The business of sending money across borders achieves great heights

Technology has changed the face of banking completely and we have the bestways to transfer money to India in the form of electronic remittance. It is fast, smart and highly safe. Not only big banks but even small local banks also offer the facility to their customers. The virtual version of money transfer let the banks sweep out and sweep in huge loads of money without handling a single currency note. Looking at the volumes of money transfer to India, it is the need of the day to find out effective and fast methods of transferring money.

In the world of electronic money transfer, the sun never sets. When the night falls in India, millions of rupees get transferred from the brighter side of the globe.
No need to go to the agent when online transfer is possible
When people want to “wire” money today, they do not need to step out of the house. Just login to an agency offering online money remittance to India and click “Transfer” button and the work is done. As more and more people use Internet and online facilities nowadays, going to an agent’s office becomes an outdated practice. Cross-border remittance conquers newer heights every year. Statistics says that the major chunk of it has been contributed by transactions of small amount, but the enormous volume makes the overall turnover huge. The major contributor is transferring money to India fromUS. As the number of people working abroad swells, the figure is expected to reach the rooftop. Unofficial estimates say that it will show an annual increase of 8 percent or more. The figures are certainly encouraging, and private agencies are ready to reap the maximum benefit from it.
Banks are reluctant to use the opportunity because they have other priorities
Since most of the banks don’t see money remittance as a lucrative business area, private remittance agents have a gala time. They offer more alluring services to the customers so that the largest share of the cake can be consumed. They offer the easiest way to transfer money to India and treat customers with utmost care. No wonder, people also give them preference. The flourishing market opens exciting opportunities for small and medium players. They can grab more customers by adding further services to the menu card.

Money Transfer Service Scheme, the amazingly simple way of money remittance to India

If you talk about easy and convenient ways of online money transferto India, the MTSS or Money Transfer Service Scheme is amongst the easy and convenient options. It allows inward remittance of money from abroad to India for family maintenance. The facility can also be availed by tourists traveling to India. They can transfer money to India using the MTS facility. No outward remittance is possible using MTSS service.
This is a joint venture of Moneygram International, WUFS (Western Union Financial Services), and Department of Posts.
What is the process?
The process of sending money online to India using MTSS is quite simple and straightforward.
  • The remitter goes to a MoneyGram location or Western Union money transfer outlet in any of the countries where the service is operational. He fills in the form and pays the money and additional charges applicable. A unique MTCN (Money Transfer Control Number) is generated by the system which acts as the Reference Number
  • The remitter calls up the payee and informs about the deposit. The Payee (receiver) goes to the Post Office, fills in a form and shows identification document. He shares the MTCN to the officer. The code is verified from the transaction record. Once the validation is done, money is delivered
  • It is one of the fastest ways to transfer money to India that doesn’t take more than ten minutes
  • Payee gets the amount in Indian currency. As per the rules, remittance of up to 2500 USD is allowed in one transaction. It is a guideline issued by the Reserve Bank of India that can’t be overruled
  • As per the rules, up to 50,000 INR can be paid in cash. Any amount above can be deposited in the account directly, or a cheque is issued in the name of the beneficiary
In spite of the limitation of maximum 30 transactions annually, it is one of the best ways of doing money remittance to India. More people get benefited by it every year.

India is leading at the remittance front, are you ready to reap the profits?
Remittance means the transfer of funds by an expatriate to his/her motherland using different means of transfer. Online, wire and mail are some examples. Remittance is not only important from the point of view of a person but from the economy of the country as a whole. Money sent by people across borders play a great role in the Gross Domestic Product or GDP of the country.
A large number of Indians work abroad. They transfer money to India on a regular basis. This is an important stream of income for many families. At the same time, it also boosts the Indian economy to a great extent.
India tops the list of remittance countries
India recorded the highest number of remittance (in numbers and value) last year. Not only it retains the top position, but there has been a record increase on YOY basis. People use different modes of remittance, e.g. foreign exchange bureau, commercial banks (private and public sector), cooperative banks, Indian Post and several commercial agents. The preferred mode depends on individual’s preference, availability, and convenience.
Money transfer to India from US showed a remarkable increase after the Information Technology boom post 1995. As the number of people working in US increased exponentially, remittance volumes also showed similar patterns.
Fall in the Rupee rate brought cheer to NRI population
Though the fall of Indian Rupee against the US Dollar is the matter of concern for the Indian economy, it is definitely a reason to grin for the NRIs. It means they get more Indian Rupees against their Dollars. In the year 2015, the fall was around 10 percent. It resulted in the phenomenal increase of 20 percent in the volume of remittance fromUSA to India.
Also, the incredible infrastructure development triggered huge investments by NRIs in commercial and residential properties. It is again a good sign for the country. It means that money coming to India in the form of Dollars will be absorbed in the Indian economy. Economic experts call it the “second independence” of India.
The government supports remittance
Since it is good for the economic health of India, the government supports remittance by offering several deposit schemes and bonds. These schemes are dedicated to the NRIs, and there are several benefits and concessions for them.
All these factors boost remittance greatly. The remittance companies lower the costs for transactions. They offer attractive incentives and discounts to grab the maximum market chunk

