Foreign Currency Inward Transfer (FX Inflow) (2024)

FAQs

What is the inflow of foreign currency? ›

When a country experiences a large inflow of foreign currency, the central bank will buy the foreign currency and issue local currency to the public. As a result, the international reserves accumulate and people have more money in hand.

These are foreign currency transfers received from other banks through our correspondent banks for further credit into GTBank customer domiciliary accounts.

Post instructions, it takes 1-2 working days for a Wire transfer request to get processed and money to reach our local account in your country.

Every single inward remittance needs a document called a Foreign Inward Remittance Certificate (FIRC) issued by the receiver's bank. They may receive inward remittances through two methods: Rupee Drawing Arrangement (RDA) or Money Transfer Service Scheme (MTSS).

Wire transfers and foreign currency demand drafts

Correspondent and receiving banks may charge additional fees when they process the transaction, so you may be charged an additional fee.

The difference between the outflow and inflow of foreign currency is known as Current Account Deficit. Q. Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions equals deficit in the balance of payments.

Inflow of foreign exchange may cause appreciation of local currency, leading to a rise in the prices of export commodities.

The current account balance (CAB) is part of a country's financial inflow and outflow record. It is part of the balance of payments, the statement of all transactions made between one country and another.

A foreign exchange transfer is when a person or business sends money to a bank account in another country. Foreign exchange transfers involve converting money from one currency to another. When sending a large amount of money to another country, you need to pay close attention to the exchange rate.

The foreign exchange market, commonly referred to as the Forex or FX, is the global marketplace for the trading of one nation's currency for another. The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day.

What does FX mean in banking? ›

Forex trading, also known as foreign exchange or FX trading, is the conversion of one currency into another. FX is one of the most actively traded markets in the world, with individuals, companies and banks carrying out around $6.6 trillion worth of forex transactions every single day.

An inward remittance means the transfer of funds into India from outside India. As a non-resident Indian (NRI) living overseas, you may want to send money back to India to support your family, to save money or for other purposes.

Let us illustrate with an example. Mayur, an Indian national, works as a computer engineer in the US. He sends a sizable part of his salary to his parents in Lucknow every month. Every time he sends money to India to his parent's savings account, it becomes an inward remittance for his parents.

HDFC Bank is one of India's leading private sector banks that has gained a reputation for providing seamless and secure inward remittance services.

Copy of VISA along with passport or work permit (If account is to be opened by remitter) and remittance received slip or any other documents that proofs involvement of foreign employment (if account is to be opened by family members of foreign employer).

The Reserve Bank of India (RBI) has set a financial year limit of $2,50,000 (INR2. 04L) for foreign remittances, which applies to both personal and international business- payments. If the remittance amount exceeds this limit, prior permission from the RBI is necessary.

There isn't a law that limits the amount of money you can send or receive. However, financial institutions and money transfer providers often have daily transaction limits. This depends entirely on the establishment. Some might have a $3,000 limit per day, while others might have none at all.

The final rule provides greater flexibility in disclosing certain third-party and foreign fees and taxes. In general, you are required to disclose fees charged by you and “covered third-party fees” imposed on a remittance transfer by an intermediary or correspondent institution, or your agent.