India is the leading recipients of remittance globally with more than 25 million people of the Indian diaspora sending money to India. The total money remitted to India in the year 2015 was around $68.9 billion contributing to 4% of the gross domestic product (GDP). Remittance to India has grown exponentially since 1991 and is on a constant rise which is expected to grow further more in the next decade.
The regulatory body for remittance in India, FEMA (foreign exchange management Act) of 1999 allows a NRI (non-resident Indian) and PRI (persons of Indian origin) to open and maintain any of the following account:
• Non-resident ordinary rupee account (NRO)
• non-resident external rupee account (NRE)
• foreign currency non-resident bank account (FCNR)
There are a number of ways by which people remit to India. The most commonly used method is the wire transfer offered by almost every bank and some private money transfer agencies. Other ways of remitting money to India are through bank drafts, money orders, ACH transfer, personal cheques and online transfer. No matter which mode you choose to remit to India, listed below are some of the points that you should consider before sending money:
• Never forget to check and compare the exchange rates before sending money. Since the currency value differs, a minor difference in exchange rates can be huge in rupees. So you compare with all the agencies before remitting so that you get the best value for your money and the recipients receive the maximum of what you remit to India.
• You should keep a check on the news and international market trends. If something major is predicted to happen in near future such as demonetization in India or brexit in Uk, it is better to avoid those period and let the dust settle down before you remit to India.
• Selecting the right mode of transfer plays a key role. Different modes have different service charge, cancellation fees, processing fee etc and choosing the right mode of transfer impacts on the total amount to be remitted.
• Timing your remittance is also important. You should always try and remit money on weekdays (Monday to Friday) as live exchange rates are open so you get plenty of options. Moreover, the international markets are closed on weekends.
• The international money market is ever fluctuating and it is hard to keep a tab on that. So it’s better if you set online alerts for an increase or decrease in exchange rates to give you the best possible outcome.
• Shopping is always a good idea in financial market. Money transfer agencies always come up with something lucrative to attract new customers and shopping gives you a clearer picture of the best rates and deals available.
The regulatory body for remittance in India, FEMA (foreign exchange management Act) of 1999 allows a NRI (non-resident Indian) and PRI (persons of Indian origin) to open and maintain any of the following account:
• Non-resident ordinary rupee account (NRO)
• non-resident external rupee account (NRE)
• foreign currency non-resident bank account (FCNR)
There are a number of ways by which people remit to India. The most commonly used method is the wire transfer offered by almost every bank and some private money transfer agencies. Other ways of remitting money to India are through bank drafts, money orders, ACH transfer, personal cheques and online transfer. No matter which mode you choose to remit to India, listed below are some of the points that you should consider before sending money:
• Never forget to check and compare the exchange rates before sending money. Since the currency value differs, a minor difference in exchange rates can be huge in rupees. So you compare with all the agencies before remitting so that you get the best value for your money and the recipients receive the maximum of what you remit to India.
• You should keep a check on the news and international market trends. If something major is predicted to happen in near future such as demonetization in India or brexit in Uk, it is better to avoid those period and let the dust settle down before you remit to India.
• Selecting the right mode of transfer plays a key role. Different modes have different service charge, cancellation fees, processing fee etc and choosing the right mode of transfer impacts on the total amount to be remitted.
• Timing your remittance is also important. You should always try and remit money on weekdays (Monday to Friday) as live exchange rates are open so you get plenty of options. Moreover, the international markets are closed on weekends.
• The international money market is ever fluctuating and it is hard to keep a tab on that. So it’s better if you set online alerts for an increase or decrease in exchange rates to give you the best possible outcome.
• Shopping is always a good idea in financial market. Money transfer agencies always come up with something lucrative to attract new customers and shopping gives you a clearer picture of the best rates and deals available.
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