Funds Remittance

Customers have to make payment for purchases in the place of their business or in the place of business of the vendor/seller. This calls for movement of money from place to place. However, it may not be possible for a buyer to move from place to place for making payments. Nor, it will be economically viable. It is, therefore, necessary that a good payment and settlement system should exist in a country. Banks perform the job of payment and settlements in the financial market.In this regard, Banks have branch network, spread across various cities/regions/states in the country. Some banks have branches and correspondent banks overseas as well. This network enables the banks to remit funds of their customers, if needed, from one place to another in the same country or overseas, by mail/ telegraphic/electronic funds transfer or by issuing bank drafts. Banks charge appropriate fee from the remitting person. Remiftance of funds by banks is fast, safe, secure and cheap, as compared to other modes of funds transfer, like post office money order, physical transfer of money.