Remittance

In my earlier posts, a brief idea was given about the Banknotes  and Bank Accounts in India, Now Today, Let's understand something about remittances.....

MODE OF REMITTANCES IN BANKING

Apart from accepting deposits and lending money, Banks also carry out, on behalf of their customers the act of transfer of money - both domestic and foreign - from one place to another. This activity is known as "remittance". A remittance refers to money that is sent or transferred to another party. The term is derived from the word remit, which means to send back. Remittances can be used for any type of payment including invoices or other obligations.

INTERNAL MONEY TRANSFER – The transfer of funds within the country can be termed as internal money transfer or domestic remittance. Banks issue Demand Drafts, Banker's Cheques, and Pay Orders etc. for transferring the money. Banks also have the facility of quick transfer of money through electronic or online mode like ECS, NEFT, RTGS and IMPS.

INTERNATIONAL MONEY TRANSFER  – The transfer of funds from one country to another country can be termed as international money transfer or foreign remittance. It can be both Outward or Inward remittance and can be executed through bank issued Demand Draft, Personal Cheque, Wire Transfer or Online Transfer.

Coming Up.....Internal Money Transfer