World Bank

Remittance

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	Remittance is derived from the word &#39;remit&#39; which means &#39;to send back&#39;. Remittance refers to money that is sent or transferred to another party, usually overseas. Remittances can be sent via a wire transfer, electronic payment system, mail, draft, or cheque.</div>
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	Remittances can be used for any type of payment including invoices for business purposes or other obligations like personal transfers made to family and friends.</div>
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	According to the World Bank, 2019 Migration and Development Brief, $529 billion in remittances were sent to low and middle-income countries in 2018. An increase of 9.6% over the previous record high of $483 billion recorded in 2017. India, due to its large diaspora and overseas expats population, remained the top receiver of remittances in 2018 and in 2017 as well.</div>
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	<strong>&nbsp;Why remittances are on the rise</strong></h4>
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	1. Migration among people who choose to live abroad for jobs or studies is increasing. Therefore, many remittances are made by people who want to send money back home.</div>
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	2. Businesses have increasingly relied on the internet as it makes connecting and collaborating with suppliers, employees and clients easier. This has resulted in overseas remittances paying for business invoices.</div>
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	<strong>Remittances to India</strong></h4>
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	Under the Foreign Exchange Management Act (FEMA) of 1999, Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can open and maintain three types of accounts namely, Non-Resident Ordinary Rupee Account (NRO Account), Non-Resident (External) Rupee Account (NRE Account) and Foreign Currency Non Resident (Bank) Account &ndash; FCNR (B) Account. NRO Accounts are not repatriable except for all current income. UAE, US and Saudi Arabia are the top three countries that have seen a growing amount of remittances being sent to India.</div>

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India world's largest remittance recipient in 2015: World Bank