Transferring Money to India Via Wire Transfer
Friday, Feb 04, 2011
There is no doubt that the concept of money
transfer through the Internet has gained impetus
over the years. India is one country that has
managed to retain the top position when it comes
to transfer of remittance. Compared to 2007,
remittance flow in India increased 15% in 2008 (a
whopping 52 billion dollars) and the same scenario
continued in 2009.
Wire transfer has become one of the most
preferred methods for sending money to India.
Initially wire transfer was conducted through the
wire or telegraph but today, fiber optic cables
are used for the same. In case of an international
wire transfer being performed by one bank to
another, there are few steps that you need to
follow for sending funds to India.
- You need to have an account in the bank
from where you to intend on wire transferring
money to India. Once you have an account number
and the SWIFT code with you, contact your bank and
apply for a wire transfer service (some banks
don’t have this application process).
You will have to fill up a form at the bank to
sign up for wire transfer. Once you get the
confirmation that the service has been activated
from your account, you need to go to the bank and
provide beneficiary information including name,
account number and contact information of the
receiver’s bank. In case you are sending
money for commercial transaction you will have to
provide the company name, invoice number and the
customer ID number also.
- You will be required to state the
remittance purpose with instructions for the bank
regarding funds investment. A particular fee is
charged for every transfer so make sure you check
for the same with your bank before making the
transfer. It is better to go to the bank and
provide information to the manager in person.
Apart from the fee, find out if your bank
provides wire tracking services. In case of
international wire transfers, there are chances of
money getting lost in between and the process of
reimbursement also take times. But if the wire
tracking is easy and fast, you will be saving a
lot of time and energy.
Role of Intermediary banks in
international wire transfer:
In case the beneficiary bank doesn’t have
its international branch it will receive your wire
transfer through an intermediary bank. A third
bank is used for clearing the funds that you will
be wiring to India. If the beneficiary’s
bank will receive funds through a third bank,
contact the bank to ask if it has a ‘no
fee’ agreement with the intermediary bank.
In case the person or company who will be getting
the funds has an account with the third bank,
don’t forget to mention it in the
instruction.
After providing the required information to your
bank, you need to determine how much fund needs to
be wired. Also find out about the time span within
which it will be getting deposited in the
beneficiary’s account. Make sure you check
your account for the availability of funds before
asking the bank to perform the transfer. Each bank
has a cut off time by which your request can be
submitted. If you do it later, the transfer will
be done the next day so save your time by
submitting the request in advance.
If you want the funds to reach the
beneficiary’s account in India on a
particular date, you will have to inform your bank
about the date. After the wire transfer takes
place, ask for a transfer confirmation from your
bank.
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