LETTER OF TRANSMITTAL

July, 2015
Md. Abu Jafar
Coordinator (BBA Program)
Department of Business Administration
Faculty of Business and Economics
Daffodil International University
Subject: Submission of Foreign Exchange Activities of United commercial bank Ltd
Dear Sir,
I have prepared my internship report on the topic of Foreign Exchange Activities of United
commercial bank Ltd under your kind supervision as a requirement of completing the
degree of BBA program. I have tried my best to prepare the report in consistence with the
optimal standard under your valuable direction.
I made every effort to reveal greater insight in this report. I hope that this will meet the
standard of your judgment.
Thanking you for your kind supervision.
Sincerely yours

Md. Nehal Hasnain

ID No: 121-11-346
Major in Finance
Department of Business Administration
Daffodil International University

CERTIFICATE OF SUPERVISOR
This is to certify that the work entitled Foreign Exchange Activities of United commercial
bank Ltd is an original work by Md. Nehal Hasnain, ID #121-11-346, Major Finance,
Department of Business Administration, Daffodil International University, Uttara Campus,
completed under my supervision and submitted for the partial fulfillment of the requirement
for award of Bachelor of Business Administration (BBA) from Daffodil International
University (Uttara Campus).

..............................
Md. Abu Jafar
Coordinator (BBA Program)
Department of Business Administration
Faculty of Business and Economics
Daffodil International University

STUDENT DECLARATION

I do hereby solemnly declare that the work presented in this Internship Report has been
carried out by me and has not been previously submitted to any other University/ College/
Organization for an academic certificate/degree.
I, Md. Nehal Hasnain, ID: 121-11-346, declare that the presented internship report on
Foreign Exchange Activities of United commercial bank Ltd submitted as a course
requirement for the award of the degree of Bachelor of Business Administration at Daffodil
International University was prepared by me.
The work I have presented does not breach any existing copyright and no portion of this
report is copied from any work done earlier for a degree or otherwise.
I further undertake to indemnify the damage arising from breach of the foregoing obligations.

Md. Nehal Hasnain

ID No: 131-11-346
Major in Finance
Department of Business Administration
Daffodil international University

ACKNOWLEDGEMENT
At the very beginning, I would like to express my deepest gratitude to the Almighty Allah for
giving me the strength and the ability to finish the task within the scheduled time.
I would like to offer my sincere gratitude to Lecturer Md. Abu Jafar for his continuous and
patient guidance. Without his valuable advice, preparation of this study in its present form
would not have been possible.
I express my thanks and gratitude to Mr. A K M Masudur Rahman, Deputy General Manager
and In Charge, United commercial bank Ltd. Uttara branch who has facilitated and provided
every support for completing my Internship Program.
For successfully prepare this study at the very beginning, I obviously express my deepest
thanks and appreciation to Mr. Khalid & all other executives and staffs of United
commercial bank, Uttara branch for giving sufficient information to complete this study.
My Special thanks go to my classmates and friends specially Sayonto Shipon for overall
steadfast and loyal support during the preparation of this project. Without these help and
support this study might never see this completion.
However, to my best, I tried very hard and worked very sincerely on this study to make an
informative one. At last my sincere apology goes to the readers for my conceptual and
printing mistakes, if there is any.

ABSTRACT
Nowadays, education is not just limited to books and classrooms. In todays world, education
is the tool to understand the real world and apply knowledge for the betterment of the society
as well as business. From education the theoretical knowledge is obtained from courses of
study, which is only the half way of the subject matter. Practical knowledge has no
alternative. The perfect coordination between theory and practice is of paramount importance
in the context of the modern business world in order to resolve the dichotomy between these
two areas.
Foreign Exchange means foreign currency and it includes any instrument drawn, accepted,
made or issued under clause (13), Article 16 of the Bangladesh Bank Order, 1972. All
deposits, credits and balances payable in any foreign currency and draft, travelers check,
letter of credit and bill of exchange expressed or drawn in Bangladeshi currency but payable
in any foreign currencies. Bangladesh Bank issues Authorized Dealer (AD) license by
observing the banks performance and also the customers associated with the bank for
conducting foreign dealings.
Foreign Exchange Regulation Act, 1947 nobody can export by post and otherwise than by
post any goods either directly or indirectly to any place outside Bangladesh, unless a
declaration is furnished by the exporter to the collector of customs or to such other person as
the Bangladesh Bank (BB) may specify in this behalf that foreign exchange representing the
full export value of the goods has been or will be disposed of in a manner and within a period
specified by BB.
Imports are foreign goods and services purchased by consumers, firms & Governments in
Bangladesh. To import, a person should be competent to be a importer. According to Import
and Export Control Act, 1950, the Office of Chief Controller of Import and Export provides
the registration (IRC) to the importer.
L/C is on instrument issued by a bank on behalf of one of its customers authorizing an
individual or firm to draw drafts on the bank or one of its correspondents on its account under
certain condition stipulated in the credit.

The basic function of this department are outward and inward remittance of foreign exchange
from one country to another country. In the process of providing this remittance service, it
sells and buys foreign currency. The conversion of one currency into another takes place at an
agreed rate of exchange, in where the banker quotes, one for buying and another for selling.
In such transactions the foreign currencies are like any other commodities offered for sales
and purchase, the cost (convention value) being paid by the buyer in home currency, the legal
tender.
Foreign correspondent relationship facilitates foreign trade operation of the bank, mainly in
respect of export, import and foreign remittance. The number of foreign correspondents and
agents of the bank in the year 2007 stood at 322, which covers important business and trade
centers of the world. The bank maintains excellent relationship with the leading international
banks, for handling all foreign. Correspondent and maintaining all foreign business there is
an International Division, which is called ID.
Where the seller provides ocean marine insurance it is necessary to furnish insurance
certificates, usually in duplicate indicating the type and amount of coverage involved. Here
again these are negotiable documents and must be endorsed before submitting them to the
bank
United commercial bank Ltd. is committed to boosting up export; reduce import, rising of
Gross Domestic Product (GDP) and increase employment.
All the branches of United commercial bank Limited are authorized dealer of Foreign
Exchange Business. The authorized dealer motivates the importer to import Raw materials,
Fabrics, Frozen fish, jute items, and electronics goods, Accessories, Chemicals, and Vegetable
Fat

etc.

The import or exports are motivated by the United commercial bank Limited to the foreign
exchange business, particularly to open the letter of credit. A letter of credit offer advantages
both to the importer and exporter. The advantages accruing to either of the parties differ
depending upon the nature of credit opened. There are certain Common benefits accruing
from the use of credit as under.

ACRONYMS USED
L/C- Letter of credit
GB- General Banking
FDBC- Foreign Document Bill for Cash
FDBP- Foreign Document Bill for Purchase
FATF- Financial Action Task Force
ML- Money Laundering
EFT- Electronic Fund Transfer
NBFI- Non-Bank Financial Institutions
ATM- Automated Teller Machine
Bank A/C- Bank Account
KYC- Know Your Customer
BB- Bangladesh Bank
PFS- Personal Financial Service
TP- Transaction Profiling
TT- Telegraph Transfer
E-Banking- Electronic-Banking
CD- Current Deposit