2.1.

An Overview of Standard Bank Limited

The banking sector of Bangladesh comprises of three categories of schedule banks. These
are nationalized commercial banks (NCBs), private commercial banks (PCBs) and
foreign commercial banks (FCBs). Private commercial banks are again divided into three
categories- First generation, Second generation and Third generation. Standard bank falls
into the third generation segment and undoubtedly leads its own generation. As an intern
from business discipline with major in finance I have got the opportunity to work with
this bank and try to put my effort to make a depth study.

Standard Bank Limited is a scheduled Bank under private sector established under the
ambit of Bank Company Act, 1991 and incorporated as a public limited company under
Companies Act,1994. The Bank started commercial banking operations effective from
June 06, 1999. During this short span of time the Bank had been successful to position
itself as a progressive and dynamic financial institution in the country.

The motto of the Standard Bank Ltd. Is to explore a new horizon of innovation modern
banking creating an automated and computerized environment providing ONE STOP
service and prepare itself to face the new challenges of globalization and 21 st century .
One of the main objectives of the bank is to be a provider of high quality products and
services to attract its potential market .The bank also caters to the needs of it corporate
clients and provides a comprehensive rang of financial services to notional and
multinational companies .

2.2. History of Organization

Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May
11, 1999 under the Companies Act, 1994 and the Bank achieved satisfactory progress
from its commercial operations on June 03, 1999. SBL has introduced several new
products on credit and deposit schemes. It also goes for Corporate and Retail Banking
etc. The Bank also participated in fund Syndication with other Banks. Through all these
myriad activities SBL has created a positive impact in the Market.

2.3. Vision
The bank would serve as partner and advisor of the clientele to trade, commerce and
industry.

2.4. Mission

Our mission is to be utmost trustworthy stakeholder, careful, committed for equitable

and sustainable growth based on diversified deployment of fund/resources leading the
bank to the peak of healthy and wholesome financial institution.

2.5. Core Values of Standard Bank Ltd.

 Our shareholder: By ensuring fair return on their investment through generating

stable profit.

 Our customer: To become most caring bank by providing the most courteous
and efficient service in every area of our business.

 Our employee: By promoting the well being of the members of the staff.
  Community: Assuring our socially responSBLe corporate entity in a tangible
manner through close adherence to national policies and objective.

2.6. Objective of the bank

The Motto of the Standard Bank limited is to explore a new horizon of innovative
modern banking creating an automated and computerized environment providing one
stop service and prepare itself to face the new challenges of globalization and 21st
century. One of the main objectives of the bank is to be provider of high quality products
and service to attract its potential market. The bank also caters to the need of its corporate
clients and provides a comprehensive range of financial services to national and
multinational companies. The bank has already co-opted technological revolution in all
its spheres.

2.7. Branches of SBL

From the year 1999 to year 2010 Standard Bank Limited established 50 numbers of
branches in different districts of Bangladesh. The principal Branch located in
Metropolitan Chamber Building (Ground Floor), 122-124 Motijhel C/A, Dhaka 1000,
and Bangladesh.

2.8. Organization Offer

Standard Bank Limited is always conscious of the changing needs of customers and
strives to develop new and improved services for its valued customers. Ban offers various
deposit and lending products and services to meet all kinds of financial needs of
customers. Such as
• Maintain all types of account.
• Make investment.
 • Handle foreign exchange business.
• Intend other banking sector etc.
SBL also collect TITAS bill, WASA bill, Telephone bill and Electricity bill.

2.9. Communication Rate Between Managers, Assistant or the Work

Team

Communication rate between managers, assistant or the work team is moderately high.
Or achieving any kind of organization goal, most of the frequently communicate with
each other. They are bound to maintain frequent relationship with each other.

2.10. Daily Work Plan

Daily working hour of the organization Is 8 hours, from 10 am to 6pm, five days a week.
But sometimes it needs to work on Saturday. They are very much conscious about the
daily assignments and attendance.

