REMITTANCE Another important department in MBL is Remittances Department.

The remittances department transfers the funds from one bank to other bank and from one place to another place. In remittances department the collection take place. The MBL made payment of only open cheques on the counter and prohibits the payment of crossed cheques. MBL transfers money from one place to another by the following means: a) Pay order b) Demand drafts c) Inward collection d) Outward collection a) PAY ORDER: Pay order is an order to pay money but this payment is to be made within city. In other words it can be said that the payee and the payer should be in one city. In pay order the payment can be made in A) Cash B) Clearing C) Transfer PROCEDURE: In case of pay order first of all the customer has to fill a pay order application form in favoring section: name, account number, amount, beneficiary name, address, etc. The data is entered in already set format of pay order in computer and pay order print out is taken. An authorized person and manager operations are signed pay order. The original copy of the pay order is given to the customer and carbon copy is kept with bank for office record. b) DEMAND DRAFT An order to pay money to the payee who is residing outside the city. DD can be for a customer who may or may not have an account in the bank but the other persons account must be maintained with the bank for which the payer has demanded the DD. c) INWARD COLLECTION When the bank receives cheques of any other bank from its any branch situated in the some other city, then those have been dealt as inward collection

REMITTANCE DEPARTMENT

Functions of remittances department The functions of remittance departments are to handle with the following instruments: Pay Order Demand Draft Pay slip Telegraphic Transfer Payment of Remittances Cancellation of pay order & demand draft The remittance department deals with the transfer of money from one place to another. This department deals with the local currency transfer only. ACBL provides these services to both customers & non-customers Remittance can be made through: 1) Instrument transfer 2) Electronic transfer 3) Mail transfer

Instruments of the Remittances Departments

PAY ORDER

Pay order issued from one branch only be payable from the same branch. It is normally issued for payment in the same city. It is normally referred as banker's cheque Get the application form. Issue pay order after recovering cheques. Do necessary vouchering. Make entry in PO issue register. All pay order shall be crossed" payees account only". Charges on issue of Pay Order Amount (Rs) Charges (Rs)

Less then 100,000 50 Above 100,000 Nil

Duplicate Pay Order: Check the record to insure that payment has not been effected. Get application for issuing of duplicate PO.

 Recover charges. Issue duplicate pay order.

DEMAND DRAFT
It is an instrument on demand for which value has been received, issued by the branch of the bank drawn i.e. payable at some other place(branch) of the same bank. In case of agency arrangement- demand draft can also be issued by one branch of the bank payable to other branch of the other bank e.g. DD issued by ACBL payable by MCB. Charges on issue of Demand Draft Amount (Rs) Charges (Rs) 1 - 10,000 25 10,000 100,000 50 or .1% 100,000 - 1000,000 200 or .07% Over 1000,00 1000 or .05%

PAY SLIP

The bank for settlement of it own payment issue pay slip. No excise duty No commission