Question

distinguished between telegraphic transfer rate and bill rate
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Answer 1

Answer:

TT (Telegraphic Transfer) buying rate indicates the rate at which bank convert foreign inward remittances to INR. TT Selling rate indicates the rate at which the bank sends an outward remittance through telegraphic transfer.

Answer 2

BC (selling) rate to the import entails some additional labor. The rate includes both the bank's standard TT selling rate and the expenses related to document handling.

Selling Rate of TT (TT stands for Telegraphic Transfer).-For any transactions in which the bank is not handling the paperwork, this rate must be applied.

• The transactions in which the rate is provided include Issue of demand draft, mail transfers, telegraphic transfers, etc., other than for retirement of an import bill, are transactions for which this rate is mentioned.

• Cancellation of previously obtained foreign currency. For instance, the bank will use the TT selling rate for the transaction when an earlier-purchased export bill is returned unpaid on its due date.

• The selling rate of bills-All transactions involving the management of the document by the bank, such as payments against import invoices, must utilize this rate.
• The exchange margin is added to the TT selling rate to determine the selling rate for bills. In other words, the exchange margin affects the selling rate of bills twice—once at the interbank rate and again at the TT selling rate.

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