There are many angles to consider when sending
money to India. Top issues are convenience, good
rate of exchange, security and of course the
taxation angle. In this article, we discuss some
very easy ways to transfer money and all of them
tend to meet the criteria we just mentioned!
1) The easiest method to send money is by
cash or travellers’ cheques
but is suitable when the amounts are small and can
be changed easily at a foreign exchange counter by
you. Do NOT send cash via post or non-INR
currencies as your family members cannot get it
converted officially. Using cash/travellers
cheques is a common practice with people sending
money to India whenever someone is visiting India
but cannot be relied on for as a regular
method.
2) Sending a Personal Check
is a safe option but takes as much as
thirty days to cash it in a local bank in India.
Apart from that, the rate of exchange is quite
poor and is thus not preferred by many expats
remitting money in India.
3) Cashier's Check (foreign
currency and INR) is easier to cash in than a
personal check but the rest of the process of
relying on the postal system is the same. The one
advantage with this method is that in an INR
cashier’s cheque you are aware of the rate
of exchange being offered to up when you go to get
the cheque made at the bank.
4) Wire Transfer has gained
tremendous popularity as it is a method very
commonly used by businesses and most banks are
geared to handle the process. The charges for wire
transfer are also quite nominal now a days and it
makes sense to use it when transferring large
amounts.
5) Money Transfer Services
have been made popular in the last five years or
so especially with the launch of global money
transfer companies in India. This method is most
suitable for recipients who not have a regular
bank account.
6) Credit Cards have also
become a good way to provide financial support to
your family in India as you can pay the bills
online and get the statements online as well. As
more and more establishments accept credit cards,
this is a trend which is here to stay. The only
downside is that you need to keep a track of the
due dates and missing them might result in paying
interest to the tune of 24% and above.
7) An alternate to credit cards are
ATM Card which can be linked to a
bank account which transfer money for your
family’s use. This offers more flexibility
to the family and can also be managed quite easily
with easy online access. All top banks in India
offer ATM and online banking facility today and
that has resulted in so many options when it comes
to transferring money home.
It is advisable to use a combination of these
methods rather than rely on just one of them
(remember the old adage of not putting all your
eggs in one basket!). Special occasions,
emergencies or any requirements can easily be
managed by using one of the online money transfer
methods.
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