Factors to consider when sending money to India from the USA

Plenty of Indians have settled in the USA for better career options as well as a better lifestyle. At the same time, these individuals send funds back home, for various reasons ranging from families to repaying a property purchase back home.

However, with so many options available in the market, how can an individual choose one that will suit his needs? Given below are a few features you can consider when opting for an option to send money to India from the USA.

Exchange rates:
This is one of the most important and first feature you will need to consider when comparing options to send money back home. While this exchange rate will not be fixed on a daily basis, the variations offered between the rates is often similar. However, you must keep in mind, while the exchange rates may be beneficial, you may need to pay higher transfer fees.

Transfer fee:

Each transfer company will offer their transfer fees. Therefore, it is crucial that you review the fees before you apply for the transfer or even proceed with the transaction. Look for companies that offer you transfer fees that match your requirements. At times, some companies also waive the fees if you transfer more than the minimum amount.

Transfer method:

There are plenty of companies that offer traditional means of transfer, such as a demand draft, wire transfer or even through cheques. Alternatively, some companies also offer digital transfers through emails. Some companies also allow you to make the transfer through the means of a single phone call or a message. You will also need to compare payment options available, such as bank deposit, debit or credit card.

Transfer time:

Each company will offer you different time durations when making a transfer. This is a crucial factor to consider, especially when you want to send an emergency fund to your destination company. Additionally, to reduce the duration of the time taken for the transfer, you may need to pay a premium. Alternatively, some companies only specialize in quick services.

Pick up methods:
As a sender, you will need to consider options that will provide you the means to send money to India. However, at the same time, you will need to consider how the receiver will have access to the funds. Will the funds be transferred directly to the recipient’s account or can does the receiver need to pick up the funds from a fixed location?

Transfer options:

At the time, you will want to make a flexible transfer. This includes the ability to lodge contracts forward, place orders in the financial market or even schedule payments in advance. You can look for options that offer you this flexibility.

What are the best investment options available for NRI’s today?

Plenty of individuals have traveled abroad for various purposes such as earning in a foreign currency, change in job location or even migration purposes. Some individuals also travel abroad to study and end up applying for a job with the same country.

No matter the reason, plenty of these individuals still wish to invest in opportunities, back in their home country of India. Supporting this decision is the government regulations that provide the legal framework along with the value of the falling rupee. Along with this, there are plenty of options to consider when it comes to investing. Here are a few options for NRI investment in India you can consider:

Bank Fixed Deposit:This is one of the most popular choices amongst NRI who wish to invest. Not only does plenty of banks offer this opportunity to NRI’s, but you will also have the option to invest in the local currency or the foreign currency. Normally, banks provide attractively, and high rates on NRI fixed deposits, making in the best option for high returns. With this option, you can opt for NRE deposit, NRO deposit or even the FCNR account.

Mutual funds: Mutual funds is another option that can be taken into consideration for anNRI investment in India. This is extremely beneficial to those who already hold any of the three NRI bank accounts, namely the NRE, NRO or FCNR account.  However, the investment in this option must be made in foreign currency. Additionally, the investment amount can be directly debited from the NRE or NRO account.

Direct Equity: Under the portfolio investment scheme of RBI, NRI’s can invest directly in the stock market. Under this regulation, the maximum investment that cannot go beyond 10% of the paid-up capital of the company. In this case, in addition to the NRI account, a demat account, and brokerage must also be opened. All transactions must be made through the stock broker only. Additionally, NRI’s do not have the permission to trade during the day or short sell within India.

Real estate sector: If NRI fixed deposits have been a popular option for NRI’s, the real estate sector has been a traditional option. Plenty of Indians may leave home and settle abroad, but a property back home will always consider as a prized possession. This NRI investment in India also has an added advantage, as property prices often appreciate, providing the ideal form of emotional security. All in all, the real estate sector is considered as one of the most lucrative investment options for NRI’s.

Apart from these options, there are plenty more to consider. However, you must first check the regulations and conditions of your resident country when it comes to investing these options in your home country.

What happens to the financial accounts of an NRI on return home?

Plenty of individuals travel and settle abroad while investing in financial assets in the home country. These financial assets can include property, selected equities and even hold an NRI bank account. Amongst the several options, the bank account has been the most favorable, due to its flexibility and convenience, amongst many other advantages.

