Remittances- Outward

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Remittances are generally of 2 kinds, Inward remittances and Outward remittances.

Remittance requests submitted by customers are processed by the Bank without taking any risk or responsibility on the amount being received by the final beneficiary. This kind of remittances are called outward remittances. Customers submit their requests to the Bank through the various channels offered by Banks which are Branches, Internet Banking, Mobile Banking and etc.

Various Intermediary Banks are involved in the process of sending this remittance as the Bank may or may not have a direct relationship with the Beneficiary Bank. For eg: A remittance is to be sent to China from UAE in USD. The sending Bank from UAE will send the remittances through its correspondent Bank which inturn will search a Correspondent Bank which has a relationship with the Beneficiary Bank and the payment will be transferred to the Beneficiary Bank and in turn to the Beneficiary. This complete process generally takes 3-5 working days depending on the countries involved in sending the remittance and also the agreement between Banks.

A very important thing to notice when a remittance is sent in a foreign currency is the value date offered for that particular remittance. The value date is generally 1 day after the remittance is sent but may be different incase the Beneficiary or the Intermediary Bank has holidays during those days. For eg: an amount might be debited from the customers account on 2nd of a month but the value date provided by the Bank may be 6th due to intervening holidays. This means that the amount will not be received by the beneficiary till the 6th or 7th of that particular month.

As is a case for all requests submitted to the Bank, a remittance request may be rejected by the Bank due to compliance reasons or sanctions levied against that entity or country and also may reject a request without giving any reason what so ever and the Bank reserves the right to do so.

Information about inward remittances will be provided in the coming article.