International money transfer tips every NRI should follow
Reading Time: 3 Minutes
Key Takeaways: Transferring money to your loved ones in India? Read on to find a detailed checklist on online money transfers to find the best ways to send funds home.
As an NRI, you may need to send money to India frequently and you would want the process of doing so to be quick, simple, efficient and affordable. The best service is one that lets you send money anytime, anywhere, from your home, through a smartphone and in just a few minutes.
We have outlined what you need to consider to ensure that your remittances are shared quickly and seamlessly.
Money transfer checklist for NRIs
- Exchange rates: The biggest differentiator between service providers is the exchange rates. Choose a partner that has the most transparent and competitive rates in the industry. You can also look for premium banking services that offer preferential rates.
- Taxes and conversion fee: Some financial institutions charge service taxes, conversion fees and receiving charges in India for every transaction. Do check for hidden costs before you send money overseas.
- Remittance partners list: Many banks partner with their foreign counterparts to facilitate international money transfers. You should ask the bank’s customer support for the list of financial institutions they have partnered with in foreign countries and keep this handy.
- Transaction speed and time: To make sure the beneficiary receives the money on time, check for how quickly the transaction will be completed. Ideally, you want a bank that takes the shortest time possible. Depending on your mode of transfer, transactions can take from a few hours to a few days to complete.
- Cut-off time: Banks also have a cut-off time for different countries. If you can initiate an international money transfer successfully before the cut-off time, then your transaction will be completed within the same day for most countries. Ask the customer service for the cut-off time for each country.
- Currency list: Check if your remittance service provider can cater to the currency you want to transact in.
- Past exchange rates: Check the exchange rate for the day before you make a transaction as the slightest fluctuation in the rate can result in significant gains or losses in rupee terms.
- Transaction limits: Banks have limits on the money you can send abroad. Also, some banks have limitations on the number of transactions in a year. Know the limit before making international transfers.
- Beneficiary details: When you remit money to India, banks will ask you to add the details of the beneficiaries. Transactions can be denied if you provide wrong information about the recipient’s bank account number, name, address, bank’s branch name and IFSC (Indian Financial System Code) number. Also, the SWIFT code is required in some cases. Verify the details and keep it ready before any transaction.
- Holidays and working hours: Banks do not conduct operations on holidays. So keep a calendar handy and make sure you plan accordingly.
- Regulations: Above all, understand the rules. The Reserve Bank of India has a set of rules that govern the transfer of money, be it for family, investment or any other purposes.
Final Note: Sending money to India is a relatively easy process if you have the right banking partner. Using our checklist can help you zero in on the right one.
*Disclaimer: This article has been shared purely from an information perspective and we recommend you conduct extensive research before proceeding.