Remittance refers to the act of transferring or sending certain amount of money by one party to the other.
The term inward remittance indicates transfer of funds from one account to another either domestically or internationally.
The transfer of funds out of the country or overseas is termed as outward remittance. For instance, if parents transfer funds from their account to their children’s foreign account in order to support them, that becomes outward remittance for the parents. Outward remittance is applicable for the countries that send money whereas inward remittance is applicable to those countries that receive the same.