T.T. Issue/Collection:

Telex transfer (TT) is another widely used mode for remittances of funds. In case of telex transfer the message for transfer of funds is communicated through tested telex. MTBL generally recovers from the telex charges in addition to the usual service charges.

Issuing of TT:

MTBL follows the following procedures:

 The customer deposits money with MTBL to be sent.
 The customer obtains a cash memo containing TT serial number.
 TT serial number, notifying part name is mentioned in the telex message.
 The Telex Department confirms transmission of the telex.

Accounting entries for TT:

Cash A/C  Client’s A/C -----------------------Dr.
MTBL General A/C (Dilkusha branch)---------------Cr.

Procedures for the incoming TT:

After receiving the telex, it is authenticated by test. TT Serial number is verified by the “TT in-Concern branch” register. The following entries are given in the vouchers:

MTBL General A/C (Dilkusha branch)-------Dr.
Client’s A/C-------------------------------------------Cr.

Tk. 50/- is taken as postal charge. The minimum commission is Tk. 50/- or o.15% of the amount whichever is higher.

Endorsements:

MTBL endorses US$ in passports. To endorse US Dollar, the client has to apply in the prescribed from (TM Form).

The following entries are given in this regard:
Cash or Customers’ A/C-----------------Dr.
Foreign Currency on Hand< Dollar Special> ---------Cr.


IBC/OBC:

By OBC, we mean that those cheques drawn on other banks which are not within the same clearing house. Officer gives OBC seal on this type of cheques and later sends a letter to the manager of the branch of the some Bank located in the branch on which cheque has been drawn. After collection of that bill branch advises the concerned branch in which cheques has been presented to credit the customer account through Inter Branch Credit Advice (IBCA).

In absence of the branch of the same bank, officer sends letter to manager of the bank on which the cheques is drawn. That bank will send pay order in the name of the branch. This is the procedure of OBC mechanism.

Actually OBC comes from the out side bank’s branch, or inter branches. Suppose AGRANI Bank, Jatrabari Branch sent a Cheque, which no: 012536, Tk. 5,00,000/- to Mutual Trust Bank Limited against AGRANI Bank Motijheel Corp. Branch. So this cheque could be an OBC. Now what Mutual Trust Bank Limited has to do? MTBL tries to collect this cheque through Bangladesh Bank Clearing House, and credited clients account.

OBC Collection Process:
Create a Voucher against OBC: S/D A/C   OBC Tk. 5,00,000/-    

.10% Cut off as Commission on OBC Tk. 500
15% Cut off as Vat on Others              Tk.  75
Tk. 20/- Cut off as Postage Recovery  Tk.  20
Total                                                   Tk. 595/-

In this condition MTBL got the cheque amount of Tk. 5,00,000/-, but after cut off the commission, vat and postage recovery MTBL will be credited the amount Tk. (5,00,000 – 595)= Tk. 4,99,405/- in party account.

Bangladesh Bank Circulation about OBC:

Bangladesh Bank has circulated some things about OBC. These are given below:
 If the cheque amount will be under Tk. 1,00,000/- then bank’s OBC commission will be charged at .15%.
 If the cheque amount will be above Tk. 1,00,000/- to Tk. 5,00,000/- then Bank’s OBC commission will be charged at .10%.
 If the cheque amount will be above Tk. 5,00,000/- then Bank’s OBC commission will be charged at .5%.
 Against the OBC the Government Tax will be realized on 15% on Commission Amount.
 Postage Recovery will be realized Tk. 20/- for each OBC.

Locker Service:

MTBL Dilkusha Branch is providing facility of locker service for the purpose of safeguarding the valuable property of customers. The person or organization that has any account in bank branch can enjoy this service. They keep their valuable assets in banker’s custody. Customers have right to look after with a key of their individual locker provided by bank. MTBL maintains the following types of lockers:

▫ Large locker.
▫ Medium locker.
▫ Small locker.

For enjoying this service, clients have to give charge yearly Tk.2500/-, Tk.2000/- and Tk.1500/- for large, medium and small locker respectively.