Importance Of Foreign Remittance

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Foreign remittance:

Foreign remittance means transfer of foreign exchanges from one country to another country through banking or authorized channel. Remittance is an important element for modern finance & business. This is the era of globalization. People are easily moving from one continent to another in search of better standard of living. In the same time they are sending a portion of their income to home countries for family maintenance or for other reasons. The money transferred from abroad to home is known as remittances and the sender of money is known as remitter. Third world country like Bangladesh has migrants and workers worldwide, who are strengthen the overall economy by sending remittances. Thousands of people are currently working and living in a country that is not their home, and sending funds regularly back to their families in their home country. Remittance is important from the customer’s point of view, as it is easy, less expense, minimizing risk. Remittance is important from the banker’s point of view as Bank earn noninterest income, helpful for other business and helpful for stable economic growth. Mainly the following parties are involved in remittance:
A) Applicant or Sender or Purchaser, who is sending money.
B) Drawer or Issuing branch which receive money and instruct other branch to make payment.
C) Drawee or paying branch which make payment.
D) Payee or Beneficiary who receive money.
Remittance in Bangladesh:
Remittance has become a major
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