Following are some of the services offered by a Bank:
Remittance Business
A Bank other than accepting deposits and lending money, also carry out transfer of money (both domestic and foreign) on behalf of their customer from one place to another. This act of transferring money from one place to another is known as remittance business. For the purpose of transferring money banks issue Demand Drafts (DD), banker’s Cheques, money Orders etc.
The Banks charge a pre-decided sum known as commission or service charge in return of the services rendered. The service charges differ from bank to bank. This also differs depending upon the mode of transfer, faster the mode of transfer, higher the charges. Banks also offer Telegraphic Transfer or Telex Transfer, often abbreviated to TT, which is an electronic means of transferring funds overseas. A transfer charge is collected while sending money.
Electronic Clearing House
ESC is an electronic mode of fund transfer from one bank account to another bank account using the services of clearing house. This mode of remittances is used for bulk transfers from one account to many accounts and vice- versa. This facility can be used for making payments like distribution of dividend, interest, salary, pension etc. or for collection of amounts for such as payments to utility companies like electricity, telephone, water charges or for loan installment of financial institutions/ banks or regular investment person.
Mail Transfers/Mail Orders
Mail Transfer is a mode used when money is transferred from the applicant account to another account (can be own account i.e., accounts at two different centers). This mode of transfer requires the applicant to fill an application form similar to that of DD, sign a charge slip or give a cheque for the amount to be transferred plus exchange and collect a receipt. Once the formalities are complete, the bank on its own sends an order to its branch at the other center to deposit the said amount in the account number designated by the applicant.
