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Remittance
About 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.
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.
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.
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.
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.
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
Wise Payments eyes more of India's $32 billion in overseas remittances
Major lenders like ICICI Bank Ltd. and State Bank of India have dominated the outbound remittance market in India
Updated On : 12 Aug 2024 | 9:46 AM IST
Chatroom: Remittances below $25,000 also need Form A2 now
The RBI has only put up the draft directions on exports and imports of goods and services for public response. The directions would be finalised only after receiving feedback from stakeholders
Updated On : 08 Jul 2024 | 11:39 PM IST
India's inward remittances in 2023 rise 12.3% to $125 billion: World Bank
India continues to be the highest recipient of remittances globally, followed by Mexico ($67 billion) and China ($50 billion)
Updated On : 19 Dec 2023 | 10:41 AM IST
Overseas debit, credit card payments up to Rs 7 lakh a yr out of LRS: Govt
These transactions will not attract tax collected at source
Updated On : 19 May 2023 | 9:19 PM IST
Business visit expenses by employer not covered in RBI's remittance scheme
The ministry on May 16 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023 to include international credit card payments in the LRS
Updated On : 18 May 2023 | 11:35 PM IST
Remittances decline 23% sequentially to $2.1 billion in February
Further, in April 2022-February 2023, outward remittances under LRS stood at $24.18 billion, an all-time high
Updated On : 21 Apr 2023 | 11:05 PM IST
Increase in TCS under LRS is to target discretionary spending: Revenue Secy
TCS on remittances made under the LRS was introduced in 2020
Updated On : 03 Feb 2023 | 11:33 PM IST
RBI orders SBM Bank to stop transactions under remittance scheme
The scheme allowed Indian residents to freely remit funds abroad up to $250,000 per financial year
Updated On : 23 Jan 2023 | 7:25 PM IST
Pace of remittance inflows has slowed for India in the past decade
Cash transfers increased in absolute terms but the rate of growth decelerated
Updated On : 11 Jan 2023 | 4:42 PM IST
Financial inclusion, remittance cost focus areas in G20 meeting
In Kolkata, apart from the plenary meetings, there would be a symposium that would see participation of 12 international speakers
Updated On : 08 Jan 2023 | 11:08 PM IST
Outward remittance under LSR dips 28% to $1.92 bn in Oct, shows RBI data
International travel contributed over $970 million or 50 per cent of $1.92 billion remitted by Indians in October 2022
Updated On : 20 Dec 2022 | 10:45 PM IST
Abuse of Liberalised Remittance Scheme for offshore betting under CBIC lens
Separate investigation on home-grown online gaming companies shows tax evasion of up to Rs 80,000 crore
Updated On : 02 Nov 2022 | 10:45 PM IST
Banks in talks with Singapore's DBS to begin real-time remittance system
At least five Indian banks, including the State Bank of India and ICICI Bank, are in discussions with Singapore's DBS Bank to start a real-time remittance system using UPI as the backbone
Updated On : 07 Sep 2022 | 10:33 AM IST
Asia-Pacific may see up to $54.3-bn remittance loss due to Covid-19: ADB
The ADB said that employment in host economies of Asian migrants is contracting significantly
Updated On : 09 Aug 2020 | 7:54 PM IST
India world's largest remittance recipient in 2015: World Bank
It retained its top spot in 2015, attracting about $69 billion in remittances, down from $70 billion in 2014
Updated On : 14 Apr 2016 | 2:35 PM IST