E- banking is very popular and has become a necessity in this modern century. E-banking or e-banking refers to banking transactions are done using the computer. Anyone with a computer and a browser to the website of the bank and the bank’s services.
E-banking has advantages for banks and their customers. It is beneficial for the customers in the following ways:
* The customer has 24 hour service 365 days.
* The customer can collect from anywhere.
* Customer feels safe because he / she does not need to / to carry money with him or her.
It is advantageous for the bank as follows:
* The Bank has the goodwill value that customers are satisfied with the fast transactions.
* The banking network is not restricted, as it is connected to any branch of the bank.
* Bank pressure decreases.
Some forms of electronic banking are:
* System Electronic Funds Transfer (EFT)
* Automated Teller Machine (ATM)
* credit card
* Core Banking Solution (CBS).
The benefits of E-banking
-You do not have to wait in line.
-No bank hours you plan your day.
-You can look at your balance as long as you want, not just when you get a statement.
- Internet banking allows you to watch your money, if you want every day.
- you never know what happened, your bank account.
- It is also helpful to watch you collect the amount of interest savings and investments, or what kind of service fee.
- View balances: Checking your balance doesn’t require much work. You simply select Account balances and take a look at your balance and past transactions. If you have more than one account, you can also do transfers between accounts.
- Pay bills: To pay your bills online, you just need to add to your account the names of the companies you wish to pay bills to. In the Pay Bills section, select Add payees, search for the name of the company and fill in the account number for each company. You can also sign up for the E-bills service that sends you a bill by e-mail instead of a printed one by regular mail.
- you can Transfer funds: When you select Transfer Funds, you’ll be asked where to transfer the money to and from, when, and the amount
- Set up recurring bill payments or transfers: If you make a regular payment every month, it might be convenient to set up an automatic withdrawal from your account.
There are some hidden benefits. As a young bank customers, you have just started to learn how to manage your money, watch your consumption patterns.
Regions Bank are social and financial companies as the largest bank in the 22 American line. The Bank makes its best features for the convenience of customers. Now provides easy banking regions online banking name. With this service you can manage and edit your account features via the Internet. You do not need to go to the stores, you can sit at home.
For Access Regions Online Banking Login Page, Visit This Link http://www.ibankinginfo.com/regions-online-banking/
Disadvantages of Money
Money is not an unmixed blessing. Total dependence or misuse of money may lead to undesirable and harmful results. In the words of Robertson,” Money, which is a source of so money blessings to mankind, becomes also, unless we can control it, a source of peril and confusion” The following are the disadvantages of money:
1. Instability: A great disadvantages of money is that its value does not remain constant which creates instability in the economy.Too much of money reduces its value and causes inflation( i.e. rise in price level) and too little of money raises its value and results in deflation( i.e. fall in price level). Inflation distorts the pattern of distribution in favour of the rich; thus, it makes the rich richer and poor poorer. Deflation, on the other hand, results in unemployment and hardships to the working class.
Difference between Central Bank and Commercial Bank
There are certain basic differences between Central Bank and Commercial Bank. These are mentioned below:
A)The Central Bank is the apex monetary institution which has been specially empowered to exercise control over the banking system of a country.The Commercial Bank, on the contrary, is a constituent unit of the banking system.
B) The Central Bank does not operate with profit motive. The primary aim of the Central Bank is to achieve the objectives of the economic policy of the government and maximizes the public welfare through monetary measures. The Commercial Banks, on the other hand, have profit earning as their primary objective.
C) The Central Bank is generally a state-owned institution, while the commercial banks are normally privately owned institutions.
D) The Central Bank does not deal directly with the public. The commercial banks, on the contrary, directly deals with the public.
E) The Central Bank does not complete with the commercial banks. Rather it helps them by acting as the lender of the last resort.
F) The Central Bank has the monopoly of note-issue, whereas the commercial banks do not enjoy such right.
G) The Central Bank is the custodian of the foreign exchange reserves of the country. The commercial banks are only the dealers in foreign exchange.
H) The Central Bank acts as the banker to the government, the commercial banks act as bankers to the general public.
I) The Central Bank acts as the bankers‘ bank:
a) The Commercial Banks are required to keep a certain proportion of their reserves with The Central Bank ;
b) The Central Bank helps them at the time of emergency; and
c) The Central Bank acts as the clearing house for the commercial banks. But, the commercial banks perform no such function.
