ed offi$ia) of the Insuran$e ompany.

(he po)i$y is in negotia+)e form, du)y stamped and dated prior the !F date

Des$ription of goods, name of $arrying vesse) sho*n in Insuran$e o)i$y are

same as sho*n in !F. (he po)i$y $overs (ransshipment Oif a))o*ed in FP $)ause.

o)i$y $overs 10B a+ove the va)ue of $onsignment. o)i$y indi$ates *here and in *hi$h $urren$y the $)aim Oif anyP *i)) +e sett)ed.

0#.02. orei$n )emittance

0#.02.1. "ut3ard remittance+

n Mar $h 2# , 1;;# !ang ) ades h (aka *as de$ ) a r ed $onver t i + ) e f o r $u r r en t

in t e rna t i ona ) transa$tion. "s a resu)t remittan$es +e$ome more )i+era)i6ed. ut*ard

remittan$e in$)ude sa)e of oreign urren$y +y ((, M(, Draft, ( or in $ash for priva te , of fi$i a) and $ommer$ia) purpose.

Issuance of out3ard DD and TT

"Ds may a)so issue DD, (( on their foreign $orrespondent favoring !ang)adesh nationa)s

or foreign nationa)s as per their entit)ement. !ut foreign (( and DD are not issued in this +ran$h.

0#.02.. In3ard remittance+

(he term in*ard remittan$e in$)udes not on)y pur$hase of foreign $urren$y +y ((, M(, Draft et$.

+ut a)so pur$hase of +i))s, pur$hase of (. Utmost $are shou)d +e taken *hi)e pur$hasing notes,

(, DD and simi)ar instrument for prote$ting the +ank from pro+a+)e )oss as *e)) as

safety of the +ank offi$ia)s $on$erned. !ut this type of pur$hase is not done in this +ran$h.

#.22.)emittance @arnin$s



It represents transfer of fund from one p)a$e to another via offi$ia) $hanne).!naks have *ide

net*ork of +ran$hes a)) over the $ountry and offers different types of remittan$e fa$i)ities to the

pu+)i$:

J!F made a high re$ord to the tune of !D( >,0?1.0 mi))ion in 200; $ompared to that of !D(

#,<22.;0 mi))ion in 200@. (he !ank has deepened its step on the foreign soi)s further +y

esta+)ishing more and more remittan$e arrangements *ith overseas e3$hange $ompanys *here

!ang)adeshi e3patriates are *orking. (hese in$)ude United Gingdom, Gu*ait, !ahrain, anada,

Ita)y, ran$e et$.

0#.02.#. ,o((ection of forei$n currency instrument

(he Janata !ank Ftd. $o))e$ts .. instruments on +eha)f of their $ustomer. (o $o))e$t pro$eed of

oreign Instrument fo))o*ing pro$edures to +e maintained:

'e$eive instrument *ith deposit s)ip

"ffi3 $rossing stamp of the +ank

Entry in the register putting ! num+er

"ffi3 endorsement pay to the order of any +ank or trust $ompany, prior endorsement guaranteed./

Instrument to +e sent to ad%a$ent $orrespondents.

0#.0:. Different Methods of Internationa( Trade Payment+

,ash in *dvance+



Under this arrangement, +uyer pays the va)ue to e3porter against the goods t o +e s h ipp ed

and s e r v i $es t o +e p r ov i ded i n s ome f u t u r e da t e . "f t e r r e$e i p t o f paymen t

e3porter ship the goods and provides servi$es to +uyers. !ut the system is disadvantageous

for +uyer +e$ause +uyer +)o$king his fund in advan$es having no assuran$e of re$eipt of goods

and servi$e in time as per $ontra$t. So su$h type of payment is $onsidered as risky and e3pensive

for +uyers +ut favora+)e for se))er.

"pen *ccount+

Under this method, the se))ers are in risky situation +e$ause he has to de)iver the goods and

servi$e to +uyer +efore re$eiving payment. !uyer makes payment on)y after re$eipt

of goods and servi$es as per $ontra$t terms. So +efore going su$h transa$tion se))ers

shou)d $he$k the past re$ord, *orthiness and +usiness history of the +uyer and if it

is found satisfa$tory on)y se))er $an pro$eed further.

,o((ection a$ainst Payment DCP+

Under this method, e3porter ship the goods and dra* +i)) of e3$hange on the +uyer and

su+mit the do$uments to a +ank *ith instru$tion to $o))e$t the pro$eeds through its

$orrespondent +ank )o$ated in the +uyers $ountry. In this $ase do$uments de)ivered on)y against

payment.

,o((ection a$ainst *cceptance DC*+Under this method, e3porter ships the goods and dra* +i)) of e3$hange on the +uyer and su+mit

the do$uments to a +ank *ith instru$tion to $o))e$t the pro$eeds through its $orrespondent +ank

)o$ated in the +uyers $ountry. In this $ase do$uments de)ivered against a$$eptan$e of Drafts +y

the +uyer.

Documentary ,redit+

D o $ u me n t a r y $ r e d it i s t h e $ ) a s si $ m e t h od . ( h i s m e t h od r e d u $ ed payment

re)ated risks for +oth e3porter and importer su+stantia))y. !e$ause do$umentary $redits

$onditiona) payment undertaking of issuing +ank to the e3porter against $omp)ian$e

of $ertain terms and $onditions and su+mission of re4uired do$uments as per $redit

terms. Sounder this payment method +oth e3porter and importers fee) safe to dea).

