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Module II

Remittances DD,Pay Order, Mail


Transfer, SWIFT, Travelers Cheques

REMITTANCE

Demand Draft
Telegraphic Transfer
Mail Transfer
SWIFT
Others

Demand Draft
It is a payment order in writing issued by an
issuing bank to a payee bank to pay on
demand the sum stated in the draft and to the
order of the person specified on the draft.
A local draft in India is drawn in Indian
Currency.
A foreign draft is usually drawn in a
foreign CURRENCY on an overseas branch or
foreign correspondent bank.

DEMAND DRAFT
A Demand Draft or bank draft is a cheque drawn by a bank
on its Head Office, on a branch or on another bank for
payment outside the local area, either domestically or
abroad.
Features and Benefits:
Transferring funds within and outside the country.
If funds are to be sent abroad, the draft is drawn on a bank
in a foreign country in the appropriate CURRENCY.
Demand Draft is paid for by the customer at the time of
issue.
The customer sends the draft to the payee who presents it
at the drawee bank for payment.
Types of Demand Draft:Local Demand Draft , Foreign
Demand Draft (foreign currency)

TELEGRAPHIC TRANSFER REMITTANCE


Wire your MONEY in a safe and quick mode of transfer
to anyone and anywhere around the world.
Also known as telephonic transfer
Where the beneficiary requires the money urgently, it
is possible to request the bank to effect the payment
by using this instrument.
The remitting bank will instruct its correspondent bank
(branch) to make the payment.
It may take a couple of days to be transferred.
Based in overseas: within 5 days
Based on local: within same day

STEP 1
REMITER :Completes application to request his
bank to remit the required payment REMITTING
BANK IN MALAYSIA
STEP 2 Instruct by telex, telephone or SWIFT to
settle payment
STEP 3 BENEFICIARY /CORRESPONDANT BANK IN
PLACE OF RECEIPT Notifies beneficiary of the
remittance and to collect payment
STEP 4 Notifies beneficiary of the remittance

MAIL TRANSFER
Similar to TT, but transaction is done by mail.
When you are too busy, you may request the
bank to remit the payment on your behalf.
You have to fill in the full name, address and
telephone number of the beneficiary.
The bank will write to its correspondent bank/
branch to make the payment

STEP 1 CUSTOMER REMITTER


Applies to the bank, furnishing the relevant details
REMITTING BANK
STEP 2 Notifies beneficiary of the remittance Writes
with the necessary details and authorises to pay
the beneficiary
STEP 3 BENEFICIARY Contacts the beneficiary to
collect payment
STEP 4 Notifies Beneficiery of remittance

STANDING INSTRUCTION
Also known as Standing Order
Appropriate when a person has to make
periodic payment i.e insurance premium,
monthly installment of car/house and so on.
It is possible for the periodically payment to
be made by the issuing standing order from
the bank

TRAVELERS CHEQUE
Travelers cheques are cheque issued by financial institutions such
as American Express, THOMAS COOK, Barclay Bank etc. to facilitate
travel arrangements.
They are issued in various currencies, likes US dollars, sterling
pound, Japanese Yen, Hong Kong dollars, Singapore dollars and in
various denominations.
Travelers cheques are easily obtainable from the banks by anyone
who wishes to travel abroad.
The issuer guarantees replacement if the travelers cheques are
reported lost or stolen.
They are convenient & safer means as a traveler does not have to
bother carrying large sums of foreign currencies each time he/she
has to travel abroad either for pleasure or for business

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