TOP

Outward Remittances

The outward remittances refer to the process of sending money in foreign locations from the home country to your family members, friends or relatives. This procedure is governed by lots of regulations. The outward remittances in India are done mainly through banks. If you like to do the outward remittance, you should ensure that you are dealing with the genuine people and firms because you cannot trust any individual or a financial firm for sending your money. You need to select a bank that has international footprint and good reputation for making your job almost effortless.

Outward Remittances Once you have selected a bank to do the outward remittances for you, the next step is to select your mode of transfer. One alternative is to receive a Foreign Currency Demand Draft (FCDD) that will be denominated in foreign currency and it is drawn in favour of the recipient. In this case, the beneficiary does not require an account with the same bank. Another alternative is to send the money via wire transfer. Another word for the wire transfer is the Swift transfer that refers to the wire transfer via Society for Worldwide Interbank Financial Telecommunications. It is a secure and standardised system that allows the banks to correspond with each other. The charges of the wire transfer are higher as compared to the FCCD, however it is very fast and transfer can be done within 24 hours. On the other hand, a demand draft is physically sent abroad and it takes time for clearance.

You are required to complete and submit a remittance request form where you can mention the details like amount of money and the source of money. You are also need to fill the Form A2 and may need a certificate from a chartered accountant. Before the transaction takes place, the customer is told about the forex rate and you should also check the same with the forex rate card of the bank. RBI does not allow the remittances for the other purposes like gambling, margin trading and others. You need read about the rules and regulations related to the remittances of the country before sending the remittance.

Read More
TOP

Inward Remittances

The inward remittances refer to the case where the money is sent from the foreign countries by the migrant workers to their friends, families and relatives in India. For sending the inward remittances, the most popular ways are via bank channels, wire transfer, foreign currency cheques as well as rupees cheques. The foreign currency cheques are issued that can be used for collecting the money by depositing it in a branch of bank in India. The rupee cheques are issued in the Gulf countries for sending money back home. There are many migrant workers that are using the services of online money transfer as offered by banks. Nowadays, banks provide a shorter turnaround time within 24 hours for sending money to India. This proves to be a major benefit of wire transfer as compare to other methods.

Inward Remittances In case, you are looking for a real time-transaction then you can use money transfer agencies that can complete the entire transaction in about five minutes. If you are going for collecting the money sent by the sender in cash, then you should carry a proof of identity and proof of residence. You may carry your passport, voter’s ID or driving licence as the proof of your identity and residence. A money transfer system generally provides a code to the sender that is required to be passed to the recipient prior to receiving the money.

The sender of the money needs to also pay for the administrative costs, transfer fees and agent commission. It basically depends on the amount of money being transferred, mode of transfer and country of transfer. The money transfer systems have a limit to the amount that can be sent per transaction and only a fixed number of transactions allowed in a year. The limitations are also set by the country of origin of transfer.

Read More