Remittance From India

The term “remittance” comes from the word “remit,” which means “to send back.” Funds that get sent or transferred to another party, generally overseas, is referred to as remittance. Wire transfers, electronic payment systems, mail, draughts, and checks are all options for remittances. Money transfer remit can be used for a variety of payments, including commercial bills and other responsibilities such as personal transfers.

Many different ways of transfers are used to transfer money from India which are used for different purposes and also helps other countries majority of them being Asian countries. Online Remittance from India to other countries like USA, Nepal, Bangladesh, Vietnam, etc. is made possible with the help of various important banks that are allowing transfer of outward remittances from India to all across the globe. Sending money outside of India has never been easier, more trustworthy, or faster due to banks being able to send money in different currencies, having competitive exchange rates, requests are processed in a shorter amount of time, remittance service is offered over the internet. Unlike many other countries, India does not have too many limits on the outward flow of remittance which makes the transactions easier for general public to follow too.

Remittance to Bangladesh from India is much more than one can imagine. Bangladesh receives 50–55 percent of India’s total external remittances almost every year. Geographical closeness, a big pool of undocumented migrant labour, permeable borders, historical linkages, and, more recently, Indian firms’ growing interest in Bangladesh are some of the factors driving the trend. Non-banking financial businesses are now prohibited from facilitating external remittances from India to certain countries; all transfers must go via banks. Bangladesh, on the other hand, is a key market for major worldwide remittance firms.

Other Asian countries which are close to India are also form majority of recipients of remit money from India, one of them being Nepal. The Indo-Nepal Remittance Facility (INRF) is a NEFT-enabled cross-border remittance programme that allows you to send money from India to Nepal. The initiative was created to give migrant Nepalese employees in India a safe and cost-effective way to send money back to their relatives in Nepal.

Capital flows are essential not just as a source of wealth for the economy, but also because they are transferred in foreign currency, contributing to the foreign exchange market and helping to balance trade deficits. In emerging countries, remittances act as a spur for financial market and monetary policy growth. According to Guilano and Arranz’s research, remittances reduce credit limits for the poor, increase investment strategies, compensate for an absence of sufficient development, and so stimulate economic growth.

India receives remittance from western countries like USA, Canada, Australia, etc. therefore, to maintain the inflow and outflow of wealth, India should maintain transactions taking place to other countries from India.