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Remittance Data

The primary source of official data on the migrants’ remittances includes the annual balance of payments records that are compiled in the Balance of Payments Yearbook. This yearbook is published by the International Monetary Fund (IMF) annually. The term “migrant remittances” in migration literature refers to the transfer in cash or other form from a migrant to residents in the home country. As per the IMF data, there are three categories of data that are mentioned below.

Remittance Data (1)Workers’ remittances – It refers to the transfers done in cash or in kind from the migrants to resident in their home country. It refers to the ongoing transfers between same family members where the migrant is working and residing in foreign locations for more than a year.

(2) Compensation to employees – It refers to the salaries, wages, and other remuneration in cash paid to individuals who work in a country apart from where they reside legally. These include the money earned by short-term migrant workers that are working abroad for less than a year. It also includes the wages earned by the border workers who work in the neighbouring country but do not reside legally over there. It includes the salaries earned by the local staff of foreign institutions like embassies, international organizations, and companies that operates locally and are based abroad.

(3) Migrants’ transfers are the capital transfers of financial assets that are done by migrants as they migrant from one country to other and stay there for over one year.

The categories used by the IMF are actually well defined and there are many issues related to their implementation in worldwide locations that may affect their comparability. The data should be used with careful interpretation and it has serious limitations. The official remittance figures may also overvalue the inflows size and other type of monetary transfers is difficult to be distinguished from the remittances.

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Remittance Advice

A remittance advice is basically a letter that is sent by a customer to a supplier informing him that their invoice is paid. If the customer is making payments by cheque, the remittance advice is usually accompanied with the cheque. The remittance advice primarily consists of a literal letter or a voucher that is attached to the top of the check. However, the remittance advices are not strictly required. They assist the supplier’s accounts-receivable department for matching the invoices with the payments. The remittance advice also mentions the invoice number of the payment.

Remittance Advice The companies in general design the invoice in such a way that a portion of the invoice is returned by the customers along with the payment and it is referred as the remittance advice. The employee on receiving the mail, compare the amount of cash received with the amount displayed on the remittance advice. In case, the customer does not return a remittance advice, a new remittance advice is prepared by an employee. The remittance advice actually serves as a record of cash received similar to the cash register.

Nowadays, there are modern systems in place that scan a paper remittance advice into the computer system and perform the data entry. In fact, these modern remittance advices include hundreds of invoice numbers along with other detailed information. Remittance advice can be complex in specialized fields such as medical insurance payments. The remittance advice in such cases comprises of document with large number of pages with detailed information.

An Electronic Remittance Advice refers to an electronic version of a payment explanation that offer the details related to the providers’ claims payment. In case, the claims are denied, it contains the needed explanations. HIPAA X12N 835 standard is the industry standard for sending Electronic Remittance Advice data.

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Overview

Remittances has been shaping the economies of many countries and making effective contribution to economic growth as well as the livelihoods of poor people. The remittance receivers depend on the money sent to them for living a fulfilled life and they have a higher tendency to own a bank account. Remittances make the access to financial services effortless for both sender and recipient. In fact, remittance plays a major role in the promotion of economic development. As per the statistics, the top recipients as per the share of remittances in GDP comprises of many smaller economies like Tajikistan (45%), Moldova (38%), and Honduras (25%).

Remittances  Overview The G8 summit had decided to take actions in 2004 for reducing the costs for migrant workers who are working in foreign lands and send money back in their home country to their friends and families. As a result of this initiative by G8 summit, there are various G8 government developmental organizations like the UK government’s (DFID) and USAID that are taking adopting measures to the lower costs of remitting money. G8 heads of government and states also support the objective of lowering the cost of remittance services by five percentage points with in time span of five years. In order to cut down costs, the World Bank has initiated giving the certification to the regional and national databases for using consistent methodology in order to compare the cost of sending remittances.

The remittances are rooted into the migration people life since the time of history. During the 19th and 20th centuries, many European countries like Italy or Spain, were hugely dependent on remittances sent by their emigrants. These countries had formulated policies on remittances after doing significant research efforts in the field. Italy became the first country in 1901 to enforce a law for the protection of remittances.

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Letter of Remittance

Letter of remittance is basically a document that accompanies checks or drafts that are submitted for collection. It lists the number of checks (items) being sent along with the total dollar amount mentioned in the checks. The checks presented to other banks for payment accompanies a cash letter. A remittance letter is primarily used when the bank does not possess an account at the receiving bank. The three basic pieces of information are contained in any kind of remittance letter. It has the identification of sender with name and mailing address of the debtor. In addition to sender’s contact information, it also mentions the reference of the name and address of the creditor. It also has the details of the amount of the enclosed payment in the body of the letter.

Letter of Remittance In addition to the above mentioned details, there are other types of information that may be included in the body of the remittance letter. The account number of the debtor can be included along with a reference to any invoice number to which the payment needs to be applied. It also contains the goods or services that were bought by the customer. The due date of invoice can also be mentioned.

The entire format for a remittance letter is kept short and brief. The remittance letter starts with the date of the correspondence and it is followed by the recipient name and mailing address. It should have a simple salutation where the sender can mentioned the details including reason for the payment, and any other data in one or two paragraphs. The information contained in the letter should assist the receiver in applying for the payment effortlessly. In the end of the letter, the standard closing along with the signature of the sender should be followed.

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Remittance Man

A remittance man is an emigrant that is supported or assisted by the payment of money sent from home. Remittance Man also has a historical English meaning that dates back to 19th century when it was referred for sending money from Britain to a person living in distant locations like a British colony. Thus, it involved the sending of money in the opposite direction as compared to today’s usage of remittance. Generally, a remittance man or remittance woman refers to anyone who is living away from home and supported by their family in other house, city, or country irrespective of their reason for living there. Some of the reasons may include looking for business fortune, extended vacation, employment, education, or away from family, or legal troubles.

Remittance Man Successful Remittance Men – It refers to a remittance man that has been living separately from the family members for seeking their own fortune and proof of worth. An example of successful Remittance men is George Vanderbilt and Biltmore Estate. It also includes the persons whose family remittance payments came from middle class families. Historically, the examples of successful remittance men comprises of movement of many people from east coast family home to the west coast in America for seeking fortune and initiating new businesses.

Dark Side Remittance Men – It refers to the remittance men who were paid to stay away so that they would not bring any disgrace to the family. Most of the time, these men were of immoral character and drunken character. They have been sent overseas after their presence caused inconvenience in their home location. References to this can be found in the literary works of American writer Mark Twain and Canadian poet Robert Service. It was primarily used in a derogatory sense in major parts of the America in 20th century.

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