What Are Correspondent Services?

A correspondent bank is an authorized financial institution that provides services on behalf of another financial institution. Correspondent bank services may include funds transfer, settlement, check clearing, and wire transfers.

What services are offered by correspondent banks?

Correspondent banks offer the following services, such as Treasury, clearance of cheques, drawing of demand drafts, process documentation, foreign exchange, financing, managing international investments, and more. The correspondent bank charges a specific fee for its services to the respondent bank.

What is a correspondent business?

3. Business Correspondents are retail agents engaged by banks for providing banking services at locations other than a bank branch/ATM.