Non-resident Indians send money to their loved ones in India for numerous reasons like investing in real estate and Stock Market. This boosts your family’s household income. However, the problem they find when sending money to India is the massive charges. Every financial institution that wires money anywhere across the globe charges a fee.
Sometimes, these companies declare the charges in advance, and you know how much you need to pay for the transfer. Other times, you are forced to pay additional costs owing to the exchange rate. While you cannot avoid the transfer fee, you can opt for the best service provider when sending money to India.
Wire transfers
It is the electronic money transfer to India from one financial entity to another using the SWIFT method. It is the means to send cash internationally. They are fast, efficient, and secure. Wire Transfers can get done via banks. Depending on the amount you send, the bank levies a fee. The exchange rate depends on the rate banks offer. The recipient receives the money instantly.
Online money transfer operators
This is the ideal option if you are looking for convenient, simple, and regular ways to remit to India. These transfers are online, and the charges are lesser than Wire Transfers. Banks have Remittance services through Internet Banking. It is easier, quicker, convenient, and spreads across wider boundaries.
International money orders
It is a common way to send money, especially in remote places. They are affordable, fast, and safe. Money orders get deposited to your account, the recipient’s account, or cashed at several cashing locations. If the recipient does not have an account, or you want to send a small amount, then money orders are the best. The funds are made available in a day. You get the best exchange rates here, and Remittances take around three to 30 days.
Foreign currency cheques or demand drafts
The traditional method of transferring money to India is writing a cheque in the designated foreign currency and email it to the beneficiary. The moment the recipient deposits the cheque in their bank, it gets deposited within 21 international working days. You could also deposit funds into the account via the demand draft. Charges depend on the financial entity and account type you transfer to.
Online wallets
Another popular way is the new-age online wallet system. Users can electronically transfer the amount to one another, provided the sender and receiver have an online wallet. Currency conversion fees are levied for cross-border payments. These charges vary based on the source and destination of the country.
It is essential to conduct thorough research and evaluate the options accurately. Look out for hidden costs, tax implications, and best exchange rates, and remain updated with appropriate transfer methods.