Remittances Come in a Variety of Forms:
Remittances from abroad
The monies you receive in your bank account from another account in India or overseas are referred to as inward remittance. When you send money to a local account in India as an NRI living in Canada, the financial transfer is referred to as an inbound remittance.
Remittances to Other Countries
An outbound remittance is when you send money from your home country to another one. When Indian parents send money to their kid, who is an international student in Sydney the money transfer service becomes an outward remittance for the parents.
Remittance Payment Methods
Let's look at the different payment options now that we've covered what remittance means in banking.
Bank Transfer
A bank transfer is a method of transferring funds between bank accounts. This can be done on a local or global scale. A cross-border payment including a deposit into a foreign bank account is known as a local bank transfer.
Apps for money transfer
Several apps have sprung up as a result of the advancement of technology, allowing for speedier remittances. Using money transfer applications to pay is simple, safe, and convenient. Processing is nearly instantaneous.
Limits on remittance transactionst. The remitting or intermediate bank, on the other hand, may levy a fee. You'll also have to pay a one-time fixed cost for international currency conversion. There is also a service tax.
If you want to make international financial transfers, you need to know what remittance means in banking. Consider essential considerations including timing, currency rates, and fees when selecting whether to perform a wire or a bank transfer. This will assist you in selecting an appropriate payment option so that your loved ones may receive the monies sooner.
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