2.11. Functions of SBL

The key function of the organization is as follows

• To mobilize deposits.
• To disburse investments
• To handle foreign exchange and foreign business
• Remittance: To remit money to home and abroad through T.T, D.D, Pay-order,
Travelers cheque, etc.
• Other services: e.g. Locker service, to receive different types of bills of clients to
issue Guarantees and counseling etc.
2.12. Major Division of SBL

End the whole banking system of Standard Bank Ltd. (Mirpur Branch) is divided into
three major divisions. These divisions are –
1) General Banking
2) Advance & Loan Banking
3) Foreign Exchange

GENERAL
FOREIGN
BANKING
EXCHANGE
(GB)
STANDARD
BANK LTD.
& MIRPUR
BRANCH

LOANS &
ADVANCES
 Figure: Division of SBL
Source: Office Document

1. CHAIRMAN ADVIOSOR BOARD OF DIRECTOR

2. MANAGING DIRECTOR

3. DEPUTY MANAGING DIRECTOR

4. SENIOR EXECUTIVE VICE PRESIDENT

5. EXECUTIVE VICE PRESIDENT

6. SENIOR VICE PRESIDENT

7. VICE PRESIDENT
2.12.Organgram of the Standard Bank Ltd.
8. SENIOR ASSISTANT VICE PRESIDENT
2.12.1.Serial number Based on position
9. ASSISTANT VICE PRESIDENT

10. SENIOR PRINCIPAL OFFICER

11. PRINCIPAL OFFICER

12. EXECUTIVE OFFICER

13. OFFICER

14. TRAINEE OFFICER

15. JUNIOR OFFICER

16. ASSISTANT OFFICER

17. TRAINEE ASSISTANT OFFICER

Figure 1: Organizational configuration of Standard Bank Ltd.
2.12.2.Management hierarchy of the Standard Bank Ltd.

BRANCH
MANAGER
VICE PRESIDENT
2nd OFFICER
SENIOR PRINCIPAL
OFFICER

FOREIGN EX.
INVESTMENT GENERAL BANKING
EXCHANGE
DEPARTMENT DEPATMENT
DEPARTMENT
EXECUTIVE EXECUTIVE EXECUTIVE
OFFICER OFFICER OFFICER
OFFICER OFFICER
OFFICER

JUNIOR OFFICER JUNIOR OFFICER JUNIOR OFFICER

ASSISTANT ASSISTANT
ASSISTANT
OFFICER OFFICER
OFFICER

TRAINEE ASSISTANT TRAINEE ASSISTANT TRAINEE ASSISTANT

OFFICER OFFICER OFFICER

Figure 2: Organizational configuration of ever Branch’s,

Standard Bank Ltd.
2.13.Correspondent Banking Division

The main aim of Standard bank limited is to increase its foreign exchange business and
in this connection they are doing international banking with all major banks of the
world. At present they are maintaining correspondent banking relationship with 23 major
banks of the world. These are:
The Hong Kong and Shanghai banking corporation. Citibank N.A., Standard chartered
bank, American Express bank ltd., Mashreq bank PSC.,Wcchovia bank, The bank of
Tokyo-Mitsubishi ltd.,Union De Banques Et Arabes Francaises, Danske bank
ltd.A/S,Commerz bank ,Dresdner bank, Bank Islam Malaysia Berhad,Nepal Bangladesh
bank ltd., NIB bank ltd.,Arab Bangladesh bank ltd., AB international finance limited,
Bhutan national bank,UTI bank ltd.,The bank of Nova Scotia and ICICI bank limited
Habib bank Ag Zurich, Nordea bank and Samen bank.

