Inland remittances The term inland means transfer of

Inland remittances

• The term inland means transfer of funds from one branch to another within the country through banking instruments. • Demand drafts. • Telegraphic transfers. • Mail transfers.

Demand draft • Demand draft is a written order, drawn by one branch of a bank upon another branch of the same bank to pay a certain sum of money. • Demand draft is a negotiable instrument. • Demand draft is neither payable to bearer nor drawn on branches situated within the same city. • It is to ensured that the purchaser of the demand draft is able to at least sign his name

Parties to a draft • Purchaser • Issuing or drawing branch: which issues a draft on another branch. • Drawee branch: is one on which a draft is drawn. • Payee: is a person named in the demand draft to whom the money is to be paid.

Precautions • There should be a branch at the place where payment is desired to be made. • Full name of the payee should be mentioned • Amounts in words and figures should not differ.

Telegraphic transfers • Transfer of funds from one branch to another branch of the same bank for the payment to the beneficiary through • Telegram • Telex • Fax

Telegraphic transfers • Not negotiable and not transferable • Not to be drawn on the branch of same city. • Payable to beneficiary – By crediting account if maintained – In cash subject to proper identification – Through collecting bank for crediting beneficiary account. • Not to be effected on the application of a minor.

Parties to telegraphic transfer • The following are the parties to a telegraphic transfer. • Applicant: a person, firm, company who desires to remit funds from one place to another branch. • Remitting or drawing branch • Drawee branch. • Beneficiary branch.

Mail transfers • Transfer of funds from one branch to another branch of the same bank within or outside the city for the payment to the beneficiary through mail/ courier service is called mail transfer. • Mail transfer is not negotiable. • The funds remitted by mail transfer are not payable to the bearer/order.

Pay orders • A pay order is a written authorization for payment made in a receipt form issued & payable by the bank, to the person named & addressed therein. • Also used by the bank for making its own payments.

Features • It is issued by and drawn upon and payable by the same branch of the bank. • It is neither transferable nor negotiable & as such it is payable to the payee named therein. • Pay order cannot be issued to a minor. • Meant only for making payments in local city.

Parties to a pay order • Purchaser. • Issuing/ paying branch. • Payee.