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
Bitcoin: It becomes a valuable tool for serving the sector not covered by banks yet. As the technology improves and it meets regulatory requirements, the use of Bitcoin increases. It is the best way to manage frequent money transfers of small denomination. The industry will grow phenomenally by covering the unexplored niche.
Alternate money transfer: It is a typical “banking by phone” transfer service that doesn’t have the limitation of using Smartphones. In countries where more concentration of normal handsets prevails, the method becomes quite useful. It is popular in India, and the government is also promoting it by offering license to payment banks.
Online transfer, the fastest method: If you want to transfer money in the fastest manner, nothing is better than online transfer. Money gets transferred in minutes using this method. Online transfer agencies follow high levels of security norms to make the transaction safe and secure.
Wire transfer is also quite effective: You are supposed to go to the remittance agency when there is a need for money transfer. However, it is not a fast and instant medium. It sometimes takes a few days to get the amount credited.
Pay Pal is reliable: Though it is a reliable and widely trusted medium, there are charges for withdrawing money. It is free for the sender, though. PayPal has become popular in the recent years because people use internet quite frequently nowadays. Therefore, they find it incredibly useful and easy.
It is possible to send money directly to the receiver’s account: Online transfer makes the transaction directly to the bank account of the receiver. It removes the need for a mediating agency. Not only it reduces the cost, but also saves from the risk of exposing confidential monetary transactions to a third-party.
It makes audit compliance and tax calculation simple: Since online transfer takes place in the account directly, statutory reporting and auditing become hassle-free. Since tax and other service charges get deducted at source, there are no audit observations.
Good service providers offer stringent quality checks: When people use a reliable service provider, it is the best way to transfer money to India from the US. A seasoned operator validates the transaction before approving. Hence, there is a negligible probability of fraud.
It supports all varieties of money transfer: Individuals and businesses can send or receive money internationally using the online method. Thus, it is a versatile and flexible mode of money exchange.
Money transfer takes a lot of time if you use the traditional methods of cheques. It could take 30 days or more to get the money deposited in India. Normal wire transfer is error prone. The common modes of transferring money to India from US include bank drafts and cheques. You need to choose the best and safe mode to transfer your money to India. Selecting the trusted online money transfer services is also important.
When you transfer money to India from USA, the best way is through power transfer and e-transfer modes. It is the fastest and easiest way to deposit the money safely into the state-run banks like State Bank of India and private banks like ICICI Bank, HDFC Bank and Axis Bank. You need to select the trusted foreign banks carefully to send money online. It is necessary to read the reviews and ask the friends and colleagues before entrusting the money transfer to a particular bank from US.
How to make online money transfer
RBI has set some guidelines and rules for Online Money Transfer to India from USA. In some instances, the online money transfer is restricted for personal remittance. If you are looking to send money to your loved ones bank account for investment, buying a property, paying tax, or other needs, selects the best transfer services at the current exchange rate and for lower transaction fee.
If your loved one is in urgent need for funds to pay tuition fees, the best option to send the money to India is through NEFT. It is the safe online money transfer and usually takes 24 hours to 96 hours. You can approach the connecting bank for direct transfer to the bank account in India.
ACH Transfer Mode and PayPal
You can also opt for ACH transfer to India. It takes up to 4 working days to get the funds credited to the bank account. It will not charge any extra fee to send money to your relatives in India.
You can also send money using PayPal mode. The sender need not pay for online money transfer here. However, PayPal charges the recipient at 3.9% for each transaction.
Fee for Online Funds Transfer
If you want to send $1000 to India from the U.S., the bank collects $1005 that includes a fee of $5. An amount of INR 63,000 gets deposited into your loved one’s bank account in India. You can transfer the minimum amount of $1000 to India. The exchange rates are updated between seven and 9 AM every day morning on SBI California website. If you transfer money after this time, you will take the day exchange rate.
Every year, millions of dollars are recorded as remittance worldwide. With the benefit of technology, there are plenty of ways to send money home. With so many options available, it is very important to make the right option to avoid an extra fee to transfer money. There are some basic factors to be considered while transferring money. This way you can use the optimal method to transfer money to anywhere in the world.
Mode of transfer
The aspects to consider while choosing a money transfer mode are;
Location of the receiver and the sender
Availability of the technology and awareness levels of the same
Affordability and time availability
Taking the above consideration, one can select a medium that suits them well. A simple process of sending cash is through money transfer, its the oldest methods of money transfer. The receiver will get the money by the transferrer or can collect it directly. The next option is bank transfer where money can be transferred easily to the recipient’s bank account. Today, many leading international banks are tied up with money transferrers. The easiest way to transfer money in just a click away is through online. Many websites have the facility to transfer money to their credit/debit or bank account payout. Send money to India without any difficulty by the means of technology
2. Cost of transfer
The cost of transfer totally depends on exchange rates, the commission charges levied, mode of transfer etc. And they will vary depending on other value added services and on the service provider’s network. Simply put, at the end of a transaction, calculating the money the recipient receives which will give an idea of the transaction cost. While getting a particular type of money transfer to India, one should be well informed about the exchange rate and the fees.
Before transferring money, it is always good to weigh the options available. You can understand the pattern easily by comparing the exchange rates. While one service provider might have state – of – the art technology, another might boast of having a wide network to transfer money to India. Hence, choosing accordingly and understanding your need is very crucial.
Always remember to ask for a receipt for a record of the transaction at the end. This will act as a reference and authenticate for future purposes.