Why Clean or TT rates are more competitive than Bill rates?
- In TT or clean rates bank job is relatively simple as bank recovers the rupee equivalent & issue a remittance by way of TT.
- Rupee amount is recovered immediately
- In bill rates bank has to scrutinize the Import/Export documents
- Follow up with the Importer/Exporter
- Documents have to be kept safe & properly
- The amount of work involved is much more than the remittance. Hence, banks are more competitive in TT or clean rates.
There are 4 types of transaction
- Export Transaction: Inward Remittance
- Import Transaction: Outward Remittance
- Clean Transaction: No Import/Export is involved i.e. Tourism/Foreign Education/GIFT Money/etc.
- Bill Transaction