A remittance is a transfer of money from one party to another, most often used to describe funds that a person working abroad sends to relatives or others in their home country. The word can also mean any payment sent to settle a bill.
Why it matters
Remittances are a significant income source for many families and economies. Getting money across borders involves choices: bank wires over SWIFT, specialist transfer services, mobile wallets or cash pickup. The total cost combines a visible fee and the exchange-rate margin, which can matter more than the headline fee. Speed ranges from minutes to several days. Compliance checks apply, including identity verification and anti-money-laundering screening, and countries may cap amounts or require purpose codes. In India, for example, outward and inward flows follow foreign-exchange regulations.
Example
Send: 1,000 USD
Fee: 5 USD
Rate offered: 83.00 INR (mid-market rate 83.50)
Recipient gets: 82,670 INRHere the rate margin costs more than the fee. The figures are illustrative.
Common mistakes
- Comparing only the fee and ignoring the exchange rate.
- Sending to the wrong account details; cross-border returns are slow.
- Dealing with unlicensed operators, which can lead to lost funds.
Rules vary by country; this entry is a definition only, not financial advice.
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यह पेज सामान्य जानकारी है, जिसे हमारी संपादकीय टीम ने लिखा है और दस्तावेज़ीकरण बदलने पर अपडेट किया जाता है। सर्वर और प्रदाता अलग-अलग होते हैं, इसलिए बदलाव पहले सुरक्षित तरीके से जाँचें। देखें: संपादकीय नीति और अस्वीकरण.