| There could be many reasons for you to send
money to India: remittance to parents, ailing
parents, gifts, relatives birthdays, buying
property, investing, weddings, education or just a
monthly remittance.
Even though previously the options were sparse and
one had to use private money exchanges, now a days many
new services and companies are now offering Money
transfer services to India from across the globe. Wire
transfer through the banks or Western union are no
longer the only options available, there are various
other ways to do so and send your money fast to many
parts of India .
| Sending Money to India |
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Sending money to
India / Transfer Money to India
Below are some
methods used commonly to transfer money to India.
Some tips for sending money to India are USA
specific, but can be generalized for all NRI's and
overseas Indians.
Ways to Transfer
your Money
Most popular ones
include:
Cash
Transfers Western Union &
MoneyGram
Money
Orders U.S. Postal Service
& Banks
Banking
Transfers Checks, Foreign Drafts
& Wire Transfers
Fees, procedures, ease of use, speed and the
locations of money transfer agents differ from company
to company so please do a thorough check before taking
the plunge.
1.Banks Wire/SWIFT/Telegraphic Transfer
(TT) is a secure money transfer method from
bank to bank. Depending on the country in which the
sender is located the bank charges vary . Telegraphic
transfer charges can be as high as US$45 for
sending US$50.
Draft/cashiers
check in any major currency (US Dollar,
Japanese Yen, Euro, Pound Sterling) sent by registered
post is the cheapest option for senders in most
countries. Nationalized banks in India charge a small
commission + postal charges for encashing the
draft and are the preferred for encashing low
value cheques/drafts.
2.Citibank Rupee Checking Account
:
Offers attractive options for quick transfer
of money to India. You may need to open an account with
them first for using this service.
Bank Check/Cheque: This is
one of the best ways to transfer money to India if you
are not in a hurry. You usually need to have a NRE/NRI
account in India and give your near and dear ones
authorization to operate that account. Usually all banks
handle NRI accounts, if the bank near your house in
India does not handle NRI accounts then you are banking
with the wrong bank! Send a check/cheque (just your
regular bank account check/cheque) in your name to the
authorized person and they will deposit it in your
account. They can now withdraw the money without any
hassle. Suggestions on what to write on the check to
avoid any misuse
1.Cross the check "A/C
Payee Only"
2.When you write the date on the
check/cheque use the correct format for "Month date,
year"
3.Don't just write your name on the
favour/favor to line. Instead include your bank name and
account number.
This way your bank is forced
to deposit the money to your account only
Pros:
Low commission charges
Cons: Takes about 3 weeks
for your check to get realized/
encashed.
2. Bank
Draft: Usually, a $10 service fee (in a US Bank) is
involved.
State Bank Of India: Money
Remittance From USA or other overseas locations to
India
3.Cable Transfer: Takes
about 3-5 working days. Service fee is usually quite
high.
4.Wire Transfer: This could be same as
cable transfer. Some bancks such as the Nations Bank and
Commerce Bank charge nominal amount for a wire
transfers. It just takes minutes to do it and the money
is in your account pretty fast. A service charge from
the bank in India may apply.
Demand Draft costs a lot more, instead sending by
MoneyGram, Western Union may be cheaper.
Western Union (1-800-355-6000) or MoneyGram (1-800-MONEYGRAM). These
companies provide money transfer facilities. Advantages
are that this is very fast and you can arrange the
transfer over the phone using your credit card.
Disadvantages are the relatively high commissions,
restricted areas of operation in India and the fact that
agents accept cash only (credit cards cannot be used if
you go to an agent; commissions are lesser if you go to
an agent rather than use your credit card over the
phone). Call the companies for more details (their
web-sites are not very useful to find charges, areas of
operation, etc). Western
Union - is one of oldest money transfer services
but their charges are quite high. This service is
simple, fast and reliable but the exchange rate can be
lower than that for wire transfer/draft.
Money2india.com
They can send money to any bank in India, or deliver
it by Demand Draft. You can wire money or transfer by
ACH. You can send to various types of accounts (NRE ,
NRO, local etc)!
www.cash2india.com
Provides money transfer services to
India via debit account, credit card, PayPal or
bank account from anywhere on the world.
http://www.xoom.com/
Xoom one of the most convenient money transfer
services to India.
Sendmoneytoindia.com
Claims to
be Cheapest way to Transfer money to Indian
Cities
Some other popular services:
Money2India: from
ICICI bank.
( ACH/direct debit for USA bank
accounts)
But before you choose the money transfer service, it
is important to understand the basic concept and its
mode of operation.
All other traditional way of Money transfer is
already mentioned on this website
Factors to look for verifying
the company :
- Credibility: The name of the
company and its credibility.
- Fee: What are the charges per
transactions
- Any additional charges if mode of transfer is
Credit Card ? or if the beneficiary is other then
yourself? Or if the delivery mode is a Draft?
- Hidden Charges
- Conversion Rate : This is one of
the most important and catchy thing which one should
definitely pay attention to, as you many see a low Fee
but eventually end up paying more on
conversion/exchange rate. Will the exchange be fixed
upfront or will it vary till the money is actually
encashed?
- Customer Support :
How is the customer support, is there some
one who can talk to in case you need help?
- Toll free number ? example :
ICICI money to India has a toll free number.
- Time to deliver : How long does
it take to deliver?
- Is the transaction secure?
If urgent, do a wire transfer/ or use western
union.
If you want to send it on a regular basis, you may
use your personnel check and send it by post. This may
take some time for the beneficiary to deposit and get it
cleared but you there is no need to use any money
transfer service and may save on Fee.
You can also provide post dated checks to the
person/party, and ask them to deposit in their account
but ensure that time you have funds available in your
account well in advance before the actual date of
deposit of check..
These are some of the ways, for people who send
money to their parents in India on regular basis. Also
for those who are paying some property installments.
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