Know about Remittance Service

Remittance is the online money transfer by a person who resides in a foreign country to his or her home country. For many developing countries like India, remittance money constitutes a substantial amount of financial inflow. Money remitted from a developed country to a developing country contributes to the economic growth of the latter, thus attempting to fill in the vacuum left behind by insufficient foreign aid. In its broadest objective, remittance money leads to greater financial and social inclusion. However, as an inevitable yet undesirable effect, an economy supported primarily by remittance money leads to a greater dependence on the global economy instead of evolving a sustainable, local economy. For the past couple of years, India has outpaced other countries of the world in the receipt of remittances. India receives approximately 26 Billion U.S. Dollars, followed by the People’s Republic of China which receives about 23 Billion U.S. Dollars annually. Thus, India, over the years, stands as a benefactor of the new Globalised economy. Indians heading abroad for the opportunities offered by the First World, in terms of lifestyle, education and employment, remit money back home to help cater to the needs of their loved ones. A majority of individuals at the receiving end of remittance money in India belong to the poorer sections of society. This transfer of funds from a developed country to the poorer sections of a developing country is what creates a more inclusive economic system. In order to instill greater security within this system of remittance, the World Bank has set international standards and made it mandatory to disclose the following information whenever a remittance is made: the amount to be disbursed, the fees paid by the sender or the receiver and the date and the place of receiving the remitted money. Remitting money to India is primarily done through a bank which has branches in the country from which the money is being sent, or through third party money transfer operators. However, another important trend has picked up pace in India, remitting money online. Online remittances, gaining increasing relevance in India today, allow the transfer of money by means of a banking website. The outstanding feature of the online remittance facility is that it is instantaneous. In India particularly, there has been a large-scale exodus to the online remittance facility. Faster turn-around times and superior service has been a catalyst in pushing online remittance to predominance.