Ans. The paying bank must observe following procedure while making payment:   i). Verified the signature to see that it is in order (Amount, name of beneficiary and remitters particulars).

ii). Verifies the signature.

iii). Verifies the test number (if any).

iv). Convert the foreign currency in Taka (where payment has to be made in BDT) at the prevailing rate.

v). To obtain C Form if the remittance is equivalent to USD. 2,000 or above. (To state clearly purpose of the remittance but not required for Bangladeshi nationals working abroad)

vi). In case of big amount, the paying branch before effecting payment may take confirmation from the issuing bank.

vii). To prepare FET schedule & send first five copies with voucher of Int’l Division.

 

What is the procedure for payment of Travelers cheque?

 

Ans. Travelers cheque may be paid at the counter of the bank on presentation obtaining signature on the T.C. after verifying the signature of the holder with the signature already on the T.C. The payment willl be effected in local currency at the prevailing conversion rate. The T.C. may also can be deposited in foreign currency account.   Travelers cheque is bought & sold by the banks with which arrangements have been made by the issuing banks.

T.C. s are being paid at the T.C. clean buying rate. The Travelers cheque bought by the bank have to be sent to their foreign correspondents with the instruction to credit the proceeds on collection to their NOSTRO account with them.

 

What are the procedure of payment of foreign currency notes?

 

Ans. Authorized branches of the bank are to make payment of Foreign Currency notes in equivalent Taka currency at the prevailing rate (T. T. clean buying rate).   The Currency notes are normally disposed in the following ways:   i). By selling them to Travelers abroad. In this case, endorsement has to be made in the passport of the Travelers.  

ii). By sending them to foreign correspondent agent for depositing of Banks NOSTRO account. But in this particular case, approval of Bangladesh Bank is required & customs clearance to be obtained.  

iii). By selling them to another Authorized Dealers (FET Schedule is not required while transacting in each foreign currency).

 

When Form FMJ is required ?

Ans.  Incoming passengers may bring in any amount of foreign exchange with them but declaration on form FMJ beyond USD. 5,000 is needed at the time of arrival. No declaration is required for amount up to USD. 5,000. For non residents the entire amount brought in with declaration or up to  USD. 5,000.00 brought in without declaration may be freely taken out at the time of departure. Up to USD. 5,000.00 brought in without declaration may also be retained and taken out freely by a person ordinarily resident in Bangladesh.

 

What is the procedure for cancellation of inward foreign remittance?

Ans. If an inward remittance already reported to Bangladesh Bank is subsequently cancelled either in full or in part because of non availability of beneficiary or for other reason, the Authorized Dealers must report cancellation of the inward remittance to Bangladesh bank as an outward remittance on TM Form.  

 

Write short notes on “Wage Earners Scheme”?

Ans. With a view to providing an incentives to overseas Bangladeshi nationals to transfer their savings to Bangladeshi through official channel, Government introduced a scheme in the year 1973 known as Wage Earners Scheme” which was enlarged in the later part of 1974. The idea behind the scheme was to create impetus so that Bangladesh nationals/origin earning abroad find it lucrative to remit their savings to Bangladesh under the scheme. Wage Earners Scheme is an exchange control technique which permits earners abroad or their nominees to derive higher benefit than the normal foreign exchange earnings.  

 

Write down the checking points of outward remittance?

Ans. i). Application for foreign currency draft or remittance by means of T.T.   ii). Demand note/invoice where Bangladesh Bank permission is not required.   iii). “T.M. Form” duly filled in and signed by the applicant.  

iv). Permission from Bangladesh Bank for remitting foreign currency exceeding normal quota as per standing circular of Bangladesh Bank.  

v). Validity of permission must be seen if approved by foreign exchange policy department of Bangladesh Bank.

 

In which cases prior permission of Bangladesh Bank is not required by the AD’S?

Ans. Prior permission of Bangladesh Bank is not required on the following:   a). Family Remittance facility.

b). Other private Remittance.

c). Commercial Remittance:   * Payment of rent on hiring foreign ship/Aircraft by local Branch/Agent. * Appointment of agent by Bangladeshi firm. * Advertisement in foreign News Paper by Bangladeshi firm.

 

What are the amount of existing approved Travel Quota?

Ans. Travel Quota per year:  

i). SAARC countries: By Road = USD.500/= & By Air = USD. 1,000/=

ii). Other than SAARC countries: USD. 3,000/=

iii). Minor will get half of the above mentioned amount.

iv). Upper ceiling of cash currency = USD. 1,500/=