国际结算的课件第四章Remittance.ppt

Chapter 4 remittance kinds of methods of settlements Remittance Documentary Collection Documentary L/C Letter of Guarantee(L/G) remittance and reverse remittance. There are two main kinds of methods of settlements, namely remittance and reverse remittance. The remittance is that the funds flow in a favorable direction to the payment instructions transmitted therefrom. The reverse remittance is that the funds flow in a contrary direction to the payment instructions transmitted therefrom. ? Definition Remittance refers to the transfer of funds from one party to another among different countries through banks. At the request of its customer, a bank transfers a certain sum of money to its overseas branches or correspondent banks and instructs them to pay a named person or corporation domiciled in that country. Parties to a Remittance Remitter Payee/Beneficiary Remitting Bank Paying Bank The remitting bank the bank who transferring funds at the request of a remitter to its correspondent or its branch in another country and instructing the latter to pay a certain sum of money to a beneficiary. The payee the person who is addressed to receive the remittance The paying bank the bank entrusted by the remitting bank to pay a certain sum of money to a beneficiary named in the remittance advice. Outward Remittance Inward Remittance Outward Remittance The remittances which are handled by the home remitting bank Inward Remittance The remittance which those are handled by foreign paying bank . Methods of Remittance Telegraphic Transfer(T/T) Mail Transfer (M/T) Remittance by Banker’s Demand Draft(D/D) Telegraphic Transfer(T/T) The most efficient means with the payment instruction transmitted by telex/SWIFT In any major currency for any amount A fast and accurate way to transfer funds abroad Telegraphic Transfer(T/T) A secure way of remitting funds of substantial amounts payable to a specific beneficiary To facilitate payments on a regular