What is International Trade
Trade is the voluntary exchange of goods, services, assets, or money between one person or organization and another. Because it is voluntary, both parties to the transaction must believe they will gain from the exchange, or else they would not complete it. International trade is trade between residents of two countries + Read more
L/C (LETTER OF CREDIT)
L /C is an undertaking given by a Bank on behalf of its customer to pay a certain sum of money to a certain person ( Beneficiary ) on the fulfillment of certain terms and conditions as laid down in the letter of credit. Or-It is instrument issued by a Bank undertaking the payment on the fulfillment of certain terms and conditions as laid down in that letter of credit addressed to a beneficiary. + Read more
Features of a Letter of Credit (L/C)
1. Issuing Agency: A letter of credit issued by a commercial bank. 2. Parties: It has three parties, such as Importer, Exporter, and Bank. 3. Promise: This is a promise of a bank on behalf of his client or importer to Exporter. + Read more
How Many Parties are involved in Letter of Credit (L/C)
There are mainly 6(six) parties involved in a letter of credit which may be summed up as under:
a) Opener: The applicant of L/C or the Importer / Buyer / L/C applicant.
b) Opening Bank: The Bank opening the L/C i.e. the importer’s Bank / Buyer’s Bank.
c) Advising / Notifying Bank: The bank advising the credit to the beneficiary.
DEFINITION OF GUARANTEE
A guarantee is promise made by the person/organization (or guarantor) to the Banker that he will pay the present or future debt in case of default by the principal debtor. So the guarantor is undertaking to repay the debt in case it is not the principal debtor. We should know who is principal debtor? The person in respect of whose default the guarantee is given is called the “Principal Debtor” and the person to whom the guarantee is given is called the “ Creditor (beneficiary)”.
The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000 by introducing two new rules (“Delivered at Terminal”, DAT; “Delivered at Place”, DAP) that replace four rules of the prior version (“Delivered at Frontier”, DAF; “Delivered Ex Ship”, DES; “Delivered Ex Quay”, DEQ; “Delivered Duty Unpaid”, DDU).In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules applies regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation over water.
INVOICE(SELLER’S BILL )
What is Invoice ( Seller’s Bill )
The invoice is the list of articles containing their particulars and prices. It is also book-keeping instruments for the importer.
i. The description of the good / Merchandise in invoice should corresponds with to that given in the L/C.
ii. The invoice should be signed by the beneficiary or by the assignee and it should be prepared strictly as per credit terms and condition of L/C be incorporated in the LC.
IRC and ERC
Required papers / documents to obtain Import Registration Certificate (IRC)
Import Registration Certificate (IRC) and Export Registration Certificate (ERC) are issued by the office of chief controller of Import and Exports (CCI & E) of the government. Intending Imports and Exporters are to submit applications to CCI & E for registration along with required papers / documents.
Required papers / documents to obtain IRC
How to Export
Steps to Export
Procedure of Export from Exporter side:
1) To open an account with a Bank.
2) To be collect ERC (Export Registration Certificate) from CCI & E.
3) To collect TIN from Bangladesh Revenue Boand.
4) To collect Export L/C / Transferable Export L/C.
NOSTRO A/C-VOSTRO A/C & LORO A/C
Definition- Nostro A/C, VostroA/C, Loro A/C
The account which is maintained in abroad for settlement of receipts and payment regarding foreign exchange transactions is called Nostro Accoount. In brief, our account with them is called Nosrto Account.
Uniform Customs and Practice for Documentary Credits
ARTICLE 1 Application of UCP
The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication No. 600 (“UCP”) are rules that apply to any documentary credit (“credit”) (including to the extent to which they may be applicable, any standby letter of credit) when the text of the credit expressly indicates that it is subject to this rules. They are binding on all parties thereto unless expressly modified or excluded by the credit.
URR 725 UNIFORM RULES FOR BANK-TO-BANK REIMBURSEMENTS
URR PPROVED ON 15-16.04.2008. IN FORCE SINCE 01/10/2008
A. GENERAL PROVISIONS AND DEFINITIONS
Application of URR
The Uniform Rules for Bank-to-Bank Reimbursements under Documentary
Credits (“rules”), ICC Publication No. 725, shall apply to any bank-to-bank
reimbursement when the text of the reimbursement authorization expressly
indicates that it is subject to these rules.
The Balance of Payment (BOP) Accounting Systems
The Balance of Payment (BOP) Accounting Systems
The Balance of Payment (BOP) Accounting Systems (U.S.BOP,1993 (in billions of dollars)
Export Development Fund
The Export Development Fund is expected to contribute to a sustained export drive and long-term development of Bangladesh Exports by assuring a continued availability of Foreign Exchange to meet the import requirements of particularly new exporters, exporters diversifying into higher value exports & new markets.
BACK TO BACK L/C
BACK TO BACK L/C is a which is backed by Export L/C or Master L/C.
1. Ready-made garment industries and specialized Textile units have been allowed the facility of importing fabrics and other materials needed for manufacture of garments/ specialized textiles, free of duty under bonded warehouse license system