OTC remittance, the smart and swift way of money transfer

OTC or Over the Counter remittance is one of the preferred ways of remittance globally. Since the market has become greatly dynamic and customer centric, agents and service providers want to offer fast and effective service to the clients. As a result, OTC becomes a well-established thought.
However, OTC is a little bit different concept when we talk about MoneyTransfer to India.
What do we mean by OTC remittance in the Indian context?
In simple terms, when the agent performs transactions on behalf of the clients, it can be termed as OTC. Some experts call it assisted transaction because agents assist in making it successful. The person who wants to initiate remittance transaction need not have a mobile number or mobile wallet. Also, there is no need of acknowledging the mobile wallet opening by the customers. Customers do not play a role in the remittance process, but the agent does it on behalf of their clients.
However, the normal KYC (Know Your Customer) that rules cash outflow from the account for other transactions are applicable for OTC remittance as well. The financial services are expected to follow regulation and compliance.
Two possibilities of OTC money remittance to India
In the backdrop of the information given earlier, there can be two scenarios of OTC Remittance:
  • Agent doesn’t inform the customer about the remittance process. He uses the personal account or account of somebody else while transferring money to India from US. Sender tells the account number of the receiver and the entire process is done by the agent.
  • Agent uses a wallet to perform the transaction. He doesn’t tell anything about the wallet details or the process to their clients. The sender knows about the progress of transaction through text messages at different levels. Many times customer doesn’t even know that a wallet has been opened in his name. He thinks that the messages are from the service provider’s automated system.
OTC process outline
  • Opening of wallet on behalf of the customer is the first step.
  • Receiver’s details are required to determine the destination point. Bank name, bank account number and IFSC code are other details.
  • Money transfer process. NEFT or IMPS are the most commonly used methods while sending money online to India. IMPS is preferred, and NEFT is used as the backup process. Transactions done using IMPS happens almost instantly.
  • Confirmation is received as soon as the transaction completes.

Exchange rate affects the profitability while remitting; know about it beforehand
When you want money remittance to India, it is very much important that you gather sufficient information about the current exchange rate USD to INR. Why is it so much critical? The answer is very simple. The rate of exchange decides about the relative value of the money in India in the USA.
Why the exchange rates are fluctuating?
Well, many people get puzzled by the fact that the exchange rates are variable, and one has to know about it before remitting the money. Why should it change? Why it can’t remain fixed? It happens because the international currency trade works on the principles of demand and supply. Since currency has the highest liquidity, buying and selling happen worldwide. Trading activities happen round the clock because the markets are open in some other country even if it is midnight in your country.
Based on demand and supply, the currency exchange rates change. Therefore, you must know about it before initiating an online money transferto India.
If you are remitting a small amount, then it may not be relevant but for high-value transaction, the difference of a few cents is sizable.
What is the best way to transfer money to India without using exchange rates?
No, there is no such way where you do not get affected by the exchange rates fluctuation. All legal and valid ways of money transfer use exchange rate calculation. Experts say that one should understand the fundamentals before initiating the money transfer. It helps a lot.
Interbank rate is also known as bank-to-bank rate. It is the wholesale rate and not retail. Banks exchange the currencies using this exchange rate. The Interbank rate is always different than the normal rate offered to retail customers.
Selling rate or Sell rate is the rate that you get while exchanging the local currency against foreign currency.
Buying rate or Buy rate is the rate that you get when the other country’s currency is transferred into local currency.
When you know the meaning and implication of the three exchange rates, it becomes pretty simple for you to decide the right time for initiating money exchange. Regardless of the ways to transfer money to India was chosen by you, doing it at the right time is always important.
It is possible to get help from professional before you exchange money. They suggest the right moment of doing the same so that you get good profit. Some service providers initiate a transaction on your behalf when it is the best time.