Standard bank limited is maintaining drawing arrangement with 1(one) exchange house
in the UK and another 1 (one) in the USA for inward foreign currency remittance. these
2(two) exchange house are remitting sufficient funds through our bank. Establishment of
some exchange house in the U.A.E. are going to execute very soon.
 CHAPTER-3

TOPIC ANALYSIS & DISCUSSION

3.1 Definition of Foreign Exchange Operation

……………. Creating a Viable Link between Export and

Import

Foreign Exchange refers to the process or mechanism by which the currency of one
country is converted into the currency of another country. Foreign exchange is the means
and methods by which rights to wealth in a country’s currency are converted into rights
to wealth in another country’s currency. The foreign exchange department of SBL of
mirpur Branch is playing an important role in enhancing import earning which aids
economic growth and, will be helpful for economic boost. On the other hand, it also helps
to meet those goods and services which are more demanding and not adequate in our
country
.
3.2 Export and Import Procedure

Modern world depends upon foreign exchange to do trade with other countries. Foreign
trade refers to the trade between different sovereign nations or different countries.
Smaller or large all the country of the world now cannot goes without the help of other
country. It can run without keeping relation with any specific country but it is not
posSBLe to exist without keeping relation with the any country of the world. No country
in the world can produce everything that she requires. So every country specializes in the
production of commodities, which she cans be producing at comparatively low cost. And
she secures other production exchange of their surplus from foreign which are in an
advantage position to produce these “other product”.

3.3 Structure of Foreign Exchange Department

Foreign Exchange Department of SBL, Mirpur Branch

Foreign exchange department of SBL, Mirpur Br. has been divided into two sections:
1. Foreign Remittance
2. L/C Operation

3.4 Important terms on Foreign Exchange Operation

Letter of Credit(L/C):

Letter of-credit can be defined as a “Credit Contract” whereby the buyer’s bank is
committed (on behalf of the buyers) to place an agreed amount of money at the seller’s
disposal under some agreed conditions. Since the agreed conditions include amongst
other things, the presentation of some specified documents, the letter of credit is called
Documentary letter of credit. The Uniform Customs and Practices for Documentary
Credit (UCPDC) published by International Chamber of Commerce (1993) revision,
publication no 600 define Documentary Credit:

Any arrangement however named or described whereby a bank (the issuing bank) acting
at the request and on the instructions of a customs (the Applicant) or on its own behalf,
 is to make a payment or to the order of a third party(the beneficiary) or is to accept
and pay bills of exchange(Drafts) drawn by the beneficiary or
 authorize another bank to effect such payment or to accept and pay such bills of
exchange (Drafts)
 Authorize another bank to negotiate against stipulated documents provide that
terms and conditions are complied with.

Parties involved in the process of Letter of Credit:

 Importer (Buyer)/Applicant
 The Issuing Bank (Opening Bank)
  The Advising Bank/Notifying Bank
 Exporter/Seller (Beneficiary)
 Confirming Bank.
 Negotiating Bank.
 The Paying/Reimbursing/Accepting/Remitting Bank.

a) Applicant:
The person/body (customer of the bank) who requests the bank (opening bank) to issue
letter of credit. As per instruction and on behalf of the applicant, bank open L/C in line
with the terms and conditions of the sales contract between the buyer and seller.

b) Opening bank/ Issuing bank:

The bank which open/issue L/C on behalf of the applicant/importer. Issuing bank’s
obligation is to make payment against presentation of documents drawn strictly as per
terms of the L/C.

c) Advising/Notifying bank:
The bank through which the L/C is advised/ forwarded to the beneficiary (exporter). The
responsibility of advising bank is to communicate the L/C to the beneficiary after
checking the authenticity of the credit. The advising bank acts only as agent of the issuing
bank without having any engagement on their part.

d) Beneficiary:
Beneficiary of the L/C is the party in whose favor the letter of credit is issued. Usually
they are the seller or exporter.

c) Confirming bank:
The bank which under instruction in the letter of credit, adds confirmation of making
payment in addition to the issuing bank. It is done at the request of the issuing bank
having arrangement with them. This confirmation constitutes a definite undertaking on
the part of confirming bank in addition to that of issuing bank.

f) Negotiating Bank:
The bank which negotiate documents and pays the amount to the beneficiary when
presented complying credit terms. If the negotiation of documents is not restricted to a
particular bank in the L/C, normally negotiating bank is the banker of the beneficiary.

g) Reimbursing/ Paying Bank:

The bank nominated in the credit by the issuing bank to make payment stipulated in the
document, complying with the reimbursing bank.

