Remittance payments, especially through UPI, have revolutionised international transfers. With its simplicity, speed, and security, UPI payments have become the canonical method for remittances to India. Simplify transactions right away. Whether you are sending money for family support or any other purpose, UPI ensures that your transactions are executed without any delay. This method is not only efficient but also cost-effective, making it a preferred choice for millions worldwide. Remittance refers to money sent from one party to another, typically across international borders.
What is a remittance
Remittance meaning refers to the transfer of money by a foreign worker or NRI to their home country, usually to support family. These payments can be sent through banks, money transfer operators or digital platforms.
Remittances are a vital source of income for families in developing countries and help drive economic growth in receiving nations. India is the world's largest recipient of remittances, with inflows of over US$ 135 billion in FY25, which support household spending and strengthen the country's external accounts. This makes remittances an important part of India's economy.
There are two types: an inward remittance is money received in India from abroad, while an outward remittance is money sent from India to another country.
Types of remittance: inward and outward
A remittance is a transfer of money from one party to another, and it comes in three main types based on direction. The table below explains each.
| Type | Direction | Example |
|---|---|---|
| Inward remittance | Money received in India from abroad | An NRI or foreign worker sending a remittance payment to family in India |
| Outward remittance | Money sent from India to another country | A resident paying overseas tuition fees, within the LRS limit |
| Domestic remittance | Money transferred within India | Sending money to family in another Indian city |
For domestic transfers within India, you can send money instantly using Bajaj Pay UPI on Bajaj Finance.
What does 'remit', 'remittance', and 'remittance address' mean?
Remit, remittance and remittance address are related terms used in money transfers. The table below defines each with an example.
| Term | Definition | Example |
|---|---|---|
| Remit | To send money to a person or business, usually as a payment | Making a remittance payment to a supplier or a family member |
| Remittance | The transfer of money itself; remittance meaning is money sent from one party to another, often across borders | An NRI sending an inward remittance to family in India |
| Remittance address | The address where a payment or cheque should be sent, used mainly in billing | The mailing address a company lists for receiving payments |
For a quick remittance within India, you can pay directly using Bajaj Pay UPI on Bajaj Finance.
How does domestic money transfer in India compare to international remittance?
Domestic money transfer moves funds within India, while international remittance sends money across borders, and the two differ in channels, limits and regulation. The table below compares them.
| Parameter | Domestic transfer | International remittance | Best for |
|---|---|---|---|
| Definition | Money sent within India | A remittance payment sent across borders | Domestic for local, international for overseas |
| Channels | UPI, IMPS, NEFT and RTGS | SWIFT wire transfer, money transfer operators and eligible UPI corridors | Domestic uses instant rails |
| Processing time | Instant to a few hours | 1 to 5 working days | Domestic is faster |
| Transaction limit | UPI Rs. 1 lakh, IMPS Rs. 5 lakh, RTGS from Rs. 2 lakh with no upper cap | Up to US$ 250,000 a year outward under the LRS | International is capped by the LRS |
| Regulation | RBI payment system rules | FEMA and the LRS, with Form A2 | International needs FEMA compliance |
For domestic transfers within India, Bajaj Pay UPI on Bajaj Finance sends money instantly.
