BANKING AFFAIRS

Detailed explanation-1: -Notes: The rupee drawing arrangement (RDA) is the most popular channel of remittances which accounts for 75.2 per cent of remittances, followed by SWIFT (19.5 per cent), direct transfers (3.4 per cent) and cheques and drafts (1.9 per cent).

Detailed explanation-2: -The rupee drawing arrangement is a mechanism set up by the Reserve Bank of India (RBI) for the transfer of personal remittances from abroad. In most cases, the sender and the beneficiary are both individuals. Remittances through exchange houses for facilitating trade transactions are also allowed up to a certain limit.

Detailed explanation-3: -Rupee Drawing Arrangement (RDA) is a channel to receive cross-border remittances from overseas jurisdictions. Under this arrangement, the Authorised Category I banks enter into tie-ups with the non-resident Exchange Houses in the FATF compliant countries to open and maintain their Vostro Account.

Detailed explanation-4: -RBI Guidelines for Inward Remittance You can send money to India only to pay for medical treatment, education, travel expenses, investments, financial support, donations, living expenses or as a gift. 2. For every inward foreign remittance, the recipient bank must issue a Foreign Inward Remittance Certificate (FIRC).