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

  1. Export Transaction: Inward Remittance
  2. Import Transaction: Outward Remittance
  3. Clean Transaction: No Import/Export is involved i.e. Tourism/Foreign Education/GIFT Money/etc.
  4. Bill Transaction