Best Ways To Send Money Internationally – Forbes Advisor INDIA

Many people travel abroad in search of opportunities and careers. Students enroll at universities and colleges abroad. The question everyone asks is how to transfer money internationally and what the fees might be.

In recent years, there has been a significant increase in remittances as the number of people settling abroad has increased. Read on to learn the best ways to send money abroad.

Overview: International money transfer

With international money transfers, you transfer money directly into a bank account of an individual or a company abroad. This can easily be done through a bank, international money transfer service, individual agents or online platforms.

In general, money transfers can take days and are exchanged offline and digitally through multi-currency online banking applications. There are many ways to transfer money abroad from the comfort of your own home.

The Reserve Bank of India’s Liberalized Remittance Scheme (LRS) regulates the maximum amount of remittances, which currently allows all residents, including minors, to remit up to 2.5 lakh each fiscal year.

Best ways to send money internationally

Below are the ways you can send money abroad from India

International money order

The money order is the oldest preferred form of money transfer. All you have to do is deposit the money you wish to transfer into your bank account. The amount can easily be redeemed at any check cashing point. This method is simple and inexpensive.

Online money transfer

Online money transfer is the method used by majority of people in India today. It’s the easiest way to transfer money abroad. You will need the beneficiary’s account information such as the SWIFT code or the target bank’s IBAN, IBAN, account holder details, etc. This process seems simple, but it also involves a lot of overhead as it cuts out intermediary banks.

Online transfer

Online bank transfer is the new form of international money transfer. They involve intermediary banks, so processing fees are low and affordable. It involves the bank or company sending money and contacting the beneficiary’s bank to deposit the money. The process is secure and some examples of wire transfers are Western Union and Book My Forex.

Cashier’s Checks or Cashier’s Checks

Cashier’s drafts and bank drafts are readily available from various banks across the country. You need to go to the bank branch and buy the bills and checks in the currency of the place you want to send money to. They are inexpensive but take a long time to reach the beneficiary’s account. This is secure as it keeps track in case the bill of exchange or check does not reach the specified destination.

Steps for an international money transfer

Step 1: Verify Customer ID

Customer identity verification is the first mandatory verification while international money transfers are required by law under financial regulation. Most of the time, the ID is checked once, especially for first-time users, but it also depends on which agent you choose to transfer the money.

Step 2: Exchange rate

You must set an exchange rate. Tariffs vary by market and are constantly changing. Once your ID has been verified and you’ve decided on a transfer method, you should immediately set the exchange rate.

Step 3: Transfer payment

Once you lock the exchange rate, all the details related to the international money transfer will be emailed to you. You will also be informed for a predefined period of time, which is usually one to two days. During this period you must make the payment for the transfer, otherwise you will lose the established exchange rate. Once this is done, the order will be processed.

Step 4: Money is converted and sent

The bank or company you select will convert your money into the desired currency and transfer it to the target bank account. The processing time depends on the chosen intermediary and also on the intermediary banks. In India, it usually takes three to seven days for an online money transfer made by major banks to be credited to the target bank account.

Factors to consider when deciding on an international money transfer

There are a few factors you need to consider before sending money abroad from India

exchange rates

The most important and important factor is the exchange rate. The exchange rate is constantly changing; It is the value of one currency for conversion into another currency. You can determine the exchange rate with our currency converter.

overhead

When transferring money abroad, you may be charged various overheads such as conversion tax, service tax and transfer fees. You must verify all of this before making a transfer.

transmission speed

The ideal time for a money transfer is around 48 to 72 hours. If you choose to transfer by check or draft, this can take up to a week.

Frequently Asked Questions (FAQs)