Sending money to India is becoming easier by
the day as banking regulations are relaxed and you
can now transfer funds online from a foreign bank
to an Indian Bank without too much of red-tapism.
The key enabler has been the automation of many
Indian banks and a phenomenal increase in the
number of people who have started opting for
online banking in India.
Transferring money online for the first time
requires some safety measures to be put in place
so that your money is in safe hands and reaches
the right account. Most banks are likely to give
you a list of Do’s and Don’ts which
must be read if you are transferring funds for the
first time. Here’s a set of 5 top
security tips which are going to be useful when
you begin using online transfers:
1) Do not use a public terminal to do online money
transfers (to India or anywhere in the world). The
simple problem is that you might leave behind a
trail of user name and passwords which can be
misused by another user. Preference should
be given to use your own computer or one which is
within a secure network/area. Double check the
levels of online security encryption offered by
both your and the receiver’s bank and make
sure that it is at least 128 bit.
2) Choose the right mode for online transfer
especially when it comes to the recipient’s
bank. In fact, you should have the recipient check
that his/her bank is geared to receive online
payments. Can you imagine the hassle of sending
someone an online money transfer and the person
not able to check or accept it! Apart from banks,
you can also choose third party online money
transfer companies such as PayPal, Western Union
or similar. They operate slightly differently and
require the recipient to accept the payments as
well.
3) Test-drive and be safe! Don’t get me
wrong, I am not talking about cars. Test-drive
online money transfers by sending a small amount
to check you and the family member receiving the
funds understand the process. This is a low-risk
activity and one which acts as an excellent
learning tool when it comes to transferring money
online.
4) When in doubt, don’t transfer money
online. I am assuming you would have followed the
advice for a trial online transaction. If there is
any hiccup in the process, do not use the online
transfer method right away for larger amounts.
This is more of a preventive measure rather than a
safety tip. The temptation of following the same
process again might be tempting but take some time
and understand the reason of the problem before
you opt for you opt for the same process again.
5) Keep proof of the online transfer even if it is
just an email notification. Most banks offer you
and the recipient SMS notifications as well. Sign
on for this service (it is usually free) and
utilize it to track the transfer. Email
statements of the transfer also help in tracking
back the transaction details should there be a
problem at either end.
Apart from these key tips, you can also ensure
that you have some coverage from the bank on
counts of fraud should that happen. Though chances
are slim (electronic transfers of money is a
common phenomenon globally) it helps to play it
safe.
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