Mechanism of L/C operation:

Legends:
1. L/C opening
2. Present Document
3. Payment against Document
4. Confirming L/C
5. Submit Documents
6. Makes Payment

7. Issue L/C
8. Forward Document
9. Makes Payment
3.5 Import Section
Import section deals with L/C opening and post import financing i.e. LIM & LTR. Now
the procedure from opening L/C to SBL against L/C is given below:

Application for opening L/C:

At first, an importer will request banker to open L/C along with the following documents.
 An application
 Indent or Proforma Invoice
 Import Registration Certificate (IRC)
 Taxpayer’s Identification Number (TIN)
 Insurance cover note with money receipt
 A bank account in SBL at Mirpur Br.
 Membership of chamber of commerce


Indent or Proforma Invoice:

Indent or Proforma Invoice is the sale contract between seller and buyer in import—
export business. There is slight difference between Indent and Proforma Invoice. The sale
contract which is direct correspondence between importer and exporter is called Proforma
Invoice. There is no intermediary between them. On the other hand, there may be an agent of
exporter in importer’s country. In this regard, if the sale contract is occurred between the agent
of exporter and importer then it is called Indent.

Delivered forms by Banker to Imporer:

After scrutinizing above-mentioned documents carefully, officer delivers the following
forms to be up by importer and banker should cheek:
 Whether the goods to be imported is permisSBLe or not.
 Whether the goods to be imported is demanding or not.

The Forms are:
L/C Application Form:
L/C Application Form is a sort of an agreement between customer and bank on the basis
of which letter of credit is opened. SBL at Mirpur Branch provides a printed form for
opening of L/C to the importer. A special adhesive stamp of value Tk. 150 is affixed on
the form in accordance with stamp act in force. While opening the L/C, the stamp is
cancelled. Usually the importer expresses his decision to open the L/C quoting the
amount of margin in percentage. Usually the importer gives the following information—

 Full name and address of the importer

 Full name and address of the beneficiary
 Draft amount
 Availability of the credit by sight payment/acceptance/negotiation/deferred
payment
 Time bar within which the documents should be presented
 Sales type (CIF/FOB/C&F)
 Brief specification of commodities, price, quantity, indent no. etc.
 Country of origin
 Bangladesh Bank registration no.
 Import License/LCAF no.
 IRC no.
 Account no.
 Documents no.
 Insurance Cover Note Policy no, date, amount
 Name and address of Insurance Company
 Whether the partial shipment is allowed or not
 Whether the transshipment is allowed or not
 Last date of shipment
 Last date of negotiation
  Other terms and conditions (if any)
 Whether the confirmation of the credit is requested by the beneficiary or not.
 The L/C application must be completed/filled in properly and signed by the
authorized person of the importer before it is submitted to the issuing bank.

L/C Authorization Form (LCAF)

The Letter of Credit Authorization Form (LCAF) is the form prescribed for the
authorization of opening letter of credit/payment against import and used in lieu of
import license. The authorized dealers are empowered to issue LCA Forms to the
importers as per basis of licensing of the Import Policy Order in force to allow import
into Bangladesh. If foreign exchange is intended to be bought from the Bangladesh Bank
against an LCAF, it has to be registered with Bangladesh Bank’s Registration Unit
located in the concerned area office of the CCI&E. The LCA Forms available with
authorized dealers are issued in set of five (05) copies each. First Copy is exchange
control copy which is used for opening of LC and effecting remittance. Second Copy is
the custom purpose copy, which is used for clearance of imported goods from custom
authority. Triplicate and Quadruplicate Copy of LCAF are to be sent to concerned area of
CCI&E office by authorized dealer/Registration Unit of Bangladesh Bank. Quintuplicate
Copy is kept as office copy by authorized dealer/Registration Unit. The Letter of Credit
Authorization Form (LCAF) contains the followings
 Name arid address of the importer
 IRC no. and year of renewal
 Amount of L/C applied for (both in figure and in word)
 Description of item(s) to be imported
 ITC Number/HS Code No.
 Signature of the importer with seal
 List of goods to be imported.
Import Permit Form (IMP).
 L/C authorization form no
 Date
 Value in taka
 Registration of LCAF
 Quantity of goods
 Invoice value
 Country of origin
 Port of shipment
 Name of the steamer
 Indentor’s address

