Remittance

Payments

Quick Definition

Remittance is the transfer of money from one person or place to another, often across cities or countries.

Detailed Explanation

Remittance refers to sending funds electronically or through banks for personal or business purposes. It is widely used by individuals working abroad to send money back home.

In India, remittance transactions are regulated by the Reserve Bank of India, especially under frameworks like the Liberalised Remittance Scheme (LRS).

Types of Remittance

  • Inward Remittance: Money received from abroad
  • Outward Remittance: Money sent abroad

Modes of Remittance

  • Bank transfer (NEFT, RTGS, SWIFT)
  • Online payment platforms
  • Money transfer services

Why Remittance Matters

  • Supports families and households
  • Drives foreign exchange inflows
  • Facilitates global trade and payments

Charges & Factors

  • Exchange rates
  • Transfer fees
  • Processing time

Example

"An Indian worker in the UAE sends money to family in India—this is inward remittance for India."

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