What is the purpose of remittance?

  • ERemit
  • 2 minutes read

An Australian settler can send money to another country for diverse reasons. However, they usually have to state the purpose of remittance upon conducting an international money transfer. Forex transactions often give a wide range of categories for the purpose of remittance. Here let us venture in to see some of the important categories:

  • Capital Account: People who send money for the purpose of a capital account do it as an investment in the other country in many forms. This money generally goes as Foreign Direct Investment, Foreign Portfolio Investment, repayment of loans and overdrafts etc.
  • Imports: Paying advance for importing items from abroad, settling the invoice, intermediary trade etc. comes under the category of money used for the purpose of imports. With international money transfers, anybody can indulge in business and trade without any cash flow barriers.
  • Transfers: This category deals with the purpose of transferring money towards family maintenance and savings, personal gifts, donations to religious institutions abroad, contribution to Government charitable institutions etc.
  • Travel: This purpose of remittance has different types of travel needs such as business travel, pilgrimage, travel for medical treatment, education etc.
  • Personal, cultural and recreational services: Personal, cultural services such as those related to museums, libraries, archives and sporting activities; fees for correspondence courses abroad need to be paid with international money transfer.
  • Income: Foreign settlers need to send money to pay their employees working abroad, send remittance towards interest on Non-Resident deposits or loans or debt securities etc. maintaining and balancing the income of many.

So, if your purpose of remittance is one among these categories then it is a clue to pick that choice. Apart from these, there are some other purposes such as communication services, insurance services, construction services etc. corresponding to the need for sending money overseas. The best online money transfer in Australia facilitates international transactions for all the more purposes and needs. Your money transfer requirements never go unfulfilled!