PREPARATION OF L/C BY BANKER:

Bank’s officer prepares L/C when above mentioned forms are to be submitted by
customer or importer. Before preparing L/C SBL officer scrutinizes the application in the
following manner.
I. The terms and conditions of the L/C must be complied with UCPDC 500 and
Exchange Control & Import Trade Regulation.
2. Eligibility of the goods to be imported.
3. The L/C must not be opened in favor of the importer.
4. Radioactivity report in case of food item.

The L/C Confirming process:

FORWARDING DOCUMENTORY CREDIT BY ADVISING OR CONFIRMING BANK:

There are usually two banks involved in a documentary credit operation. The issuing
bank and the advising bank.It is usually a bank in the seller’s country. The issuing bank
asks another bank to advise or confirm the credit.

SUBMISSION OF NECESSARY DOCUMENTS BY EXPORTER TO THE

NEGOTIATING BANK:

As soon as the seller/exporter receives the credit and is satisfied that he can meet its terms
and conditions, he is in position to load the goods and dispatch them The seller then
sends the documents evidencing the shipment to the bank.
Exporter will submit those documents in accordance with the terms and conditions as
mentioned in L/C. Generally the documents observed by me in the Foreign Exchange
Department are:

 Bill of exchange
 Commercial invoice
 Bill of lading
 Certificate of origin
 Packing list
 Clean report of finding (CRF)
 Weight list
 Insurance cover note
 Pre-shipment certificate
Some inevitable notions involved in foreign exchange:
Bill of exchange:
According to the section 05, Negotiable Instruments (NI) Act- 1881. A “bill of exchange
is an instrument in writing containing an unconditional order signed by the maker,
directing a certain person to pay” [on demand or at fixed or determinable future time] a
certain sum of money only to or to the order of a certain person or to the bearer of the
instrument.
It may be either at sight or certain day sight. At sight means making payment whenever
documents will reach in the issuing bank.
Commercial invoice issued by exporter is the accounting document by which the seller
charges the goods to buyer.

Bill of lading:
A bill of lading is a document usually stipulated in a credit when exporter dispatches the
goods. It is an evidence of a contract of carriage, is a receipt for the goods and is a
document of title to goods. It also constitutes a document that is or may be needed to
support au insurance claim.

Clean Report of Findings

This certificate is provided by the Pre Shipment Inspection (PSI) Concerns. The entire
world has been brought under four pre shipment inspection concerns based on different
territory. These are as follows:
 Societe General De Survelliance
  Cotecna(Licence cancel in Bangladesh)
 Bivac International
 Intertek

THE DOCUMENTS SENT TO THE ISSUING BANK THROUGH THE NEGOTIATING

BANK:
The negotiating bank carefully checks the documents provided by the exporter against the
credit and if the documents meet all the requirement of the credit, the bank will pay,
accept.or negotiate in accordance with the terms arid conditions of the credit. Then the
batik sends the documents to the L/C opening bank:

SENDING L/C DOCUMENTS:

MAKING THF PAYMENT OF FOREIGN BILL THROUGH THE REIMBURSING BANK:

The L/C issuing bank getting the documents checks immediately and if they are in order
and meet the credit requirements; it will arrange to make payment against L/C through
reimbursement batik and will send the importer the document arrival notice.

