Global money transfer and transactions involve adherence to several strict regulations and compliances, which might differ in each country. RemitOnTime, the online remittance platform strictly abides by the international money transfer laws to give its customers a seamless transaction experience.
Over the decades, globalization has intensified, with more people migrating to other nations and a rapid increase in the international venture and business collaborations. Further fuelled by the advent of the internet and digitization, the deepening of overseas activities has boosted cross-border funds transfer for both personal and business purposes. According to market reports, by 2022, the value of global cross-border payments is projected to cross $3.56 trillion.
Once a time-taking, costly, and complicated process, with limited payment processing avenues, the emergence of digital remittance services and platforms has simplified the act of global transactions. RemitOnTime is one such international money transfer platform that has been catering to a legion of users offering seamless remittance services. However, before using any medium to transfer funds, one should be well acquainted with the money transfer laws. So let’s begin dissecting the legalities.
Inward and Outward Remittance
Remittance is a terminology used for overseas payment in the form of either gift or payment.
Outward Remittance
Outward remittance is when you send money abroad from India or any other country that you are residing in with outward remittance platform. One can use:
- Wire Transfer, which includes an electronic transfer. The SWIFT system is most used in this category.
- Digital remittance services, such as RemitOnTime that specializes in seamless transfer of funds overseas. It has a highly advanced and secure infrastructure that ensures fast and cost-effective transactions with minimal failure risks.
- Draft by approaching a bank and ask them to issue a draft check by deducting the money from their sender’s account. This method is gradually becoming obsolete with the emergence of easier digital alternatives.
Inward Remittance
Inward remittance is when you receive money from a person residing in a foreign country. It can be via:
- Online remittance services that work equally smoothly as an outward remittance.
- International money orders, cheques, and drafts
- Wire transfer/SWIFT
- Money Transfer Service Scheme
- Rupee Drawing Arrangement
Important Global Money Transfer Laws
Every country has its version of regulations and financial compliances that dictates foreign exchange and the overall financial services industry. For this blog, we have taken up India’s example, where the chief governing body of monetary transfer laws is the Reserve Bank of India. The rules are set under the Foreign Exchange Management Act, 1999 or FEMA. The legislation was purposed to ensure:
- That the funds that are being wired or sent out of the country are not being used to sponsor any criminal activity or act of terrorism.
- The funds sent out of the country are not generated through illegal means.
- That the RBI can stabilize the local markets by monitoring the outflow of money so that it does not have any adverse effect on the economy.
Refer to the rules set forth by RBI for transferring money abroad:
- As per LRS (Liberalized Remittance Scheme), which concerns outward remittance, a resident of the country can transfer up to $2 50,000 abroad in either a single or multiple small transactions.
- However, it does not apply to enterprises and business partnerships.
- For outward remittance, an individual has to show the purpose of the transfer and complete KYC.
International money transfer cannot go through unless these conditions are met. In the case of inward remittance, a person can receive from 12 to 30 funds transfer each year, with a maximum limit of $2500 for each transaction for one person.
International Money Transfer Simplified by RemitOnTime
While there are multiple avenues that one can choose to transfer funds out of the country and receive the same, the traditional ones take a lot of time. The transaction fees are also high, and there is always the risk that the transaction will not go through.
Luckily now there are remittance services such as RemitOnTime, that:
- Instantly processes global transactions.
- Provides industry lowest transaction fees
- Allows one to track the status of the transaction in real-time
- Offers live Forex rates with zero hidden costs
- Has a highly scalable and robust infrastructure with advanced tools and mechanisms to ensure a safe and seamless remittance experience.
Other than these contributing attributes, RemitOnTime strictly adheres to the legal and financial authorities’ regulatory compliances. Getting started on the global remittance platform is easy as well. One has to install the app or access the web version, register them by completing KYC, enter all necessary details, and initiate transactions.
RemitOnTime caters to both individuals and enterprises with remittance and payment processing simplifying financial operations for all.
