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Then, bank informs the concerned person about the electronic transfer of amount and
concerned person receives the amount showing the identity card or proof of the right
person of that amount.

Key Point Electronic transfer is computer based modern means of payment that
provides facility to make the payment in safer, faster, economical and
convenient way.

vi. Hundi
Hundi is an informal way of remitting money
through the network of money brokers. While
remitting money through hundi, customer should
contact the hundi broker of his city and give a
sum of money to be transferred to a recipient of
another city. The hundi broker gives written order
contacting name and address of the recipient to pay
the sum of money to the concerned recipient. The
broker charges small amount of commission. Hundi
is used both in home and foreign trade. Hundi is of Hundi slip
two types, viz. Fixed Hundi and Darsani Hundi. In
case of Fixed Hundi, the recipient receives the amount after certain period of time but in
case of Darsani Hundi the recipient receives the amount immediately.

Key Point Hundi is a written order issued by a business firm or an individual to another
directing to pay the amount.

vii. Money Order
Money order is an order made by a post
office to pay a certain sum of money to the person
specified. Under this method, the buyer requests his
local post office along with the necessary amount
to make the payment to the person specified. After
receiving the necessary amount, the post office Money order
issues telegraphic order to the post office of the seller’s place for paying that amount to
the seller. The second post office calls the seller by a notice and remits the money.

viii. Telegraphic Transfer (TT)
It is a telegraphic order of the buyer’s bank to the bank in the seller’s place to pay a
certain sum of money to the person specified. In this method, the person who wants to
pay the money requests the bank along with the necessary amount to be remitted and
the TT charges for making telegraphic order to pay the money to the seller as specified.
After getting the amount of money with the necessary charges, the bank issues an order
in the name of the bank in another place through telegram. After receiving the telegram,
bank informs the person concerned to come and collect the money. The person with his
identification comes in the bank and collects his money.

54 Aakar’s Office Practice and Accountancy - 10 Trade 55