Bank Charges

4 Responses to Bank Charges

1. Tom says:

   January 23, 2017 at 5:18 am

   We need also to educate the bank that remittances from foreign in one bank account (FCRA) and bank charges in a local account is not done and needs to be charged to the FCRA bank account only. In this case if we deposit a cheque pertaining to a specific bank account it could be deposited into another bank account.
2. Subhash Mittal says:

   January 20, 2017 at 1:22 pm

   No once the funds have been debited to your local account, for FCRA purposes it would become local utilisation and should be charged accordingly. I would not suggest transferring of funds from FCRA to local for this, as such transferring needs to be avoided to the extent possible.
   • divyesh Surati says:

     January 23, 2017 at 9:32 am

     Dear Sir,
     I think the expenses pertaining to FCRA must charged to FCRA Account. If bank has debited the amount of bankcharges to local account it does not mean that it is bared from local fund. I suggest to issue a internal debit note from Local account to FCRA account and by debiting such expenses in FCRA it is to be paid to LOcal Account.
     It is also a payment and such payment can be done through this method.
     • Subhash Mittal says:

       January 25, 2017 at 8:00 am

       Surati sahib,

       What you say is correct in terms of accounting, particularly following the matching concept. Problem here is that bank charges have already been debited by my banker to my local bank account. Hence local funds have been utilised for local charges. Rather than transferring funds from FCRA to local account for the same and keeping a trail of mixing of funds, my preference is that FCRA requires how I have utilised the fund. If I can bear the cost of bank charges in my local account, it is not an FCRA issue, but more of accounting issue. But agree, strictly what you say is correct procedure.

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