Remittance refers to the transfer of money by the foreign migrant workers to their family and friends in their home countries. Remittances assist the economic growth throughout the world. The money sent home by the migrants makes up second biggest financial inflow to numerous developing countries and it exceeds even the international aids. A majority of the remittances from USA are focused towards the Asian countries. India tops the list of remittance receivers from USA, followed by People’s Republic of China. India is the leading recipient of Remittance for past many years.
Remittances received by the country led to its economic growth and contribute to the livelihoods of people across the world. In addition to it, the remittance transfers also leads to promotion of financial services for the sender and recipient. It leads to enhanced financial and social inclusion. These remittances also create economic dependency on the global economy rather than creating sustainable local economies. There are a huge number of people that go to foreign location in search for better education, job or lifestyle. Remittance helps these migrants in doing money transaction to their home locations.
Remittance Transfer can be either domestic or International. If the money gets remitted within the same country then it is termed as Domestic. In fact, ten percent of the world’s population makes a part of the remittance procedure. Most of the remittance receivers are economically poor people, and it leads to better economic conditions for them. For making the secure remittances, it is compulsory to mention the following conditions such as amount disbursed to the receiver, the amount to be sent, the date of receiving the remittance will be made available to by receiver, the fees paid by the receiver and sender, and the place for receiving the remittance.