Lodgment & Retirement of shipping documents:

After scrutinizing the import negotiating document, if no discrepancy are found then it is
treated to be accepted after the end of seven banking day following the day of receipt of
the document under “Article 1(b) of UCPDC —600”. If any discrepancy is found then
the banker informs it to the importers that whether he accept the bills with discrepancies
or not. If the importer does not accept, the banker (SBL) informs it to the negotiating
bank within seven banking days from the date of receipt of the documents, otherwise it is
treated to be accepted arid the opening batik (SBL) must bound to pay against the bill and
no complain against the bill will be accepted more than 4 banking days following the date
of receipt of the documents under article no. K1 (d) & article no. 14 (c) of the UCPDC-
600.

\
POST-IMPORT FINANCING:
If there is no available in cash in importer’s hand, lie can request the batik to grant loan
against the documents for the purpose of post import finance. There are two following
forms of post import finance available in SBL, Mirpur Br.

o LIM (Loan against imported merchandise).

o LTR (Loan against trust receipt).

3.6 Export Section

SBL is running exciting as well lively export to deliver the surplus product to other
country and thereby earns huge amount of foreign currency. Payment for goods exported
from Bangladesh should be received through an authorized dealer in freely convertible
foreign currency or in Bangladesh Taka from a Non- Resident Account.

Parties to Export Transactions:

(a)L/C Issuing Batik
(b)Importer
(c)L/C Advising Batik
(d) Exporter
(e) Confirming Batik (If any)
(f) Negotiating Batik
(g) The paying/Reimbursing Bank

Export L/C:

Export L/Cs are issued by a foreign bank favoring Bangladeshi exports through out banks
having correspondent relationship with them.

Services provided by SBL Mirpur Branch against Export L/C:

A) Advising of Export L/C:

The advising bank getting the import L/C sent by the issuing hank located abroad will
advise the L/C to the beneficiary without any engagement or responSBLy’ on their part.
It will see the following only:
a) Authenticity of L/C (Test agreed in case of Telex L/C arid signature verified in
case air mail L/C)
b) Merchandise specified in the L/C is permisSBLe and clauses incorporated in
the L/C are not against country’s regulations.

B) Add Confirmation of Export L/C:

Bank may add additional confirmation to export L/C where there is specific instruction
from the L/C issuing batik to do so. Additional confirmation of L/C gives the seller a
double assurance of payment. Batik’s requirement of adding confirmation:

I. Issuing Bank should be a reputed bank.

II. Credit Line/Arrangement with the L/C issuing bank.
III. L/C clause are to be acceptable to confirming bank
IV. Approvals from the competent authority for adding confirmation of export L/C.
V. Confirmation charges are to be recovered as per rules.

C) Negotiating of Export L/C:

Documents/papers to be submitted by exporter to bank for negotiation/collection against
export L/C. The exporter submit the documents to bank as per requirement of bank. List
of export documents is as follows:

 Export L/C
 Exp Form
  Bill of Exchange
 Invoice
 Bill of Lading
 Packing List
 Certificate of Origin
 Inspection Certificate
 Insurance Document
 Weight List
 Any other documents as per L/C

Collection Documents:
Export documents not covered by and L/C documents not drawn in terms at the credit are
accepted on collection basis with the shipper authority at their documents are forwarded
through foreign correspondents to the drawee for payment or acceptance. After
realization of the bills on collection, exporter is paid appropriate rate after adjustment of
liabilities on his account (if any).

Export Financing:
Financing of export credits is made in two stages:
i) Pre-shipment stage.
ii) Post-shipment stage

Packing Credit: (Pre-shipment financing)

Packing credit is a short-term advance granted by a bank to an exporter against valid
export L/C contract for the purpose of purchase of materials or finished goods or
manufacturing, processing, packing, transporting up to ware house/port of shipment etc
of exportable for export.
Back-to-Back L/C (Pre-shipment financing):
Back-to-back L/C means one credit backs another credit. It is new credit in favor of
another beneficiary. Sometimes beneficiary/seller of a credit himself is unable to supply
goods specified in the L/C and required to purchase from another supplier by opening
second credit.

