Inland Remittances of Pakistan

1. Inland
Remittance

2. Introduction
• The way of transferring money from one place
to another within the country is known as
Inland Remittance.

3. • Demand Draft (DD)
• Telegraphic Transfer (TT)
• Payment Order (PO)
• Security Deposit Receipt (SDR)
• Mail Transfer (MT)
• Electronic Transfer (ET)

4. Issue of Demand Draft
• A Demand Draft can be issued in the following
three different ways, which depends upon the
mode of payment by the customer:
a) Against Cash
b) Against Cheque
c) Against a letter of instruction
In all cases the procedure of issuing a Demand Draft
is almost same.

5. General procedure for issuing a DD
1. The customer is asked to complete the form
2. Commission, charges etc. are calculated and inserted
3. Required amount of money is deposited either by Cash or
by debiting the customer’s account.
4. After receiving the cash, the voucher is given to Remittance
Department.
5. Draft is prepared and the particulars are entered against the
respective Branch.
6. A memorandum is issued to the customer if he desires.

6. Payment of Demand Draft
The DD can be paid by a branch in any of the
following ways:
a) Cash Payment (normally discouraged)
b) Payment through Transfer
c) Payment through Clearing

7. Issue of Telegraphic / Telephonic
Transfer:
• Can also be issued in the following three
different ways, like a Demand Draft:
a) Against Cash
b)Against Cheque
c) Against a letter of instruction

8. General procedure for issuing a TT
• The customer is asked to complete the form
• Required commission, charges etc. are calculated and
inserted in the case provided
• Required amount of money is deposited either by Cash or
by debiting the customer’s account
• After receiving the cash, the voucher is given to Remittance
Department
• Relevant information are to be entered in the respective
space
• Telephonic message is passed to the respective Branch

9. Payment of TT
a) After receiving the message from TT issuing Branch,
paying Branch has to verify the test number.
b) If the Test Number agrees a stamp “Test Number Agrees”
should be affixed.
c) Following entries are then passed:
1. : Head Office A/C (Branch Concerned)
2. Cr. : Bills Payable A/C, TT Payable A/C

10. Issue of Payment Order
• Steps for issuing a Pay-Order is as like as the
steps followed in case of issuing a Demand
Draft (DD).
Payment of Payment Order
• When PO is presented for encashment, similar
procedure is to be adopted as explained in
payment of DD

11. a) Similar procedure is to be adopted as explained in
issuing a DD/PO
b) The only difference from PO is that for SDR a
separate Head of Accounts viz. “Sundry Deposit
Account” is to be credited instead of Bills Payable
Account.
c) SDR cannot be cancelled as is done in the case of
other instruments.

12. a) In addition to the application of the purchaser, a
confirmation of the beneficiary should also be obtained
to the effect that, the instrument has been lost or not
received by him/her
b) Head Office approval is to be obtained before
issuing a duplicate SDR.
c) All other formalities/procedures are as like as
mentioned for issuing a duplicate DD.

13. Mail Transfers
• Mail Transfers (MTs) are issued by Banks for
transfer of funds between branches through
the medium of post offices either for credit of
an account holder or for payment to a certain
beneficiary
• The issuing branch directly sends the mail
transfer to the drawee branch on the same day
by Post.

14. Electronic Transfers
• Electronic Transfer is the transferring of funds
through Computers and cell phones
• E.g Easy Paisa, UBL Omni, Mobi Cash