Inland remittances

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

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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

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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Parties to a pay order

• Purchaser.
• Issuing/ paying branch.
• Payee.