0#.10. @Aamination and ;e$otiation of @Aport Documents+



(here are many instan$es *here e3porters invo)ve themse)ves in $ommitting fraud so *hi)e

e3porters tendered e3port do$uments for negotiation, spe$ia) $are shou)d +e taken in $he$king

the said do$uments to avoid fraud forgery and prote$t the interest of the +ank. o))o*ing are

some important $he$king points:

Gno* your e3porter

Qou shou)d kno* your $ustomer $onsidering his re)ationship *ith the +ank, previous

tra$k re$ord and *orthiness. roper $he$king of E3port F

E3por t F i s authenti $a ted, ir revo$a+)e, va) id , ree 8egot ia+)e in

!ang)adesh, ayment instru$tion is $)ear, issued under UD. roper $he$king of E3port Do$uments

!i)) of e3$hange, ommer$ia) invoi$e, (ransport do$uments and other do$uments are

prepared and presented as per F terms. Shipment "fter the $ontra$t the e3porter takes a))

ne$essary steps to ship the goods. &e may pro$ure or manufa$ture the goods. ai)ure to

maintain the de)ivery s$hedu)e *i)) e3pose the e3porter to $)aim from the +uyers for

damages on a$$ount of nonshipment or )ate shipment, and in addition the

e3porter may a)so )ose the patronage of the +uyer for future e3port orders. =hi)e shipment

and after shipment the e3porter shou)d o+tain or prepare the fo))o*ing do$uments: ER orm

hoto$opy of registration $ertifi$ate

hoto$opy of the $ontra$t

hoto$opy of the FA ustoms $opy of E' orm for shipment of %ute goods and E orm for ra* %ute

reight $ertifi$ate from the +ank in $ase of payment of the freight at the port of

)ading is invo)ved !i)) of Fading, 'ai)*ay re$eipt, osta) re$eipt, "ir *ay +i)) or (ru$k re$eipt

a$king )ist

ertifi$ate of origin

Shipping instru$tions

Insuran$e po)i$y.

Issuan$e of ER orms

" )) e 3p or ts m us t + e d e $) ar ed o n E R o rm . "D + ra n$ he s

s upp )y t hes e fo rm s. (h e +ank $ertifies ER form on)y after $onfirming

the fo))o*ing: "rrangements have +een made for rea)i6ation of e3port pro$eeds.

!onfires of the importerA$onsignees a+road



"rrangements have +een made for re$eipt +y authori6ed dea)er of do$uments of

tit)e to goods, (he e3porter has signed the ER.ER num+er shou)d +e as under:

"ds 'egister seria) 8o. . Qear

0 1 1 0 0 0 2 > 1 0

Submission of Documents

"fter the shipment, the e3por ter su+mits a)) these do$uments to +ank for

negotiation. (he e3porter remains in $onstant tou$h *ith the negotiating +ank for

ear)y negotiation of e3port +i))s. If any minor mistake is dete$ted or any do$ument is foundmissing the same shou)d immediate)y +e $orre$ted or supp)ied for ear)y sett)ement of the matter.

@Aport Documents chec&in$

"fter su+mission of e3ports do$uments +y the e3porter, +ank must $he$k, *hether

a)) the re4uired do$uments su+mitted or not. !ank must e3amine a)) do$uments stipu)ated in the

$redit *ith reasona+)e $are to as$ertain *hether or not they appear, on their fa$e to +e in

$omp)ian$e *ith the terms and $onditions of the $redit. Do$uments not stipu)ated in the $redit

*i)) not +e e3amined +y the +ank. (he fo))o*ing points of do$uments shou)d +e $arefu))y

s$rutini6ed:

!i)) of e3$hange

"mount of +i)) differs *ith invoi$e

8ot dra*n on FA issuing +ran$h

8ot signed

(enor of AE not identi$a) *ith FA

u)) set not su+mitted

Invoice+

8ot issued +y the +enefi$iary

8ot signed +y the +enefi$iary

8ot made out in the name of the app)i$ant

Des$ription, pri$e, 4uantity, sa)es terms of the goods not $orrespond to the $redit

8ot marked one fo)d as origina)

Shipping marks differs *ith !AF and pa$king )ist



Pac&in$ ist+

-ross *eight, net *eight and measurement, num+er of $artoonsA pa$kages differs

*ith !AF.

8ot marked one fo)d as origina) 8ot signed +y the +enefi$iary

Shipping marks differs *ith !AF

Bi(( of adin$C*ir =ay Bi((+

u)) set of +i)) not su+mitted

!AF is not dra*n or endorsed to the order of I!!F

S h ip p in g o n ! o ar d /, ri g ht r ep a id / o r re i gh t $ o )) e $t /

e t $ . no ta t ions a re no t marked on the !AF.

!AF not indi$ate the name and $apa$ity of the party i .e. $arr ier or master, on *hose +eha)f the agent is signing the !AF.

Shipped on +oard notation not sho*ing name of pre$arriage vesse)A intended

vesse) Shipped on +oard notation not sho*ing port of )oading and vesse) name 7in $ase

!AF .indi$ated a p)a$e of re$eipt or taking in $harge different from the port of

)ading9 Short form !AF.

&atter party !AF.

Des$ription of goods in !AF. not agrees *ith that of invoi$e, !AE. ")terations in !AF. not authenti$ated

Foaded on de$k

0#.11. Modes of Payment

(he most $ommon methods of payment under a FA are as fo))o*s:



#.11.1. Si$ht or Payment credit

=hen the $redit stipu)ates that drafts 7+i)) of e3$hange9 shou)d +e dra*n under it on D terms

invo)ving payment to the +enefi$iary on presentation of do$uments, it is kno*n as a Sight

or ayment redit/. In this $redit the issuing +ank nominates a +ank in the e3porters $ountry as

the paying +ank. If the paying +ank a$$epts its nomination, its position is that of an agent of the

issuing +ank. =hen the do$uments under the $redit are presenter to it, it pays the +enefi$iary

provided a)) the terms and $onditions of $redit have +een $omp)ied *ith. It gets reim+ursement

from the issuing +ank for the amount paid.

