What are the different terminologies associated with remittance

• Posted by Shashank Bhaskar December 10, 2021 - Filed in Other - #remittance  #international money transfer  #bank remittance  - 109 views

  Sending money abroad brings up several important questions and concerns. Whether you need to send money to family, friends, or for business reasons, the last thing you want to spend your time doing is wondering how long it will take for the funds to arrive. Several situations arise in which you or your relatives require funds urgently, especially in medical emergencies.

  When you visit a bank or international money transfer provider for remittance, they use specific terminologies. The Society for Worldwide Interbank Financial Telecommunication network allows banks and financial institutions to communicate securely quickly and securely.

  Procedure

  To make an international money transfer, you need to supply the necessary information depending on the entity used. Typically, you need to know the name and address of the recipient bank, the International Bank Account Number, SWIFT code, reason for transfer, transfer amount, currency, and the fee payer.

  Duration

  Depending on the bank, bank remittance takes longer. Once you submit the transfer request, the bank follows the usual procedure. Each has its cut-off time. You need to submit the request before it to avoid processing the next day. The duration of the transfer is one to five business days.

  Terminologies

  There are various terms you come across while dealing with the bank and international money transfer app. Understanding them ensures you select the best scheme and complete transactions efficiently.

  Account holder

  It is the person who owns the account and is authorised to initiate transfers. When starting a foreign remittance from your Bank Account, you need to enter the recipient’s account information carefully and accurately.

  Authorisation

  Before completing the transfer, the bank asks for your approval. You enter the verification code in some cases from your mobile or email before authorising the transaction.

  Banking day

  It refers to the days that the bank remains open and operational. When the sender initiates a money transfer from India on a weekend or non-banking day like public holidays, the account statement records the transaction date as the next day.

  Clearing House

  It handles the clearance of payments. When the sender initiates a transfer, it does not appear in the recipient’s Bank Account until a clearinghouse approves the transaction.

  Cut-off time

  Banks have an established time to send money abroad each day. They stop processing transactions and only resume the next banking day. Transacting after this cut-off time means your transfer takes longer to arrive at the recipient’s bank.

  Exchange rates

  Exchange rates determine the currency’s value against another, and both banks and money transfer services charge a fee for completing the exchange.