Foreign exchange is a highly specialized business and therefore concentrated in selected
branches of the bank. The decision-making is done at the corporate level in most of the banks. The foreign exchange department is also known as International Banking Division, which is headed by a Senior Executive of the bank. The Chief Executive of the Bank or its Board of Directors are refer the matters involving very large amounts and those beyond the discretionary powers of the executives.
The foreign exchange resources are managed at the corporate level. The actual dealing with the customers takes place at selective branches of the bank authorized to deal in foreign exchange. These branches are mostly concentrated in Metropolitan Cities and other place where either import or export is expected to be high. Here special departments and cells have been setup to decentralize decision-making and reduce the problem of communication from head office to branches. These departments’ functions like advising branches on the market-trading rate to be quoted to customers, maintaining the foreign exchange balances abroad, etc. Bank have also setup at select metropolitan centers special balances dealing exclusively in foreign exchange, designated as overseas branches.