#.11.. Deferred Payment ,redit

(he term Deferred/ means postponed to a future period or date. =hen a $redit does

not re4uire the payment to the +enefi$iary immediate)y on presentation of the do$uments +ut

after spe$ified period has e)apsed, it is kno*n as Deferred ayment redit/. "$$ording to thistype of $redit, the payment is hot made in fu)) on the tender of do$uments +ut +y insta))ments at

predetermined future dates.

#.11.#. *cceptance ,redit

=hen under the terms of a )etter of $redit drafts are dra*n on D" terms invo)ving payment to the

+enefi$iary on the maturity of the a$$epted !i)) of E3$hange dra*n under it, the )etter or $r ed it

is referred to as an "$$eptan$e redit/ or a (erm redit/. In this form of $redit

the +enefi$iary dra*s a draft for parti$u)ar sin$e 7e.g. 0, ?0, ;0 days sight or even

)onger9, paya+)e upon either the $orrespondent +ank or the issuing +ank.

#.11.%. ;e$otiation ,redit



In a negotiation $redit the do$uments are a$$ompanied +y a sight draft 7+i)) of e3$hange9.

(he +i)) of e3$hange may +e dra*n on the issuing +ank or the importer or any other +ank

stipu)ated in the $redit. (he +ank, *hi$h negotiates do$uments under the $redit,

pur$hases the +i )) of e3$hange and pays the amount to the +enefi$iary *ho tenders the

do$uments. (he issuing +ank reim+urses the negotiating +ank.

Sett(ements of c(aim

E3porter very often $)aims of various natures from the foreign +uyers against their e3ports. It

shou)d +e ensured tha t genuine $ )a ims of the foreign +uyers a re set t) ed

e3peditious)y +y the e3porters $on$erned so that the reputation of the $ountry is not

%eopardi6ed in the internationa) market. Under th e E3$h ange on t r o ) in s t ru $ t ion s in

fo r$ e, !a ng )a de sh + an k s pr io r ap pr o va ) in individua) $ase is ne$essary for making

remittan$es against e3port $)aims.

-enera) permission has, ho*ever, +een a$$orded to the "Ds to make remittan$es in foreign

e3$hange to*ards $)aims against e3ports of nontraditiona) items, provided the e3porters are

*i))ing to make su$h remittan$e from the e3$hange market. Sett)ement of $)aims against $ash

foreign e3$hange resour$es of the $ountry *i)), ho*ever, re4uire !ang)adesh !anks

prior approva).

0#.1. orei$n ,urrency *ccounts+

(he Janata !ank Ftd opens the fo))o*ing a$$ounts for dea)ing remittan$es:

8D "$$ounts:

8onresident oreign urren$y Deposit 78D9 a$$ounts may no* +e maintained as )ong as the

a$$ount ho)ders desire. "mounts +rought in +y nonresident !ang)adeshis $an +e deposited in

foreign $urren$y a$$ount any time after return to !ang)adesh.

., *ccounts of non<resident Ban$(adeshis

oreign $urren$y a$$ounts opened in !ang)adesh in the names of !ang)adesh

nat iona)s or persons of !ang)adesh origin *orking or se)f emp)oyed a+road $an no* +e

maintained as )ong as the a$$ount ho)dersN desire.



),D *ccounts+

ersons ordinari)y resident in !ang)adesh may maintain foreign $urren$y a$$ounts *ith foreign

e 3 $ h a n ge + r o u g ht i n a t t h e t i m e o f t h e i r r e t u r n t o ! a n g ) ad e s h f r o m v i s i t s

a+ ro ad . (h es e a$$ounts are termed as 'esident oreign urren$y Deposit 7'D9

a$$ounts. (he amount +rought in *ith de$)aration to $ustoms authorities on form MJ and up

to US >000 +rought in *ithout de$)aration may +e $redited to this a$$ount. 'D

a$$ounts may +e opened in US Do))ar, Euro, ound Ster)ing, Deuts$he Mark or

Japanese. Interest may +e paid on these deposits if these are for a term of not )ess than one

month and the +a)an$e is not )ess than US 1000 or ound Ster)ing >00 e4uiva)ent.

., *ccounts of other entities

"Ds do not re4uire prior permission of !ang)adesh !ank for opening of foreign

$ur ren$y a$$ounts of:

• 8onresident foreign personsAfirms

• dip)omati$ missions in !ang)adesh and their e3patriates

• dip)omati$ +onded *arehouses 7duty free shops9

• Fo$a) and %oint venture $ontra$ting firms emp)oyed to e3e$ute

pro%e$ts finan$ed +y foreign donorsAinternationa) donor agen$ies.

orei$n )emittances occurs for the fo((o3in$ reasons+

Investment in sharesAse$urities +y nonresidents

'emittan$e of profits

'emittan$e of dividendA$apita) gain

'emittan$e of sa)aries and savings +y e3patriates

'emittan$e on a$$ount of training and $onsu)tan$y

'emittan$e +y shipping )ines, air)ines, $ourier servi$e $ompanies

9isit *broad

!ooking of assage rivate (rave)

!usiness trave) 4uota for importers and manufa$turers produ$ing for domesti$

markets Edu$ation

Medi$a) treatment

(aking outA+ringing in of !ang)adesh (aka



(aking outA+ringing in of persona) %e*e)ry

Misce((aneous )emittances

'emittan$e of mem+ership fees

Eva)uation and Kisa ro$essing ee

Kisa fee: ami)y maintenan$e

0#.1#. "ther services

( he re a re so me o th er a $t i vi ti e s p er fo rme d + y fo re ig n e 3$ ha ng e

depa r t me n t . (hes e a re mentioned in +e)o*:

8'!7 8onresident of !ang)adesh9 Share

Different types of se$urity for 8'!, =age earner assport servi$es

#.1#.1. ;)B Share+

8o* 8on'esident of !ang)adesh $an invest in $apita) market. Every $ompany provides

some +enefit to attra$t 8'! investors. (hey give 4uota on a portion of their authori6ed $apita)

for 8'!. J!F a)so provide these servi$es to their 8'! $)ients.

