What Is Remittance? | Inward & Outward Remittance - HSBC IN (2024)

FAQs

What is inward and outward remittance in banking? ›

Inward Remittance: Refers to the process of receiving funds from a foreign source into a domestic account. Incoming money in a country generally has fewer restrictions. Outward Remittance: Involves sending funds from a domestic account to a foreign destination.

What is outward remittance? Outward remittance means the transfer of money from India to another country or region.

Remittance is derived from the word 'remit' which means 'to send back'. Remittance refers to money that is sent or transferred to another party, usually overseas. Remittances can be sent via a wire transfer, electronic payment system, mail, draft, or cheque.

If you wish to receive an inward remittance, the sender must initiate a payment through their local bank or any of the following payment methods. Wire transfer is one of the most common remittances. These transfers usually involve transferring money from one bank account to another via a SWIFT network.

A remittance refers to the money sent by one party to another within or outside the country. Remittance is one of the important source of revenue for a country and plays a vital role in its economic growth and development. There are two types of remittance: Inward Remittance and Outward Remittance.

The process typically consists of making an international money transfer through a traditional bank. Banks handle the majority of outward remittances, but there are three main money transfer operators that dominate the non-bank market: Western Union, MoneyGram, and Ria.

The beneficiary is a person Resident outside India as defined in Foreign Exchange Management Act (FEMA), 1999, for all purposes except for remittance to own account abroad.

Generally speaking, international bank transfers will arrive within one to five working days. Let's explore what this looks like. To send an international payment, you simply need to gather all the necessary information (IBAN number, BIC/SWIFT number, recipient's banking details, etc.)

How much can you transfer abroad annually? The Reserve Bank of India (RBI) has set a financial year limit of $2,50,000 (INR 2.08 Cr) for foreign remittances, which applies mainly to personal remittances. For international business- payments, the volume of transactions generally goes above and beyond $250,000 annually.

A bank transfer is when you send a certain amount from one account to another. A bank remittance is used when a transfer is made between two different accounts.

Does remittance mean payment has been made? ›

A remittance is money that is sent from one party to another. Broadly speaking, any payment of an invoice or a bill can be called a remittance.

In accounting terms, remittance generally refers to any transfer of payment which completes a business transaction. For example, if one business purchases supplies from another business, payment made for the supplies completes the transaction and is considered a remittance.

FAQs for Resident Indian Customers

An Outward Remittance is a transfer of money in foreign exchange, by a resident in India or an NRI to a beneficiary situated within or outside the country (except for Nepal and Bhutan) for a purpose as approved under FEMA (Foreign Exchange Management Act).

Essentially, both outward remittance and wire transfer mean the same – transfer funds from one account to the other. However, outward remittances are ment for sending money to an overseas account. Meanwhile, wire transfers can be made both domestically and internationally.

How do I check the status of my remittance? Remitters / Beneficiaries can visit www.bdo.com.ph, click BDO Remit Status Inquiry and enter the reference number of the remittance transaction to see the status of their remittance.

Wire transfers and foreign currency demand drafts

Correspondent and receiving banks may charge additional fees when they process the transaction, so you may be charged an additional fee.

Inward remittance is a secure Bank to Bank process to receive money in a domestic account from an international account . In case of India, inward remittance would mean any funds that are transferred to an India account from a foreign bank.