Complete banking Notes

            

             Complete Banking Notes 

 Q10) What are the Methods of Foreign Remittance / Tools.

Ans. The following methods of foreign remittance are given below.

1. Bank draft.

2. Telegraphic transfer.

3. Bill of exchange.

4. Postal Order.

 

1. Bank draft.

A draft is a cheque drawn by one branch of a bank upon another situated at any other place required to pay a fixed / certain amount of money to a specified person or by his order. A bank draft may either by inland or foreign. Drafts are issued by bankers after receiving written and signed applications. The person is required to remit the required amount of money along with its commission. The banker hands over the draft to the depositors and sends a credit advice to the branch upon which the draft is drawn.

2. Telegraphic transfer.

A telegraphic transfer (TT) is an electronic method of transferring funds utilized primarily for overseas wire transactions. These transfers are used most commonly in reference to Clearing House Automated Payment System (CHAPS) transfers in the U.K. banking system. Telegraphic Transfers are also known as Telex Transfers

3. Bill of exchange.

A bill of exchange is a written acknowledgment of a debt. It is written by the credit and accepted by the debtor. Section 5 of the Act define a bill of exchange as ‘’An instrument in writing containing an unconditional order, signed by the makers directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.

 

4. Postal Order.

Postal order is designed to fulfil requirements for small remittances at nominal commission. This traditional postal service facilitates prospective students and would be employees to request prospectus, application forms and other relevant information.

Q10)  Describe methods used in E-Banking.

 

Ans. The methods or tools used in E-Banking are following:

(1)Online Banking:Online banking is an important method of e-banking. In online banking the customer can deposit and withdraw money through internet.

(2) Credit Cards:In e-banking the banks issue credit cards to their customers. These credit cards have a magnetic strip and a magnetic chip. The credit cards holder can make immediate payment of goods purchased without using cash. 

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