J!F app)y for 8'! share on +eha)f of their $)ients

J!F issues DD

ther servi$es )ike refund *arrant, +uy se)) of their share et$.It is a)so most

profi ta+)e fo r the +ank. (he $ont ri+ution of 8'! share on to ta ) earnings

of foreign e3$hange *i)) dis$uss in ne3t part of the report.

#.1#.. Different Types of Securities for ;)B+

J!F a)so issues different types of government se$urities for *age earners, these are:

=age Earners !ond

=age Do))ar !ond et$.

0#.1%. inancia( Performance of orei$n @Achan$e operation of 5B#.1%.1

Import @arnin$s+



(he import earning of the J!F from the import re)ated servi$es has in$reased to (k

2,[email protected]))ion in 200; from (k ;,<#?.00 mi))ion in 200>.

hart 1@: Import earnings gro*th Sour$e:

"nnua) 'eport of J!F, 200> 200;

Interpretation+

In the year 200;, import earning is in the highest )eve), it *as in$reasing from the year 200>. (he

)ine is up*ard s)opping. So it indi$ates a positive sign on import earnings of J!F.

#.1%.. @Aport @arnin$s+

(he e3port earning of the J!F from the e3port re)ated servi$es has in$reased to ?0<@.<; mi))ion in 200@ from (k

2?? mi))ion in 200#.

Qear E3port Earnings 7(aka in Mi))ions9

200> >@;#.00

200? <0,@;<.00

200< <1@>>.@<200@ @>#1@. <;

200; @@?>.00



Interpretation+

( h e t a + ) e a n d g r a p h s h o * t h e s a m e r e s u ) t t h a t t h e e 3 p o r t e a r n i n g s a r e

in$reased year +y year. In the year of 200; it *as in the highest point as the same time up*ard

s)opping. It is a)so positive sign for J!F.

#.1%.#. orei$n )emittance+

(he foreign remittan$e of the J!F is in$reased to (G. ><@; mi))ion in 200@ from (k

2?12mi))ion in 200<. (his indi$ates a 121B in$rease in remittan$e performan$e from the

previous year. (he fo))o*ing graph sho*s the gro*th in the foreign remittan$e:

Qear oreign remittan$e 7(aka in mi))ions9

200> 2?><2.@0

200? 2;2?<.00200< ?<@@.00

200@ #>;2#.00

200; >?1;0.00

#.1%.#.orei$n @Achan$e Division

ne of the )argest +usinesses $arried out +y the $ommer$ia) +ank is foreign trading. (he trade

among various $ountries fa))s for $)ose )ink +et*een the parties dea)ing in trade. (he situation$a))s for e3pertise in the fie)d of foreign operations. (he +ank, *hi$h provides su$h operation, is

referred to as rending internationa) +anking operation. Main)y transa$tions *ith overseas

$ountries are respe$ts of import e3port and foreign remittan$e $ome under the previe* of

foreign e3$hange transa$tions. Internationa) trade demands a f)o* of goods from se))er to +uyer

and of payment from +uyer to se))er. In this $ase the +ank p)ays a vita) ro)e to +ridge +et*een the

+uyer and se))er.

In the J!F Ga*ran !a6ar !ran$h there are si3 offi$ia)s are *orking $ontinuous)y *ith great

effort and team*ork there are 4uite effi$ient ski)) and ta)ented the a+ove %o+s are performed in

this department. (he !ang)adesh !ank and the respe$ted K of this se$tion $ontro) them. (here

are more than ;> $)ients and 2; $ountries they are dea)ing *ith. (hey +e)ieve in team*ork and

e3treme hard *ork.



Foreign #$change Department is an internationa) department of the +ank. It dea)s

*ith g)o+a))y and fa$i)itates internationa) trade through its various modes of servi$es. It +ridges

+et*een importers and e3porters. !ang)adesh !ank issues )i$ense to s$hedu)ed +anks to dea)

*ith foreign e3$hange. (hese +anks are kno*n as "uthori6ed Dea)ers. If the +ran$h is

authori6ed dea)er in foreign e3$hange market, it $an remit foreign e3$hange from )o$a) $ountry

to foreign $ountry. (his department main)y dea)s *ith foreign $urren$y. (his is *hy this

department is $a))ed foreign e3$hange department.

Some nationa) and internationa) )a*s regu)ate fun$tions of this department. "mong these,

oreign E3$hange "$t, 1;#< is for dea)ing in foreign e3$hange +usiness, and Import and E3port

ontro) "$t, 1;>0 is for Do$umentary redits. -overnments Import and E3port po)i$y is

another important fa$tor for import and e3port operation of +anks.

J!F Ga*ran !a6ar !ran$h oreign E3$hange Department started foreign e3$hange operation

nine years ago it dea)s main)y in import +ut it a)so operates e3port remittan$e and other

a$tivities.

#.1%.%.orei$n Trade

oreign trade $an +e easi)y defined as a +usiness a$tivity, *hi$h $rosses nationa) +oundaries.

