What is Remittance

Remittance is to deliver the payment of the goods to the

seller by bank transfer.
In remittance, there are four parties involved: the remitter,
the beneficiary, the remitting bank, and the paying bank.
From a legal point of view, the remitter remits the money
to the beneficiary as it is required by the contract
concluded between them.
And when the remitter comes to the remitting bank, he fills
an application form for the bank to effect the payment,
which, upon acceptance, will be binding upon the remitting
bank.
And the paying bank pays the beneficiary because it is the
branch bank or correspondent bank of the remitting bank
in the country of the seller.
 Types of Remittance
Remittance is of two types:
Mail transfer (M/T)
Telegraphic Transfer (T/T)
 Mail Transfer (M/T)
By Mail Transfer, the buyer will hand over
the payment of the goods to the remitting
bank that will authorize its branch bank or
correspondent bank in the country of the
beneficiary by mail to make the payment to
him.
 Telegraphic Transfer (T/T)
By Telegraphic Transfer, the buyer will hand
over the payment of the goods to the remitting
bank which will authorize its branch bank or
correspondent bank in the country of the
beneficiary by telegraphic means to make the
payment to him.
Mail Transfer is less expensive, but it costs more
time, while telegraphic transfer is more expensive
but is much sooner.