07-17-2006, 05:20 PM
Suppose bank A from middle east has correspondent relations with bank B from Pakistan for the remittances.
Following the instructions of bank A(middle east), the bank B(Pakistan) pay the remittance amount to the beneficiaries of the middle east based bank A's customers. In this regard, the amount paid by the Bank B will be credited into the Pak Rs. A/c maintained by the Bank A in their books for Bank B.
Again the debit entry in the books of Bank A will occure when Bank A transfer the due amount to Bank B in order to clear the payable arisen due to payment made to beneficiaries by Bank B on behalf of Bank A.
Following the instructions of bank A(middle east), the bank B(Pakistan) pay the remittance amount to the beneficiaries of the middle east based bank A's customers. In this regard, the amount paid by the Bank B will be credited into the Pak Rs. A/c maintained by the Bank A in their books for Bank B.
Again the debit entry in the books of Bank A will occure when Bank A transfer the due amount to Bank B in order to clear the payable arisen due to payment made to beneficiaries by Bank B on behalf of Bank A.