Payment of Import Bills:

Payment of the import bills is at maturity from the relative export proceeds repatriated.
The required foreign exchange for payment of import bills is kept in a separate account,
Out of repatriate proceeds of relative export. party-wise and export L/C- wise funds are
kept in FBPAR
(Foreign Bills Awaiting Remittance) account from export proceeds for payment of bills at
maturity.

OTHERS:

 Loro Account:
Loro account means “their account with you”. Account maintained by third party is
known as Loro Account. This account may be either in foreign currency or home
currency.

 Nostro Account:
Nostro account means “Our account with you”. The account that a home bank maintains
with a foreign bank is known as Nostro account. For example, SBL Bank’s US Dollar
account maintained with City Bank N/A New York, USA is NOSTRO Account of a SBL
Bank.

 Vostro Account:
Vostro account means “your account with us”. The account maintained by a foreign bank
is known as Vostro account. We can term nostro account when referred to its account
holder (foreign bank) by home bank as vostro account. For example, State Bank of
India’s taka account maintained with Standard bank is a vostro account of SBL Bank.

4.7 Foreign Remittance Section

‘Foreign remittance’ means purchase and sale of freely convertible foreign currencies as
admisSBLe under Exchange Control Regulations of the country. Purchase of foreign
currencies constitutes inward foreign remittance and sale of foreign currencies constitutes
outward foreign remittance.

Personal observations:

I have observed the following things:

Inward Foreign Remittance:

Inward remittance covers purchase of foreign currency in the form of foreign T.T., D.D.,
bills, T.C. etc. sent from abroad favoring a beneficiary in Bangladesh. Purchase of
foreign exchange is to be reported to Exchange Control Department of’ Bangladeshi
Bank.

Outward Foreign Remittance:

Outward remittence covers sales of foreign currency through issuing foreign TT,Drafts,
Travelers Check etc. as well as sell of foreign exchange under L/C and against import
bills retired. Sale of foreign exchange is reported to Exchange Control Department of
Bangladesh Bank.

We see that there arc two types of Foreign Remittance:

a. Foreign Inward Remittance.
b. Foreign Outward Remittance.

The Foreign Remittance department of SBL at Mirpur branch is equipped with a

number of foreign remittance facilities:

a) Issuance of Foreign Demand Draft (F.D.D)

b) Issuance of Travelers Cheques (T.C)
c) Endorsement of US$ in Passport

Foreign Demand Draft (FDD):

SBL accepts the charges for TOEFL, SAT, GMAT etc. through Foreign Demand Draft.
SBL opens Student Files to issue Foreign Demand Draft following the permission of
Bangladesh Bank. SBL at Mirpur branch has more than 200 Student Files. Before
issuance of FDD, SBL asks the students to fill up the TM form which contains the
following particulars:

a) Name of the student

b) Full address of the student
c) Amount of FDD in Foreign Currency
d) Purpose of Remittance

e) Address of the institution to which the FDD will be favored

f) Country receiving payment

g) Passport no. of the student with date of issue

 h) Signature of the student

3.8 Others

ATM Services

SBL along with other seven banks has introduced a new horizon in the banking through
ATM services. The debit card issued by Standard bank along with other seven banks
holds the following classic as well as vivid features:

 Reliability
 Safety
 Security
 Utility bill payment
 Affordable yearly charge

Debit Card

 24 hour round the clock service

 Maximum withdrawal Taka 20000 per card per day
 Minimum withdrawal per transaction Taka 1000
 Maximum withdrawal per transaction Taka 5000
 Utility bills payment

SMS/Push Pull Service

 Balance inquiry
 Cheque book request
 FC rate information
 Cheque stop payment information
 Statement request by courier/post
 Statement request by e-mail
 Last three transaction statement
 Help inquiry
 PIN change

3.9 PRESENT OPERATIONAL STRUCTURE OF EXPORT SECTION

3.10 ORGANIZATIONAL STRUCTURE

OF IMPORT SECTION