Introduction to FCY Remittance

Remittance refers to the transfer of money. In general, remittance is payment, it's money exchanged or sent between two parties. Remittance transfer can be either domestic or international. If the money gets remitted within the same country then it is termed as domestic.

International remittances can be following:

• The outward remittances refers to the process of sending money to foreign locations from the home country of sender or customer.
• The inward remittances refers to the case where the money is sent from the foreign countries to the home country of the receiver of funds.

Below are few ways of foreign currency remittance:

• SWIFT message: The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.

Through this method the remitter’s bank send the SWIFT messages to the correspondent or the beneficiary bank to transfer the amount to the beneficiary account and amount is transferred between the banks.

• Foreign currency drafts: Bank can issue drafts to the customer which is one of the modes for outward remittance.
• Personal foreign bill business: This specifies the collections for FCY bills for customers. (Bill includes traveller’s cheque, cheque, draft and promissory note etc). Bank pays to customer immediately or after getting funds from the counter-party.