Business, industry and the members of public are in frequent need of remitting fund from one place to another for various purposes. Banks serve as the best medium for such remittance since they have their branches throughout the country and even abroad. Such facility is available to the customers of a bank as well as non-customers. In fact his is the third major the first two being deposit and advances - area of operation of a bank.
Remittance of funds through banks eliminates the hazards in trasportation of cash from one place to another for settling trade and private dues. On deposit of requisite funds and payment of the reqired charges, a bank undertake to make the remitted amount available to a particular person or his order in a particular branch of the same bank or on other banks with which it may have agency arrangement.
It is needless to say that bank's remittance facility is a powerful alternative to the money order facilities provided by the postal department of our country.
Methods of Remittance
Various methods have been evolved by the banks for remittance of funds from one place to another. Generally such remittance is effected by the banks in three ways, namely: (a) Banker's Draft or Demand Draft (DD) (b) Mail Transfer (MT) and (c) Telegraphic Transfer (TT).
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