Know about Remittance and Currency Exchange

What is Remittance?

Sending or receiving money from one country to another country, within the specific laws.

For instance, If you are in India, there are laws for remittance such as Foreign Exchange Management Act 1999 in which RBI gives guidelines for sending/receiving money.

There are two types of remittance:

Inward Remittance: Here Indian nationals can receive money from other countries.

Outward Remittance: Here Indian nationals can send money abroad.

But

RBI put a limit on International money transfer from India by introducing a scheme called LRS[Liberalized Remittance scheme] in which individuals can transfer money up to 2.5L USD.

Let me come to the point..!

How are Remittance and currency exchange carried out and how?

RBI gives 2 types of licenses such as AD1 and AD2 for banks and other financial institutions.

Banks mainly carry out remittance, whereas Financial Institutions carry out both Remittance and currency exchange.

Banks will have a large sum of forex in order to carry out these services and other end financial institutions bring large sums of foreign exchange from other countries.

Let me clarify in detail.

I will take financial institutions such as Orient exchange, which carries out Currency exchange, Remittance, and forex cards.

How carry out these services?

They have Physical offices across India, and one can directly visit to their office with the proper documents for their service.

Another Option is you can book online by uploading all the documents to get the service.

All these operations are carried out in a secure way with proper care taken.