(hese may +e +et*een parties or government ones. (rade among nations is a $ommon

o$$urren$e and norma))y +enefits +oth the e3porter and importer. In many $ountries,

internationa) trade a$$ounts for more than 2>B of their nationa) in$omes.

oreign trade $an usua))y +e %ustified on the prin$ip)e of $omparative advantage. "$$ording to

this e$onomi$ prin$ip)e, it is e$onomi$a))y profita+)e for the $ountry to spe$ia)i6e in the

produ$tion of that $ommodity in *hi$h the produ$er $ountry has the grater $omparative

advantage and to a))o* the other $ountry to produ$e that $ommodity in *hi$h it has the )esser

$omparative advantage. It in$)udes the spe$trum of goods, servi$es, investment, te$hno)ogy

transfer et$. (his trade among various $ountries $a))s for )oses )inkage +et*een the parties

dea)ing in trade it has +een dea)ing *ith more than #0 ountries. (he +anks, *hi$h provide su$h

transa$tions, are referred to as rendering internationa) +anking operations. Internationa) trade

demands a f)o* of goods from se))er to +uyer and of payment from +uyer to se))er. "nd this f)o*



of goods and payment are done through Fetter of redit. M!F fo))o*s the ru)es of !ang)adesh

government and !ang)adesh +ank stri$t)y.

#.1%.'.Import @arnin$s

Import earnings during finan$ia) year 200; amounted to USD 22.>1 +i))ion $ompared to USD

21.? +i))ion in finan$ia) year 200@ sho*ing #.0?B gro*th in import $ost. Import trend, during

the )ast t*o 4uarter in finan$ia) year 200; fa)) +e)o* $ompared to that of finan$ia) year 200@.

5B has 4ua)ity finan$ing *hi)e fa$i)ity import trade in 2000 to 200;. During the year 200@, the

+ank e3e$uted a tota) of 2021 )etters of $redit amounting to !D( >?>2@.@0 mi))ion. (he

prin$ipa) items *ere $apita) ma$hineries, garments and a$$essories, ships +reaking. Import

payments during Q0@ amounted to USD 21.?0 +i))ion. 7 2<.B of -D9 $ompared to USD

1<.1? +i))ion 72>.1 B of -D 9 In Q 0<, sho*ing an up*ard trend in import $ost.

#.1%./.The ,omposition of Import

Item Percenta$e

• ood - 1/.1%G.

• Intermediate $oods- 2.1/G.

• Petro(eum and petro(eum products- 11.2G.

• TeAti(e and artic(es- :.G.

• ,apita( mechinery- 2.G.

• Iron stee( and other base meta(s- '.'G.



• )a3 cotton- '.2G.

• ,hemica(s- #.:G.

• Earn #.G-

• erti(i8er- #.1G.

#.1%./.Bac&<to<Bac& etter of ,redit 4BTB6+

!ang)adesh is a deve)oping $ountry. "fter re$eiving order from the importer, very fre4uent)y

e3porters fa$e pro+)ems of s$ar$ity of ra* materia). !e$ause some ra* materia)s are not

avai)a+)e in the $ountry. (hese have to +e $o))e$ted from a+road. In that $ase, e3porter gives

)ien of e3port FA to +ank as se$urity and opens an FA against it for importing ra* materia)s.

(his FA is $a))ed !a$k (o !a$k FA. In +a$k to +a$k FA, M!F keeps no margin.

Sometimes there is provision in the e3port FA that the importer $an use the $ertain portion of

the e3port FA amount for importing a$$essories that are ne$essary for the making of the produ$t. n)y in that $ase, !(! is opened.



#.1%..Payment of Bac&<to<Bac& C,+

)ient gives the payment of the !(! FA after re$eiving the payment from the importers. !ut

in some $ases, $)ient se))s the +i))s to the M!F. !ut if there is dis$repan$y, the M!F sends it for

$o))e$tion.

In $ase of !(! FA, M!F gives the payment to the +enefi$iary after re$eiving the payment

from the FA of the finished produ$t 7i.e. e3porter9. !ank gives the payment from D

"$$ount 7Deposit oreign urren$y "$$ount9 *here Do))ar is deposited in nationa) rate.

or !(! FA, opener has to pay interest at FI!' rate 7Fondon Inter !ank ffering 'ate9.

-enera))y FI!' rate f)u$tuates from >B to <B.

" s$hedu)e named ayment rder or*arding S$hedu)e is prepared *hi)e making the payment. (his s$hedu)e is prepared *hen the payment of FA is made. (his s$hedu)e $ontains

the fo))o*ings:

i. Reference number of the beneciary’s bank and date.

ii. Beneciary’s name.

iii. Bill value.

iv. Payment order number and date.

v. Equivalent amount in Taka.#.1%.2.*dvance a$ainst )ed<c(ause C,+

Under 'ed $)ause )etter of $redit, the opening +ank authori6es the "dvising !ankA8egotiating

!ank to make advan$e to the +enefi$iary prior to shipment to ena+)e him to pro$ure and store

the e3porta+)e goods in anti$ipation of his effe$ting the shipment and su+mitting a +i)) under

the FA. as the $)ause $ontaining su$h authority is printed in red ink, the FA is $a))ed 'ed

$)ause and -reen $)ause respe$tive)y. (hough it is not prohi+ited, yet very rare in !ang)adesh.

#.1%.:.Post Shipment ,redit+

(his type of $redit refers to the $redit fa$i)ities e3tended to the e3porters +y the +anks after

shipment of the goods against e3port do$uments. 8e$essity for su$h $redit arises, as the

e3porter $annot afford to *ait for a )ong time for *ithout paying manufa$turersAsupp)iers.