However, an NRI can hold any of these NRI accounts, on the condition of their NRI status. In the event, the account holder returns home, the status and the functionality of the account will change. Here is how the NRI accounts are affected on return to India:

Change of NRI accounts status when returning to India: There are different types of NRI bank accounts available to an NRI. They include the NRO account, NRE account, and the FCNR account. Each of these accounts hasa different functionality, in addition to holding different forms of currency. They also have different restrictions and conditioning. When the account holder returns to India, the bank must be informed about the change in status, which in turn, will change each of the account’s functions and conditions. In the case of the NRO account, it will be converted back into the resident saving account. The NRE and FCNR account will get converted into the Resident Foreign Currency account.


Change of the NRI termed deposit when returning to India: On returning to the home country, the NRI’s termed deposits such as FCNR can be held until it matures. After maturity, the FCNR fixed deposit must be converted to the RFC account. However, the interest that is taxed on this account will depend on the status of the account holder, especially if he has stayed abroad for 9 years, in the previous 10 years, making him a resident, but not ordinarily resident status. If the account holder qualifies for this status, then the interest that is earned on the RFC account will be tax-free for the next 3 years.

Change of NRI bank accounts which holds foreign currency: NRI’s who hold foreign exchange on their return home, and wish to hold it without converting can opt for the Resident Foreign Currency account in India. Such an individual can open the account on condition that he or she must reside abroad for a continuous period of 1 year, before opening the RFC account. The RFC account can hold foreign currencies of the US dollar, Euro, Great Britain Pound and the Japanese Yen. This RFC account can be opened either in the form of savings account or a fixed deposit. The interest is taxed on this account unless the account holder qualifies for the RNOR status.

Debit Card: Be aware before you swipe your card here

Amongst all the different banking cards available, the debit card has always been a popular choice for many card holders. Not only can you use this card to make a transaction at the point of purchase, but you can also use it to withdraw funds from any ATM. Additionally, certain debit cards also allow you to collect reward points if you make purchases at certain outlets.

However, your card will be as useful to you, as it is safe. In other words, the funds within the account attached to your card will be safe, as long you are aware of the usage of the card. With plenty of fraudsters and scammers looking for an opportunity to make a quick buck, at the expense of others, debit cards have become a slow favorite for these individuals. Here are a few places you must be wary of before you swipe your debit card to avoid becoming the next unsuspecting victim for these individuals.

When making a purchase online

One of the popular usages of the debit card is online shopping. You only need to select the product, place it in the virtual shopping bag and enter your card details to make the purchase valid. However, if the payment gateway is not secure, the details of your card will be made public, allowing fraudsters to access it with ease. Additionally, if the purchased merchandise is not delivered or damaged in the process, you may not get your money back.

At the supermarket self – check out counter

Plenty of supermarkets are slowly becoming financial savvy while focusing on the overall productivity of the market service. The self-checkout counter is one such example, wherein, you only need to scan your products, and make the payment through the self-check banking card reader. However, when making a payment through these lanes, skimmers on the card reader slot collects information about the card being used and stores the data on an embedded chip. The data then can be used to access your account, or even change the details on it, thus restricting your use of the card.

When booking any advance travel

It is not uncommon for individuals to book an advance travel transport, just because they see a good deal. However, while you may think that you’re saving on this deal, in the long run, you may lose the funds on the payment, when the travel business can go bust, in an economic downturn. As debit cards do not offer the charge back features, you may end up losing your funds on this deal. To be on the safe side, use your debit card, only if you are confident of the travel company.

At a restaurant

Restaurants have a high turnover, especially if you are one of the regular individual's visit on a regular basis to your favorite joint. While on each visit you use your card, there is always a risk that a fraudster posing as an employee can access your card details, on any of your trips to the restaurant.

What are the popular NRI loans in India?

Plenty of individuals from India have settled abroad for various reasons ranging from settling abroad, better work environment or even for studying purposes. Although these individuals have settled abroad, they would still like to maintain some form of attachment or tie, back to their families or home countries. This may include investing in a property near the family home, renovating a property belonging to them, or even investing in a vehicle.

The financial market of India has recognized this need and requirements while focusing on means to tap the NRI market. Therefore, they have created liberal criteria to evaluate the request for the various loan categories that includes age, tenure, and income amongst many others. With the NRI loans, the minimum age of the applicant must be 21 years with the maximum at 60 years. In addition to this, the tenure of the loan is often less as compared to the local loans offered to Indian residents. Additionally, the annual income of the applicant must be over 40,000 USD. However, it can vary as per the policy of the individual’s bank.

