Remittance Services: Money Order & Postal Order and Banking Services (For CBSE, ICSE, IAS, NET, NRA 2022)

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Remittance Services

Suppose, you are working at a place far away from your home and you want to send money to your family. You can send it through the remittance service offered by the post office. It provides Money Order and Postal Order facility with the help of which people can transfer money from one place to another within as well as outside the country. Let us know more about money order and postal order.

Remittance of Services

Money Order

Money can be sent through post office under money order service. Money order is an order issued by one post office to another post office to pay a certain sum of money only to the person named therein. If you want to send money then first you have to fill up a money order form which is available at all post office on payment. The duly filled in form along with the money to be remitted is then handed over to the post office. In a single money order form, we can send a maximum amount of ₹ 5,000/. The money order form also contains some space where you can write down your message for the addresses. The filled in form is then sent to the post office where payment is to be made. The postman carries the form with him and after obtaining the signature from the addressee, handed over the money to him. For this service, post office charges a specific commission from the sender, which varies according to the amount of money sent. For the convenience of customers, post office offers different types of money order services like Ordinary Money Order, Telegraphic Money Order, Satellite Money Order, Speed post Money Order, etc. For the convenience of businessmen, it also offers Corporate Money Order service.

Postal Order

With the help of Money Order, we can send money through postal order i.e.. , Indian Postal Order (IPO) . It is a convenient method of sending money from one place to another and is mainly used for remitting examination fees or while applying for any job. Postal Orders are available at all post offices in different denominations like Re. 1/-, ₹ 2/-, ₹ 5/-, ₹ 7/-, ₹ 10/-, ₹ 20/-, ₹ 50/ -, and ₹ 100/-. We can buy Postal orders on payment of prescribed charges and send it to the payee after mentioning his name and specifying the name of the post office, where it is intended to be encased. The payee after receiving the postal order produces it for payment at the post office mentioned in. To ensure payment to the right person, we can cross the postal order by putting two parallel diagonal lines on its top left-hand side corner just like crossing a bank draft or a cheque. The effect of crossing a postal order is that the payment can be collected through the payee՚s account at the post office or bank. This method of remittance is mostly used for official purposes.

Banking Services

Banks almost deal with money. A bank accepts deposits from the public and grants loans and advances to those who need funds. Besides accepting deposits and lending money, a bank also helps the customers keeping their valuables under safe custody, sending money from one place to another, providing business information, etc. Post offices undertake some of these services like accepting deposits from the public and withdrawal of deposits. Thus, we may say these are the banking services offered by post office. Under this service it offers various schemes to encourage the savings and motivate people to save.

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