Depositing US$ cheque in Pak Rupees account


#1

Hi,

I have a Pak Rupees current account with MCB. Got a cheque of US$1000 (Bank of America) in my name. Can I deposit it in my local MCB branch and will they accept it? I mean can I just deposit it like other cheques and they will convert it into Pak Rupees and deposit money in my account. Of course I know it takes time but is it possible? I called MCB call center and the guy said no it is not possible. But I heard someone saying that you can do it.

Or is there any other way to cash it.

Thanks


#2

nopes u have to open a foreign account.


#3

Yeah Pakistan would be Hell with Zardari as President


#4

That definitely is possible at other banks if not MCB. I guess the MCB customer care is illiterate in this matter.


#5

Yah u can.....

deposit it in ur account and they ll convert it to ur local curency and deposit in ur account

i have did same with google adsense checks which are nothing different from regular chcks


#6

I have deposited more than $1 Million of checks to my rupee account at NIB bank. No problems at all. USD is converted to rupee at current inter-bank exchange rate. Remember bank rate is always lower than market rate.


#7

Thanks guys I will confirm it from branch manager then.

Shoukat your bank is?


#8

[quote=", post:, topic:"]

Yah u can…

deposit it in ur account and they ll convert it to ur local curency and deposit in ur account

i have did same with google adsense checks which are nothing different from regular chcks

[/quote]

and how long does it takes for the funds to get in your account ?


#9

[quote=", post:, topic:"]

and how long does it takes for the funds to get in your account ?

[/quote]

I guess 45 days. And LOL @ your signature.


#10

[quote=", post:, topic:"]

and how long does it takes for the funds to get in your account ?

[/quote]

It depends on your relationship with the bank. If you’re good and trusted client, they can clear the check in 7-10 days (if less than $10,000). For amounts greater than $10,000 . You have to wait atleast 30 days for payment.

Most of the banks take 30 - 45 Days to clear a Foreign Check.

HSBC can clear your check in 21 days, but their fee is higher than others.

Most of the banks get the payment in 5-10 days. But they hold the amount for some period for security purposes.


#11

[quote=", post:, topic:"]

It depends on your relationship with the bank. If you’re good and trusted client, they can clear the check in 7-10 days (if less than $10,000). For amounts greater than $10,000 . You have to wait atleast 30 days for payment.

Most of the banks take 30 - 45 Days to clear a Foreign Check.

HSBC can clear your check in 21 days, but their fee is higher than others.

Most of the banks get the payment in 5-10 days. But they hold the amount for some period for security purposes.

[/quote]

Thanks for your replies @Techman and @Nabz.

1) How much do they charge for their service charges ? approx

2) Is there any documentation required by bank or any other authorities for cheques < $10k and/or cheques > $10k ?


#12

^^

u can pay more to get check earlier.......or faster

i got check paid in 400rs and about 28 days from NBP


#13

[quote=", post:, topic:"]

Thanks for your replies @Techman and @Nabz.

1) How much do they charge for their service charges ? approx

2) Is there any documentation required by bank or any other authorities for cheques < $10k and/or cheques > $10k ?

[/quote]

HSBC asked for 1.5% of the amount of check. So I did not go with them. My current bank NIB Bank takes 0.1% or Rs 1500 which ever is higher. Some banks have fixed rates which can be less than 1000. You need to ask your bank about the foreign check clearance charges.

If your check amount is less than $10,000 , then your do not have to submit any documentation. But if the amount is equal to or greater than $10K , then there is some documentation required. But you don’t have to worry about it much. In my bank when I deposit check of more than $10K, and when about 10-20 days have passed, My bank receives an inquiry from the bank in USA which is responsible for sending the payment. In that inquiry they ask for your personal information, nature of job, address, contact number, and Reason for the payment. They will not clear the payment unless you or your bank have replied to their inquiry and given your brief profile. For me, I get checks more than $10K every month. So I’ve asked my bank to give the same details for reason of payment everytime (as it is same for every check). Once the USA bank receives the reply, they clear the check after the 30 day hold period. Yes the amount is put on hold for 30 days as its more than $10K. You’re bank may put hold on the payment after they received it for some days or weeks.

Why do we have to submit this information ? Its because US Federal government have asked US banks to keep track of the check payments, exceeding $10,000.

The information I have given you may vary bank by bank. Please contact your bank for details.


#14

[quote=", post:, topic:"]

I have deposited more than $1 Million of checks to my rupee account at NIB bank. No problems at all. USD is converted to rupee at current inter-bank exchange rate. Remember bank rate is always lower than market rate.
[/quote]

care to share some of that booty? :P


#15

[quote=", post:, topic:"]

care to share some of that booty? :P

[/quote]

I’m not Zardari. I’m just a web developer :P


#16

I went to my bank today. Asked branch manager about it and he says yes you can deposit US$ cheque in local currency account. It will take 45 days. They have no idea how much money will be deducted as fees but they told me once the amount will be received I will need to sign a bond of Rs.100.


#17

[quote=", post:, topic:"]

I went to my bank today. Asked branch manager about it and he says yes you can deposit US$ cheque in local currency account. It will take 45 days. They have no idea how much money will be deducted as fees but they told me once the amount will be received I will need to sign a bond of Rs.100.
[/quote]

Have dealt with 3 banks for more than 200 foreign checks, never signed a bond.


#18

[quote=", post:, topic:"]

HSBC asked for 1.5% of the amount of check. So I did not go with them…

[/quote]

That was a lot of help @Nabz, thank you so much.

Working as a freelance developer on international projects and getting money paid thru US$ checks/WireTransfer/Western Union etc, I have two questions.

1) Do you need to pay income just like as if you were earning the same amount locally ? Or being IT field and/or foreign remittance is it exempted ?

2) As a one man show/freelancer working from home giving services to clients outside Pakistan and the money getting into Pakistan, does this constitutes to be a “Software Export”


#19

[quote=", post:, topic:"]

That was a lot of help @Nabz, thank you so much.

Working as a freelance developer on international projects and getting money paid thru US$ checks/WireTransfer/Western Union etc, I have two questions.

1) Do you need to pay income just like as if you were earning the same amount locally ? Or being IT field and/or foreign remittance is it exempted ?

2) As a one man show/freelancer working from home giving services to clients outside Pakistan and the money getting into Pakistan, does this constitutes to be a “Software Export”

[/quote]

I’m also a single man worker but have registered a company.

Under Pakistan law, Income tax is exempted on Software Export and Services. You do fall in this category, but there is proper procedure for it.

Here is what I have done. I have registered a company in category related to IT services, I have then registered my company with PSEB http://www.pseb.org.pk/ . It is important to get exempted from income Tax. Now I just have to renew PSEB registration every year and send Bank statement of foreign remittances to income tax department.

If somehow tax lotarey come on knocking on my door (Where are you getting this money from). I will just show them my PSEB certificate, and they can’t say a thing after that.

Its very easy to register a firm. Contact your lawyer. It will just cost around Rs 10K for that.


#20

very very helpful @Nabz, you are a big asset for this forum.