In this article, we will discuss what is the remitter meaning, role, and responsibilities in the context of sending financial transactions.
This article is part of our free series on banking, ranging from how to open accounts as a foreigner to NRI bank account opening, and everything in between.
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Table of Contents
Remitter Meaning in Bank
Remitter meaning is the sending party in a transaction. The remitter is responsible for initiating a transaction with the receiving party. Depending on where you are banking in the world, the receiving party also may be known as the remittee, beneficiary, or recipient. Not surprisingly, you need both a remitter and a remittee to complete a transaction.
That said, the term remitter can also apply to the financial institution sending the transaction. More specifically, it may be known as the remitter bank. This bank is the financial institution where the bank account initiating the transaction is held.
On the other end of the transaction is the receiving bank, which may also be referred to as the remittee bank. Though in most cases, remittee is used to refer to the individual account holder instead of the financial institution.
Importantly, both individuals, operating businesses, and entities can be remitters or remittees. In other words, anyone individual or entity that has a bank account can participate in transactions and fulfill either role.
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Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into the meaning of remitter in bank accounts. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Is Remitter the Sender?
Yes, remitter is the sender and the remittee is the recipient in a financial transaction. Likewise, the sending banking is the bank and the receiving bank is the remittee bank. Of course, the recipient is also known as the beneficiary. Importantly, both the remitter and remittee can be either natural persons or corporate entities.
What Does Remitter Mean?
Remitter means an individual or business that is sending a financial transaction to another individual or business through a bank. Additionally, the sending financial institution is often referred to as the remitting bank while the receiving financial institution is often referred to as the remittee bank. In certain instances, intermediary financial institutions may be needed to complete the transaction, these financial institutions are referred to as correspondent banks.
Who Is Remitter and Remittee?
Remitter refers to the individual that is sending payment to the remittee. In other words, remitter is the sending party while the remittee is the receiving party in a transaction. These terms commonly relate to sending and receiving of transactions between financial institutions.
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