Inward remittance process

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Published: 29th October 2010
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Receipt of foreign exchange in India is called Inward remittance. Apart from exports there are other transactions, which generate inward remittance. For example Non-resident Indian staying abroad may remit foreign exchange to their relatives in India. Inward remittances are usually in the nature of foreign currency notes, foreign currency traveler cheques, foreign currency cheques / foreign currency demand drafts and inward telex transfers.

When foreign exchange or foreign currency is received or sent to India it is called Inward Remittance. Money can be transferred to India for export or for other transactions as well like for example a Non-resident Indian (NRI) who is staying abroad may want to remit foreign exchange to his or her relative in India; this might be because he or she is supporting the dependants in India. Inward remittance is a collective term for money that is transferred to a country from another country. Inward remittance is a large part of forex services in India and is usually in the form of foreign currency notes, foreign currency cheques, foreign currency traveler cheques, foreign currency demand draft and also inward telex transfers.

Inward remittance process if fairly simple; the remitter in the foreign country can send the money transfer through a foreign correspondent bank through a telex transfer. Most banks offer forex services and all you would have to do is fill out a form with your bank stating the name and address of the remitting bank in the foreign country, your account number with the home country bank to which the amount will be remitted, the currency in which the amount will be remitted, name of remitter, name of beneficiary, and the purpose of remittance. Other than this the remitter can also send a cheques, draft, and international money order drawn in favor of the beneficiary. These instruments can be handed over to your bank that will furthermore collect the money via internal transfer and then deposit the amount in your bank account with them. Every Indian bank has a swift code as well which can be furnished to the remitting bank, which then can automatically transfer or credit the money to your bank account in India.

For more information it is best to consult the forex services department in your bank as they will furnish exact details as to how these things can be carried out with the least inconvenience to you. Inward remittance is a very easy process and can be done with the least amount of hassle, so just ask your local bank for more information.

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