!efore e3tending su$h $redit, it is ne$essary on the part of +anks to )ook into $arefu))y the

finan$ia) soundness of e3porters and +uyers as *e)) as other re)evant do$uments $onne$ted *ith

the e3port in a$$ordan$e *ith the ru)es and regu)ations in for$e. !anks in our $ountry e3tend

post shipment $redit to the e3porters through:

1. 8egotiation of do$uments under FA

2. oreign Do$umentary !i)) ur$hase 7D!9:

. "dvan$es against E3port !i))s surrendered for $o))e$tion

#.1'.0.;e$otiation of documents under C,+

(he e3porter presents the re)ative do$uments to the negotiating +ank after the shipment of the

goods. " s)ight deviation of the do$uments from those spe$ified in the FA may raise an e3$use

to the issuing +ank to refuse the reim+ursement of the payment a)ready made +y the negotiating

+ank. So the negotiating +ank must +e $arefu), prompt, systemati$ and indifferent *hi)e

s$rutini6ing the do$uments re)ating to the e3port.

Foreign Documentary Bill Purchase (FDBP):

Sometimes the $)ient su+mits the +i)) of e3port to +ank for $o))e$tion and payment of the !(!

FA. In that $ase, +ank pur$hases the +i)) and $o))e$ts the money from the e3porter. M!Fsu+tra$ts the amount of +i)) from !(! and gives the rest amount to the $)ient in $ash or +y

$rediting his a$$ount or +y the pay order.

or this purpose, M!F maintains a separate register named D! 'egister. (his register

$ontains the fo))o*ing information:

o Date

o T'eferen$e num+er 7D!9

o 8ame of the dra*er

o 8ame of the $o))e$ting +ank

o onversion rate

o !i)) amount +oth in figure C in (aka.



o E3port form num+er

o E3port FA num+er

#.1'.1.C, Terms:

Ea$h and every $)ause in the FA must +e $omp)ied *ith meti$u)ous)y and ensure the

fo))o*ing:

1. (hat the do$uments are not state

2. (hat the do$uments are negotiated *ithin the FA va)idity, It a $redit e3pire on a

re$ogni6ed +ank ho)iday its )ife is automati$a))y +e$ome va)id upto the ne3t *orks day.

. (hat the do$uments va)ue does not e3$eeds the FA va)ue.

#.1'..DraftCBi(( of @Achan$e+

Draft is to e3amined as under:

1. Draft must +e dated

2. It must +e made out in the name of the +enefi$iarys +ank or to +e endorsed to the +ank.

. (he negotiating +ank must verify the signature of the dra*er.

#. "mount must +e ta))ied *ith the Invoi$e amount.

>. It must +e marked as dra*n under FA 8oDatedIssued +y..!ank

#.1'.:orei$n eAchan$e income

oreign e3$hange in$ome is a great sour$e of revenue for the +ank. (his revenue $omes in t*o

forms: $ommission and e3$hange gain. &ere, si3 years data of foreign e3$hange in$ome is

presented on the fo))o*ing *ay



(he different sour$es of in$ome for foreign e3$hange +usiness are revea)ed and the in$ome is

sho*ing a $ontinuous in$reasing trend. (he most dominant varia+)e in foreign e3$hange in$ome

is e3$hange gain. (his is a$hieved from +oth e3port and remittan$e +usiness. (he graph is

sho*ing that foreign e3$hange in$ome is in$reasing. In year 200; has a$hieved highest in$ome

from foreign e3$hange.

)e$u(ation for orei$n @Achan$e Transaction

Many regu)ation have +een dev+e)oped to do smooth fun$tioning and $ontro))ing the

internationa) +usiness. Internationa) ham+er of ommer$e 7I9 has +een p)aying a vita) ro)e

for effe$tive and effi$ient fun$tion in internationa) +usiness. In our $ountry, the entra) !ank,

!ang)adesh !ank pu+)ished t*o foreign e3$hange guide)ines 7oreign E3$hange -uide )ine Ko)

I and Ko) II9 !ang)adesh +ank and I and E $ontro)s the foreign E3$hange +usiness. (he

$entra) !ank issued many $ir$u)ars regarding foreign e3$hange transa$tions and they are the

monitoring authority +y issuing uptodate instru$tion $ir$u)ars for smooth fun$tioning. Ministry

of $ommer$e issued IM 7 Import o)i$y rder and E3port o)i$y rder9 and ER.

oreign e3$hange transa$tions are regu)ated +y the fo))o*ing "$tA-uide)inesAir$u)ar et$:

• oreign E3$hange 'egu)ation "$t, 1;#<.

• Import and E3port 7ontro)9 "$t, 1;>0.

• ir$u)ar issued +y the entra) +ank.

• Import o)i$y rder and E3port o)i$y rder and ER Hpu+)ished +y the ministry of

inan$e.

• u+)i$ 8oti$es issued +y hief $ontro))er of Import and E3port.

• -uide)ines A $ir$u)ars of the +ank.

• u+)i$ations of internationa) ham+ers of ommer$e 7I9 )ike UD9>00, U', and

U''.



CHAPTER-4

CONCLUDIN PART

indin$s

Janata +ank Fimited 7J!F9 is named from the name of a *ho dedi$ated his )ife for the $ause of pea$e in

this *or)d and hereafter and served the humanity. (he prime o+%e$tive of Janata +ank Fimited is to serve

the peop)e for attainment of their e$onomi$ goa) and su$$ess in )ife here and hereafter.

I have tried to represents a $on$rete vie* of this +ank and find out the fo))o*ing ma%or $on$erns:

(ota) $apita) of the !ank is (k. ;1@ mi))ion as on 1 De$em+er 2011 +ut in 2010 C 200; it *as(k. <<#< mi))ion C >#0 mi))ion.

aid up $apita) of the !ank stood at (k. (k. ##> mi))ion on 1 De$em+er 2011 +ut it *as (k.