Why do NRIs search for the best deal while sending money online?
NRIs need to send money to India online quite frequently. Sometimes, there are dependent parents in the native place, and sometimes there are financial exigencies. Some people invest in properties in India, and they are required to pay EMIs. At one side, they are worried about the exchange rates and commissions because it affects the profitability. On the other side, they are equally concerned about the security of the transaction. Everyone wants the money transfer to be fast, accurate and without hassles. With the development of technology, there are multiple ways of doing the money transfer. Each method has positive and negative factors. One should look at these factors before choosing a service.
Money transfer to India is a big business
Yes, it is a million dollar business. You search with the relevant keywords on the search engine, and there are hundreds and thousands of websites that offer money exchange services. Some of them are reasonably priced and cost-effective, and some are exorbitant. You should look for the maximum value while you send money to India. While service providers earn commission for money transfer, fluctuations in the international currency rates also add up to their profits.
The hidden cost of exchange rate forces NRIs to search for a good deal
The exchange rate is nothing but the conversion rate of your currency to the destination currency. Since the rates are not fixed, you should pick the correct time to send money. Other than the exchange rate, service providers also earn a profit by the gap between the buy rate and the sell rate. It is called “spread” in the technical language. Remember, it is at the discretion of the service provider how much spread should be charged. When they charge heavy transaction fees, the spread is levied. When they charge low transaction fees, there are hidden costs in the form of “spread”. It is the reason, NRIs look for the best ways to transfer money to India where both transaction fees and spread is marginal.
Other factors are also important
Well, the easiest way to transfer money to India should not be the slowest one. Money transfer should happen as fast as possible. The transaction should traverse through safe and secure links that can’t be hacked by malicious people. NRIs check all these aspects carefully before clicking the “Transfer Funds” button. After all, money matters!

Only the most transparent remittance operator is trusted by clients
Remittance operators that offer online money transfer to India from USA expect a great surge in the business in the coming years. There has been a phenomenal growth in the number of transactions both volume wise and value wise in the recent years. Financial experts say that the future of remittance industry is bright, but with a few riders.
It goes without saying that offering competitive rates for remittanceto India is a distinguishing aspect. According to the latest convention of remittance operators held in Switzerland in 2015, transparency will be the only way forward. As the technology becomes easily available to everyone, it doesn’t remain a game changer.
What is the meaning of transparency in this business?
Well, the term transparency is quite ambiguous, and it can be interpreted in several ways. What do the experts mean about money transfer business? As per business stalwarts, it means that the customer has to be well-informed about everything which is relevant for him, e.g. fees and charges applicable, details of service, money transfer rate, transaction time, and exchange rate margin.
Initially, it might be a daunting task for remittance operators because they do not have a system established to transfer money to India. However, it will become a routine thing after a few years as everyone will follow the same path.
It has been observed that in spite of stringent regulations, still there is a big gap between the actual cost of money remittance and what customers perceive. They get a surprise at the end of the transaction when the payout is less than expected. Business leaders feel that it is not the right way of doing business. Hence, transparency is more than required.
Remittance costs are declining every year
Statistics proves that the cost of remitting money is declining gradually. However, it doesn’t bring the profitability down as the number of transactions shows an increasing trend. The economy of scale governs the sector. New age technology and innovative techniques simplify the procedure, and more people find it practical to remit to India.
The use and popularity of the Internet increases worldwide and penetration of handheld devices makes the remittance fast and convenient. How to send money to India is not a daunting question now.
Experts say that user education is still a big challenge. People don’t know about several charges while initiating money transfer and often receive a “bill shock”. Use of intricate financial jargon confuses them sometimes. All these issues will have to be eradicated by making the process fully transparent. It will be the only success mantra!