The term ‘remittance’ is derived from ‘remit’, meaning ‘to send back’. While both bank transfer and remittance methods involve the transfer of money, remittance focuses on cross-border transactions dedicated to familial support. For instance, if a migrant or foreign worker sends money back home, the fund transfer is a remittance. So, “remittance” refers more broadly…
Service charges are intended to cover the cost of services provided by the bank. As per RBI guidelines, for basic charges rendered to individuals, banks will levy charges ad valorem subject to a cap. RBI working group recommended service charges shall be fixed on a principle that fixing lower rates for individuals as compared to…
Many commercial Banks more particularly all public sector banks deal with various Government business products and services. They cater the services for departmentalized Ministerial Accounts of Central Government, and State Governments including Online Tax collection, State government tax collection, Sub-Treasury Transactions of the State Governments, E-Stamping of State Government Stamp Duty collections, National Pension Scheme,…
A digital payment sometimes called an electronic payment, is a good alternative to traditional methods of cash payment and speeds up transaction cycles from person to person, person to business, person to government, Government to person, business to business, business to Government, etc. “Faceless, Paperless, Cashless” is one of the professed roles of the Digital…
Electronic Benefits Transfer (EBT) is a system that allows eligible citizens to receive benefits from programs like the Supplemental Nutrition Assistance Program (SNAP) and Cash Assistance. EBT cards function similarly to debit cards, with recipients receiving an allotted amount each month based on their household size and income. The beneficiary recipients can make purchases from…
Mail transfer and telegraphic transfer (TT) are used to send money to accounts of the customers of the same bank from one place to another. Though increasingly convenient earlier; mail transfers and Telegraphic transfers are slowly getting outdated because of their slow processing periods. Now, customers have instant banking solutions like anywhere banking (AWB) of…
A demand draft (DD) is a pre-paid instrument that allows a bank customer to transfer money to another individual or business at a different destination. The demand draft is originated at one branch of a bank drawn at another branch of the bank ordering to pay a sum of amount to the individual/business entity or…
Section 72 of the Indian Contract Act provides that a person to whom money has been paid by mistake must repay or return the same to the person who has made such payment. Implied law: If one pays money to his friend intentionally and the friend receives it without any agreement. That is called a…
Cash management refers to efficiently handling a business’s cash. The cash Management system covers a range of activities including managing bank accounts, ensuring sufficient liquidity to meet short-term obligations, optimizing cash flows, and making strategic investment decisions. Despite the importance of cash management, many organizations rely upon error-prone spreadsheets for cash forecasting methods. Such forecasts…
The important objective of cash management of an entity is that it has enough money available to pay for what it needs in the present and near future. It’s the actual inflow and outflow of cash, highlighting the business entity’s ability to meet obligations at any given time. The cash management system has several types…