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.