#2> mi))ion in the previous year.

8et profit "fter (a3 in 2011 is tk. 12;01<?;00 de$reases from tk. 20<2#0? in the year 2010.

(he num+er of +ran$hes has in$reased from ? in 2010 to @# in 2012.

(he +ank performs $orporate so$ia) responsi+i)ity *ith proper manner.

"$$ording to 'ISF, the +ank has a$hieved "" for )ong term and S(2 for short term.

(he +ank has a$hieved an a$$epta+)e p)a$e to the $ustomers and -overnment of !ang)adesh +y

$omp)ying ru)es and regu)ations.

Fa$k of attra$tive and ne* )oan produ$ts for the $ustomer.

rom the $)ients vie* introdu$er is one of the pro+)ems to open an a$$ount. it is genera) pro+)em

to a)) $ommer$ia) +ank

Fa$k of update produ$ts is a)so a dra*+a$k of the genera) +anking area of the SJI!F +ank .the

+ank provides on)y some )imited traditiona) servi$es.

J!F has introdu$ed its "(M servi$e. !ut its not so popu)ar )ike other +anks su$h as D!!F,

!'" !ank et$.

Fa$k of suffi$ient finan$ia) data and other information in J!F o*n *e+site.

Positive indin$s+

VImport earnings and earnings from remittan$e 4uite satisfa$tory )eve)s.

VJ!F have enough +ran$hes in our $ountry.



V(he !ank Introdu$e 8'! 78on 'esident !ang)adeshi9 +ran$h, *hi$h is ne* idea in !ang)adesh.

;e$ative indin$s+

(he first pro+)em of this +ank is emp)oyees are not pun$tua).

(hey have no uniform. or that reason some $ustomer find it, diffi$u)t to identify

the +ank emp)oyee. Some superior offi$ers of this +ank are not avai)a+)e sometime.

Fa$k of motivation among mid and )o*er )eve) offi$ers.

Some emp)oyees are )ess trained to hand)e te$hno)ogies. Su$h as H $omputer ,

Interknitted. Modern te$hno)ogy is hard)y used to maintain do$umentations yet they are using

registered +ased do$ument. =here $omputer )eads every sphere of )ives in$)uding foreign e3$hange dept Janata

!ank does not have e3perts in $omputer. (hough J!F has 4ua)ified emp)oyee in foreign e3$hange department, +ut +ank shou)d re$ruit some ne*

emp)oyee to run this department smooth)y. Most of the time they try to provide 4ua)ity servi$es to the kno*n person, it may )oses

genera) $ustomer. J!F $harge very )o* margin to the kno*n $)ients.

J!F a)so $harge very )o* $ommission $ompare to another +anks.

Fong term training mu$h re4uired for the foreign e3$hange offi$ers.

Fa$k of promotiona) initiatives to e3pand the foreign e3$hange +usiness.

)ecommendations+

*. Mana$ement of 5B shou(d pressuri8e emp(oyees for bein$ punctua(.• Janata !ank shou)d arrange uniform for the emp)oyees.

• Shou)d +e improving $ustomer servi$es.

• J!F shou)d take the motivationa) strategies among mid and )o*er )eve) offi$ers

to progress their a$tivities.

• (he +ank *aste enough time of their $)ients in providing servi$es as it )a$ks in e3pert$omputer operators. So J!F has to hire $omputer e3pert.

• In $ase of FA opening, !ank provides 8IF margin fa$i)ity to on)y some kno*n $)ients, +ut they

shou)d a)so provide this fa$i)ity to some sma)) +ut effi$ient $)ient.

• In $ase of payment of remittan$e, they shou)d introdu$e de+it $ard so that $ustomer

$an *ithdra* money *ithin a se$ond.



• J!F shou)d +e improving the promotiona) initiatives to e3pand the foreign

e3$hange +usiness.

• (he +ank has the provision of internship program +ut there is no organi6ed program for internship.

(he +ank $an proper)y uti)i6e the interns at minimum $ost. I +e)ieve these steps *i)) +e he)pfu)

to improve the performan$e of and the finan$ia) se$tor of !ang)adesh.

B. )ecommendations for uture Strate$ic *ctions

During my training at J!F I o+served some areas that need attention of the management )ike:

♦ Shou)d use advan$ed soft*are in $)earing

♦ (rain up the emp)oyees to *ork more effi$ient)y

♦ In$rease the num+er of emp)oyees

♦ (he +ran$h must start money e3$hange fa$i)ities

♦ !ank shou)d offer more produ$ts and servi$es

♦ E3pand the num+er of +ran$hes not on)y in ur+an area +ut a)so in rura) area

♦ (he +ran$h shou)d $ome up *ith more marketing, 'M a$tivities.

♦ (he +ran$h shou)d $ome up *ith some effe$tive S' a$tivities.

♦ (he !ank shou)d +e in$rease "(M +ooth fa$i)ities.

!ank needs to use more marketing $hanne)s to make the pu+)i$ a*are of its produ$ts and servi$es. In

the presen$e of intense $ompetition SJI!F has to rea)i6e the importan$e of marketing. Management

shou)d distri+ute *ork e4ua))y among different emp)oyees. Some of the emp)oyees are over+urdened

*hi)e some se$tions are overstaffed.

J!F needs to improve its *e+site. More information re)ating to finan$ia) performan$e of the +ank

shou)d +e avai)a+)e on the *e+site.



