Application of Electronic Banking in Bangladesh

1. Introduction

Foreign exchange refers to the process or mechanism by which the currency of one country is converted into the currency of another country and, thereby, involves the international transfer of money. It is the means and method by which rights to wealth in a country’s currency are converted into rights to wealth in another country’s currency .In banks when we talk of foreign exchange ,we refer to the general mechanism by which a bank converts currency of one country into that of another country. Remittance is the main source of gaining Foreign exchange. Export-import is another element of foreign exchange business. Bank is concerned with foreign exchange business. Bank participates in foreign exchange business. Bank does it through “Foreign Exchange department”. Foreign exchange department is the international department of the bank. It deals with globally and facilitates international trade through its various modes of services. It bridges between importers and exporters. In terms of section 2(d) of the Foreign Exchange Regulations-1947, as adopted in Bangladesh foreign exchange means foreign currency and includes any instrument drawn, accepted, made or issued under clause 13 of article 16 of the Bangladesh Bank Order, 1972, all deposits, credits and balances payable in any foreign currency and draft, travelers cheque, letter of credit and bill of exchange expressed or drawn in Bangladesh currency but payable in any foreign currencies.

In exercise of the powers conferred by sec. 3 of the Foreign Exchange Regulations-1947, Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers (AD). Licenses are also issued by Bangladesh Bank to persons or firms to exchange foreign currency instruments such as T.C., Currency notes and coins. They are known as Authorized Money Changers.

1.1 Objectives of the Report:

• To assess the overall performance of...