What is Remittance?

Remittance

About Remittance

What is Remittance?

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.
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Remittances can be used for any type of payment including invoices for business purposes or other obligations like personal transfers made to family and friends.
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According to the World Bank, 2019 Migration and Development Brief, $529 billion in remittances were sent to low and middle-income countries in 2018. An increase of 9.6% over the previous record high of $483 billion recorded in 2017. India, due to its large diaspora and overseas expats population, remained the top receiver of remittances in 2018 and in 2017 as well.
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?Why remittances are on the rise

1. Migration among people who choose to live abroad for jobs or studies is increasing. Therefore, many remittances are made by people who want to send money back home.
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2. Businesses have increasingly relied on the internet as it makes connecting and collaborating with suppliers, employees and clients easier. This has resulted in overseas remittances paying for business invoices.
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Remittances to India

Under the Foreign Exchange Management Act (FEMA) of 1999, Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can open and maintain three types of accounts namely, Non-Resident Ordinary Rupee Account (NRO Account), Non-Resident (External) Rupee Account (NRE Account) and Foreign Currency Non Resident (Bank) Account – FCNR (B) Account. NRO Accounts are not repatriable except for all current income. UAE, US and Saudi Arabia are the top three countries that have seen a growing amount of remittances being sent to India.

Latest Updates on Remittance

India's inward remittances in 2023 rise 12.3% to $125 billion: World Bank

3 min read Last Updated :Dec 19 2023 | 10:41 AM IST
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Overseas debit, credit card payments up to Rs 7 lakh a yr out of LRS: Govt

3 min read Last Updated :May 19 2023 | 9:19 PM IST
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Business visit expenses by employer not covered in RBI's remittance scheme

2 min read Last Updated :May 18 2023 | 11:35 PM IST
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Remittances decline 23% sequentially to $2.1 billion in February

2 min read Last Updated :Apr 21 2023 | 11:05 PM IST
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Increase in TCS under LRS is to target discretionary spending: Revenue Secy

3 min read Last Updated :Feb 03 2023 | 11:33 PM IST
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RBI orders SBM Bank to stop transactions under remittance scheme

1 min read Last Updated :Jan 23 2023 | 7:25 PM IST
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Pace of remittance inflows has slowed for India in the past decade

1 min read Last Updated :Jan 11 2023 | 4:42 PM IST
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Financial inclusion, remittance cost focus areas in G20 meeting

2 min read Last Updated :Jan 08 2023 | 11:08 PM IST
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Outward remittance under LSR dips 28% to $1.92 bn in Oct, shows RBI data

2 min read Last Updated :Dec 20 2022 | 10:45 PM IST
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Abuse of Liberalised Remittance Scheme for offshore betting under CBIC lens

4 min read Last Updated :Nov 02 2022 | 10:45 PM IST
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Banks in talks with Singapore's DBS to begin real-time remittance system

2 min read Last Updated :Sep 07 2022 | 10:33 AM IST
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Asia-Pacific may see up to $54.3-bn remittance loss due to Covid-19: ADB

5 min read Last Updated :Aug 09 2020 | 7:54 PM IST
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