J!F shou)d immediate)y improve its Information (e$hno)ogy System. (he soft*are $urrent)y in use

shou)d +e made error free, as it is the need of the hour, and integrated data inter$hange shou)d +e

in$u)$ated to ena+)e top management to monitor a)) a$tivities going a+out in a)) +ran$hes through

generation of spe$ia) purpose reports.

(he top management shou)d immediate)y start thinking in terms of rotating the emp)oyees in various

departments, as this transforms *ork for$e into human $apita). If a parti$u)ar individua) keeps on

emp)oying hisAher efforts in one sphere of +anking it *ou)d not on)y $reate a sense of monotony and

+oredom, +ut a)so not he)p improving the ski)) set of emp)oyees.

!ank shou)d make a p)an to gear up its re$overy efforts on *ar footing and reorgani6e the re$overy

fun$tion of g)o+a) +ases. In addition, +ank shou)d tighten up $ontro) on e3penditure.

(o save the time of the $ustomers and other $)ients, +ank shou)d adopt $omputeri6ed system for +ook

keeping and other fi))ing systems. It *i)) in$rease the effi$ien$y of the +ank. I kno* that there are

some +ran$hes *hi$h are $omputeri6ed +ut most of the +ran$hes in various $ities of the $ountry are

not $omputeri6ed. So the +ank shou)d me$hani6e a)) its +ran$hes in the $ountry.

!ank shou)d )aun$h advertising $ampaigns throughout the year to promote the ha+its of savings in

the peop)e. !ank shou)d open more +ran$hes in the remote areas of the $ountry to get deposits and

id)e resour$es. !ank shou)d provide simi)ar fa$i)ities to a)) its +ran$hes in +ig $ities. (he standard of

servi$e and other fa$i)ities are far +etter as $ompared to sma))er $ities.

on$)usion:

rom the pra$ti$a) imp)ementation of $ustomer dea)ing pro$edures during the *ho)e period of my

pra$ti$a) orientation in Janata !ank Fimited Ga*ran !a6ar !ran$h I have rea$hed a firm and

$on$rete a $on$)usion in a very $onfident *ay. I +e)ieve that my rea)i6ation *i)) +e in harmony *ith

most of the +anking thinkers. It is 4uite evident that to +ui)d up an effe$tive and effi$ient $onsidered



as soon as possi+)e. !esides, every +ank has to survive amidst of a )arge num+er of +anks in$)uding

)o$a) and foreign. (hats *hy to keep *ith e3pe$ted profit margin of the time +eing and for the future

every +ank shou)d try heart and sou) to p)ease the $ustomers in a smart and trusty *ay. !ut 4uite

regretfu) to mention that most of our +ank fa$e de$reasing profit trend due to s*it$h over of their

present $ustomers to those foreign *ith higher $ustomers servi$e fa$i)ities. So, time)y de$ision for

introdu$ing sophisti$ated +anking instruments shou)d +e taken as ear)y as possi+)e. "fter taking

effe$tive and time defeating measures regarding effi$ient emp)oyees and instruments *i)) he)p the

)o$a) offi$e of Janata !ank Fimited, Ga*ran !a6ar !ran$h to rea$h the prin$ip)e of su$$ess *ith high

profit and produ$tivity. " +ank they shou)d +e stronger in finan$ia) side as there is too $ompetition

and +anks are gro*ing up. If Janata !ank Fimited Ga*ran !a6ar !ran$h adopts professiona)ism

*ithin the frame *ork of Shariah, they *i)) +e a+)e to earn handsome &a)a) rofit/ and higher

return to the depositors and shareho)ders. U)timate)y, pu+)i$ *i)) get more $onfiden$e on this type of

!anking.

(hree months of internee is rea))y short period of time and is not enough time to kno* a)) a+out the

fun$tion of the +ank, its a step +y step pro$ess. !y ta)king *ith my supervisor Prof. Dr. M. *bu

Misir I have )earned the +asi$ fun$tion and strategy of the +anking se$tor and a+out the +ank. &o*

they provide servi$e, ho* they fu)fi)) their $ustomer need C demand and ho* they $ompete in the

market *ith the $ompetitor.

In my intern time I have )earned theories in offi$e time and )earned pra$ti$a) things +y doing fie)d

*ork )ike "$$ount pening Se$tion, )earing Se$tion, and ash Se$tion,. (his kind of *ork

$ondu$ted for provide $ustomer servi$e.

*bbreviation

-D H -ross Domesti$ rodu$t

J!F H Janata !ank Fimited



E E3e$utive $ommittee

M"8M Management ommittee

"F "sset Fia+i)ity ommittee

!I!M H !ang)adesh Institute of !ank Management

F H Fetter of redit

I! redit Information !ureau

'M H redit 'isk Management

F'" Fending 'isk "na)ysis

ID Investment Division

DMD Deputy Managing Dire$tor

'M 'e)ationship Manager

I'M Investment 'isk Management

MD Managing Dire$tor

E H hief E3e$utive ffi$er

BIBI"7)*PHE

)eference Boo&s



)ose- Peter S. 41:::6- ,ommercia( Ban& Mana$ement- ourth @dition- Ir3in<

Mc7ra3<Hi(( ;e3 Eor&

)esearch Methodo(o$y of ,.). Kothari

*nnua( )eports

*nnua( )eport of Mercanti(e Ban& imited 00:

*nnua( )eport of Ban$(adesh Ban& 00:

"ther )eferences

Dai(y Statement of 5B

Month(y )eports

Schedu(e Ban& Statistics

Statement of *ffairs orei$n @Achan$e Manua(s

7uide(ines for orei$n @Achan$e Transaction

Practica( participation of 5B

Different Types of orms of 5B

=ebsite

333.!b(bd.com

333.ban$(adesh<ban&.or$

333.!anataban&.or$.bd !anataban&$mai(.com

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