India has made an astounding progress economically in the last few years. Many who leave the country in search of better career prospects often feel the need to send money to India. In the previous year, India has surpassed China to become the highest remittance-receiving country in the world according to a UN report. When you remit to India you contribute greatly to the development of the country’s economy as the inflow of foreign money into the Indian economic clockwork means more funds for channelization in developmental projects.
DIFFERENT METHODS OF REMITTANCE
The different methods of remittance can be classified by the mode of transfer into two broad headings, manual deliverance of funds and electronic transfer of funds.
MANUALLY THE FUNDS CAN BE SENT IN THE FOLLOWING WAYS:
MONEY ORDER- You can buy a money order form the bank, certain retail stores and post offices and post it to the person you wish to pay. It is one of the oldest ways to remit to India. The receiver of the money order can either get it cashed or deposit it just like a draft or a cheque. Though it is a time consuming method, it is preferred because it is a secured way. In case it is lost or stolen it can be replaced. Also the advantage of being able to use a money order without having a bank account makes it very convenient.
FOREIGN CURRENCY CHEQUES- The simplest way to send money to India is writing cheques and posting it. The only disadvantage of this direct method is it takes a lot of time. But once it reaches, the receiver can simply go to his bank and deposit it or cash it as per his needs.
FOREIGN CURRENCY DRAFTS- This method is very similar to sending cheques from abroad. It is a method preferred by businessmen. There is no chance of a failed transaction like a cheque as sending a draft does not depend upon the balance you have in your account.
ELECTRONIC TRANSFER OF FUNDS CAN BE DONE IN THE FOLLOWING WAYS:
REMITTANCE CARD- This is like a debit card that can be used to pay for all the needs and requirements of the people in India. For using it, the person staying abroad has to recharge the card and the amount will be available for use in India. This saves a lot of time and is the most convenient option for those who are technologically sound.
DIRECT DEPOSIT- This method is the best possible option for those who transfer funds regularly to India. Here an Indian bank is authorised to withdraw money from that person’s account in the foreign bank. The money transferred can be collected by the recipient directly from the bank.
DIFFERENT METHODS OF REMITTANCE
The different methods of remittance can be classified by the mode of transfer into two broad headings, manual deliverance of funds and electronic transfer of funds.
MANUALLY THE FUNDS CAN BE SENT IN THE FOLLOWING WAYS:
MONEY ORDER- You can buy a money order form the bank, certain retail stores and post offices and post it to the person you wish to pay. It is one of the oldest ways to remit to India. The receiver of the money order can either get it cashed or deposit it just like a draft or a cheque. Though it is a time consuming method, it is preferred because it is a secured way. In case it is lost or stolen it can be replaced. Also the advantage of being able to use a money order without having a bank account makes it very convenient.
FOREIGN CURRENCY CHEQUES- The simplest way to send money to India is writing cheques and posting it. The only disadvantage of this direct method is it takes a lot of time. But once it reaches, the receiver can simply go to his bank and deposit it or cash it as per his needs.
FOREIGN CURRENCY DRAFTS- This method is very similar to sending cheques from abroad. It is a method preferred by businessmen. There is no chance of a failed transaction like a cheque as sending a draft does not depend upon the balance you have in your account.
ELECTRONIC TRANSFER OF FUNDS CAN BE DONE IN THE FOLLOWING WAYS:
REMITTANCE CARD- This is like a debit card that can be used to pay for all the needs and requirements of the people in India. For using it, the person staying abroad has to recharge the card and the amount will be available for use in India. This saves a lot of time and is the most convenient option for those who are technologically sound.
DIRECT DEPOSIT- This method is the best possible option for those who transfer funds regularly to India. Here an Indian bank is authorised to withdraw money from that person’s account in the foreign bank. The money transferred can be collected by the recipient directly from the bank.
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