NRIs worldwide send money to their loved ones for many reasons ranging from investing in real estate and stocks to helping raise household income for their families. As per the Ministry of Overseas Indian Affairs (MOIA), roughly 35 million Indian origin individuals send money to their Indian families and friends. To transfer money to India to their loved ones in their country, NRIs and expatriates rely on reliable, fast, and cheap services and look for transfer services through which they can transfer as much money as possible with fewer transaction fees or charges.
The Ministry of External Affairs report reported that, in December 2018, there were 31 million NRIs and PIOs residing outside India. Also, the United Nations Department of Economic and Social Affairs has announced that in 2019, out of 272 million migrants worldwide, India was the leading country of origin for foreign migrants with 17.5 million diasporas.
Different ways of transfer money to India
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As an NRI, at some point, you can consider many reasons for money transfer to India while living outside the country. Numerous ways are available for sending cash to India, from online transfers to conventional payment systems. It is essential to conduct a few investigations and make sure that you make the best choice for sending money. Some ways to handle your NRI investments abroad are available here:
1 Transfer online
The fastest way to transfer money to India is by online transfer. All you need is internet access, and use local banking services to move money to an Indian account. You may need information about the account holder or receiver’s name and address, details about the financial institution to which the money you want to send, and the recipient bank’s IBAN or SWIFT code. The suggestion of this method is to provide if you transfer funds regularly. You can escape the high banking costs, and you can do the transaction from the comfort of your house.
2 Transfer through ACH
ACH stands for Automated Clearing House, which is a distribution mechanism for electronic funds. In the United States, ACH is regulated as per the operating rules of The National Automated Clearing House Association (NACHA), which regulates the inter-bank clearance of electronic payments and transactions between participating financial institutions.
If you send money via ACH transfer from the US bank account, then the receiver bank receives the sum transferred in 4 working days that can be picked up by the receiver the very next day. There are no additional costs associated with ACH transfers, visiting banks, or issuing checks. It helps save both money and time.
3 Personal Checks
Another way to transfer money to India is by sending out a personal check. It is one of the best choices because the payment can be made to a particular person, and no one can cash it out except for someone with his or her ID. Any check which does not hit their destination may also be canceled.
Even, You should know that the employee might not be able to cash the check immediately, as a bank verification of the deposit is necessary. In addition, the exchange rate must be subject to an extra charge.
4 PayPal
PayPal is known as the largest provider of electronic payments. Through PayPal, you can quickly transfer money from one account to another without having to use your credit card or bank account directly.
The sender does not have to pay for the transaction, but the recipient often has to pay a small fee. Another great benefit is that PayPal is mobile-friendly, making it much easier to move the money.
5 E-mail Money Transfer
Transfer of money via e-mail is an electronic money transfer. There are no additional charges associated with that form of transfer of capital. It’s like a bank transfer to a bank. The sender doesn’t need to have the details of the bank of the recipient. The sender must log in to the website of his bank and fill out a form. The form does not ask for so many details, and the sender must provide an e-mail id of the receiver and answer a security question.
The sender shares only with the receiver the answer to the safety question. The bank sends an e-mail to the recipient, and the recipient has to answer the security question correctly to verify his identity. When he correctly answers, he will be forwarded to the website of his bank, asked for his account information, and complete the transaction. That method takes one day if the bank of the recipient is in the bank of the sender’s list. If not, then it takes 3-5 days to transact.
Most people doubt that the transfer of money via e-mail is not secure. No confidential information is shared through e-mail. If the e-mail goes to the wrong recipient, to access the money, he or she will need the correct answer to the safety question. The name e-mail transfer means the transfer of money is initiated and notified via e-mail.
6 Wire transfer
A wire transfer is known as a traditional method of transfer money to India, as it is the oldest system and has existed for over 50 years. Wire transfer is one of the most growing forms of making a transfer of money. The sender must go to and give the money to an agency such as a bank or other agencies or branches of the organization such as Xoom, Western Union, or Remit2India.
The wire transfer service gathers information from the sender about the bank of the receiver and recipient or any other service. The sending institution initiates the wire transfer after the information has been collected from the sender, and sends the message to the receiving institution. This process takes some days to complete.
7 International money order
International money orders are a free, inexpensive, and quick way to money transfer to India, especially to remote locations in India. You can deposit the money orders into your bank account or cash them in several check cashing locations. Many may need an identity to cash the checks. Purchasing is simple, and no checking account is needed. If the total amount is small, it’s an ideal way to send money.
8 Bank Drafts or Cashier’s Checks
Bank drafts or cashier checks both are accessible at any bank. Both facilities are subject to a fee, and it may take some time to cash. The cost of purchasing a draft bank is higher than that of money order. This method of transfer money to India is traceable if checks or drafts fail to reach the destination. They are more cost-effective but time-consuming.
Final words
All above are the various ways of transferring money to India. If you are facing a problem in transferring money, then you can select any one of the above by understanding then fully. Choosing more is still good. The way of transfer depends on the preferences of the sender, such as the amount of money transferred, the speed of transmission, whether the money transfers are routine or one-time transfers, transfers costs, and the convenience of the recipient. Finally, the sender and the receiver must communicate well to determine how to send money and which way should be followed. Also check out the guide on transfer money internationally.
