Telegraphic Transfer Definitions

1. Telegraphic Transfer or Telex Transfer , often abbreviated to TT, is an electronic means of transferring funds overseas. A transfer charge is collected while sending money.
2. A banking term commonly call "T/T," meaning a cable message from one bank to another in order to effect the transfer of money.

Centralized Clearing Banks in Pakistan

Following is a list of banks operated in Pakistan that have centralized clearing

1. Standard Chartered
2. NIB
3. JS Bank
4. Dawood Islamic Bank
5. Dubai Islamic Bank

LC Sample

Letter of Credit Definitions

1. A document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit
2. A standard, commercial letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking.
3. A credit facility provided by a bank.
4. A common means of payment in international trade, this is a written commitment by a bank to make payment to an exporter on behalf of an importer, under specified conditions.
5. A letter issued by an importer's bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of lading, inspection and insurance certificates, etc.).
6. An obligation issued by a bank on behalf of a bank customer to a third party. There are many different kinds of letters of credit. The two most common are commercial letters and standby letters. ...
7. This is an obligation to pay by a third party, as a guarantee of confirmed funds. A Letter of Credit may be used to improve the credit-worthiness of an entity with no or low credit ratings.
8. A letter generated by a bank to a seller that authorizes a draft payment for a specific amount based on meeting a predefined set of terms (an exact description of the goods, services and quantities).
9. A financial guarantee issued by a bank that ensures that funds will be available if requested.
10. A method of payment for goods in which the buyer establishes his credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required, and a time limit for completion of the transaction. ...
11. A letter, usually from a bank, requesting a person or company to extend credit to a certain person or company and guaranteeing payment. Most commonly used in the purchase of good from another country. The letter may be revocable or irrevocable, but most parties insist on the irrevocable.
12. A financial guarantee provided by a bank that permits the party to which it is issued to draw funds from the bank in the event of a valid unpaid claim against the other party. ...

Forex Definition

The foreign exchange market is a market where foreign currencies are bought and sold.

Ex: if a Pakistani importer imports goods from USA and has to make payments in US Dollars.

Foreign Exchange Operations

• Foreign exchange functions in a bank branch
• The concept of correspondent banking
• Different instruments of international money transfers
• The rules for foreign contributions
• FEDAI rules relating to forex transactions
• Procedure in case of issue and encashment of travelers' cheques/foreign currency notes
• Factoring, forfaiting, and forward contracts

Bank Branch Management - Foreign Exchange Operations

Foreign Exchange Remittance- I

• The meaning of foreign exchange
• Foreign exchange functions in a bank branch
• The concept of correspondent relation between banks
• Different instruments of international money transfers
• The procedure to be followed in transacting inward and outward

Foreign Exchange Remittance - II

• Non-conventional modes of foreign exchange remittance
• The rules for foreign contributions
• FEDAI rules relating to forex transactions
• The procedure regarding issue and encashment of traveler's cheques
• The procedure of encashment of foreign currency notes
• The rules relating to release of foreign exchange to Indian residents

Foreign Exchange Transactions

• How to calculate buying and selling rates for telegraphic transfer (TT) and bill transactions
• The various factors determining forward margin
• The implication of premium and discount
• The procedure of recovery of interest
• Factoring, forfeiting, and forward contracts