Everything you need to know about Remittance

People who live away from home always need ways to send money back to their families. For domestic transfers, there are various options like NEFT, IMPS, UPI Payments, and more. However, for international transfers, remittance is the way to go for fast and reliable money transfers.

 

NRIs across the world send money back to India for various reasons such as supporting their families, making investments, or maintaining an NRE Savings Account. It is one of the most effective, fastest, and cost-effective ways to send money to any part of the world.

 

What is a remittance?

The term “remittance” comes from the word “remit” which means ‘to send back’.

Remittance is the overseas transfer of money from one party to another. Remittances also significantly add to the gross domestic product (GDP) of a particular country. Remittance is used for various reasons by different people across the world. Most NRIs who work abroad send a portion of their income back home to their families. Remittance is one of the best options to do that.

 

Types of remittance

There are two types of remittance services that people can use to send money to their family and friends anywhere across the globe.

 

Outward Remittance

Outward remittance is when someone sends money abroad from India. Many parents use outward remittance as a way to send money to their children who are studying abroad to support them financially till they can get up on their own feet.

 

Inward Remittance

When an NRI sends money from anywhere across the world to their friends or family in India, it becomes an inward remittance for them. Similarly, it becomes an outward remittance for the NRI sending the money.

 

Things to remember before you choose a remittance service

Many international banks provide remittance services for NRIs, but before choosing one, it’s important to weigh the pros and cons. 

 

Reliability

It’s important to choose an entity that is registered and reliable to carry out your remittance transaction. There are many unlicensed agents out there claiming to get the job done for a lower exchange rate but turn out to be untrustworthy. It’s important to confirm the reliability of the service provider at every step right from the sender to the receiver.

 

Timing

Usually, when people are in a hurry, they end up choosing a remittance service that may not provide good value for money. It’s recommended to plan these transactions well in advance so that you can compare the best exchange rates, transfer time, and other features and make sure you’re getting the best service for the least cost. 

 


 

Exchange rates and charges

There are many remittance services out there but the exchange rates and charges for each differ. It’s important to check for any hidden costs and other factors that might add to your already existing charges and exchange rates. This is why it’s recommended to plan these transactions, compare exchange rates by different platforms and choose the best available option for you basis discounts, special offers, time is taken to transfer money, and other factors. 

 

Convenience

Once you find a reliable service provider, things get much more convenient. If the exchange rates, charges, transfer time, and other factors match with your interests then you can keep using the same service for all your remittances. Many banks have made the whole remittance process so much easier, you can transfer money in a matter of a few clicks. 

 

Customer service

Understanding how remittance works can be a little tricky. Especially if you’re new to it, you may have doubts that need to be cleared before you can proceed with a transaction. It’s important to have a bank with competent customer service that can answer all your doubts and assist you every step of the way. 

 

SBM Bank India’s SBM Remit is one of the best players out there when it comes to remittance services. Whether you are sending money to loved ones back home, or for investments to grow your wealth, or buying that coveted property, your experience can be seamless and cost-effective. With just a few clicks, you can send money anywhere across the world and fulfill your goals!

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