Resumen
Banks form an essential backbone of the economy. In this era of globalization foreign trade form a significant functional priority of the bank. India faces stiff competition in the global market and to continue in the race it needs to strengthen its banking system. Punjab National Bank (PNB) is one of the leading banks which have flown its branches to various small parts of the country. As so it is an essential bank of India, and therefore there is an utmost need to have an insight into the foreign exchange of PNB. This study reveals various loopholes in the foreign exchange policy of PNB Varanasi like 98.5% percent of foreign exchange business from one party only, the dissatisfaction of customers, merging of foreign Exchange and general banking, lack of yearly financial reports and many more. Based on the finding positive recommendation has been suggested to improve the foreign exchange status of PNB which if followed can enhance the functionality of its foreign exchange, and it can stand as an essential backbone in the Indian economy.