With the inception of offshore operations of
many foreign IT companies in India, the volume of
inter-country money transfer is also on the rise.
Moreover with the transfer of personnel from one
country to another, one of the foremost things
that concern expatriates is quick and smooth money
transfer options to India. As different currencies
exist in different countries, it is imperative
that you know how to efficiently convert currency
when you transfer money to India.
Various institutions offer different exchange
rates while converting foreign currency to Indian
rupee. Almost all money transfer institutes will
inform you of the exchange value adopted by them.
It is best that you check out various institutes
and finalize on one that offers the best exchange
rates. Some banks are notorious for offering
customers poor currency exchange rates. If your
money transfer needs are regular, then you might
want to look for alternative options to transfer
money to India.
It is also not unusual to lose some money while
transferring funds to India via transaction fees
that are charged for the currency transfer.
Transaction fees might be very heavy during
currency conversions when transferring money to an
account in India. Apart from transaction fees,
service charges may also be levied on currency
conversion, causing people to avoid high street
banks for such transfers.
A transaction fee is often a percentage of the
amount you transfer which is taken by the service
providers to facilitate the transaction whereas a
service charge is a surplus amount charged of you
for services rendered, irrespective of any
transaction fees.
Citibank and SBI facilitate bank draft in rupees
making it easier to encash it in India. SBI charge
US $10 for draft amounts less than Rs 50,000
whereas Citibank’s charges amount to around
$15. Money orders levy a service charge of 50 to
99 cents based on your location in the USA.
Western Union also charge service fee along with a
transaction fee but that entirely depends on the
amount and the location to which money transfer is
sought.
It is best to take a look at the fees charged by
the money transfer facility and work out the best
option available to you, keeping in mind exchange
rate during currency conversion as well as fees
charged by the facility.
You can also get personalized services which are
offered by many foreign exchange brokers. They
give you personal attention and offer you services
that are very satisfactory. Their expertise in
currency conversion rates help make their services
better. You may also be able to negotiate a better
rate, depending on the amount and the frequency of
your money transfer needs.
An important point to remember when transferring
money to India is to make sure that you do not
fall a victim of fraud. Use legitimate transfer
methods with the help of genuine agents whether
you are going for a one time transfer or multiple
money transfers.
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