Here are some of the popular NRI loans, and how you can benefit from it:

Home Loans

This is one of the most popular NRI loans. As in plenty of cases for most expatriates, most NRI’s would like to maintain some connection with their homeland. What better way to do so, than by investing in a property, in India? Plenty of banks and financial institutes have recognized this desire and have created a variety and diverse schemes, suited to the needs of NRI’s. Therefore, such a home loan makes sense for any NRI to utilize to their advantage.

Home improvement or renovation loan
At some point in life, every property will need to undergo renovation or repair work. For certain individuals, it can be an expensive affair, which can go well beyond their means or affordability. Additionally, opting for a local home renovation loan may not be sufficient, especially regarding repayment. In this case, any individual within the family who is working or settled abroad can opt for NRI loan specialized in home improvement or renovation. Before applying for this loan, however, the applicant must check the criteria for it, as it can differ from one institute to another.

Vehicle loans

In the case of vehicle loans for NRI, the criteria can differ from bank to financial institute. While some institutes will provide NRI loans to the NRI themselves, they may still request for a resident Indian to stand as a guarantor. Alternatively, some institute will allow NRI’s to become a guarantor while availing the loan under the name of an Indian resident. In this case, although the NRI’s status on the loan application is as a guarantor, the individual may be required to pay the EMIs.

Are you aware of these factors before opting for a money transfer service?

There are plenty of factors you will need to consider when it comes to making a money transfer. Some of the factors that are taken into consideration include the amount that needs to be transferred, the current conversion rate and the speed of transfer amongst many others. However, the one factor that needs to be taken into consideration before all others, is the money transfer service itself. Here are some of the factors you need to be aware of when it comes to selecting a money transfer service:

Exchange rate

Amongst all the money transfer services available, this is one of the most important factors to consider. The foreign market, in reality, is never still. Wild fluctuations in the exchange rates can occur within a short duration. To those who are making a transfer, it is imperative that the best exchange rate is selected in order to secure the best value. A favourable exchange rate, especially with a large sum of funds will save you a significant sum of funds.

Fees and charges
This is one of the imperative factors you will need to consider when it comes to the money transfer services.In addition, the exchange rate, additional fees, and charges are important when considering the overall cost factor of the money transfer. You will need to keep in mind the transfer charges and overseas bank receiving fees. While the value of these fees can differ within each institute, you will need to keep track of it, when making any urgent or non – urgent payments as they can impact the overall amount of the transfer.

Reputation of transfer provider
Several money transfer services have become a popular option for traditional banking services when it comes to making any overseas payments. Before making any currency transactions, it is paramount to ensure that the transfer money institute you are opting for, is authorized by the appropriate regulatory body to carry out the money transfer. These authorized institutes usually afford a higher protection, as they have to safeguard their client’s funds from other funds. The best way to check the reputation of a money transfer provider is by checking the balance sheet and the trading history of the company’s reliability.

Check for online services
Plenty of financial institutes offer the physical means to transfer funds from one location to another. That means you will need to approach the physical institute to make any transfer. However, most companies are now switching to online platforms, making these money transfer services viable and feasible for all individuals. You will only need to create an online account in order to make this transfer possible. Advantages of this online account includes, tracking of payment history and storage or subsequent transfers.

Remit to India: How to lessen your financial burden with these tips

Plenty of individuals who have settled or stayed abroad need to remit to India now and then. However, with plenty of options available in the market and each possessing different nuances, how do you choose the option that will suit you the best? Here are some tips that can help assist you:

Look for options that help share fixed fees during remittance

When you remit to India, certain banks or financial institutes offer you the option to choose who pays for the fixed fee cost of the remittance. In this case, either the sender or the receiver can pay for the cost, or share it. With each transfer of funds you make, different fees or costings will be involved. Depending on who’s opting to pay, the sender or the receiver will be responsible for their bank and the intermediate bank’s fees, in addition to the transfer amount and exchange rate.

Get the best rates between Mondays to Fridays

While the financial market may be unpredictable, certain trends can be easily perceived. For example, you will get the best of live exchange rates, if you opt to remit to India, between Monday and Friday. During this time, the international markets are open. On the weekends and public holidays, international markets are less functional, if not closed. At this time, the exchange rates that are quoted are either not live or a close estimate. Thus, there is a high chance that the remittance will be higher than usual.

Opt for the same bank or financial institute that has a branch abroad

When transferring funds from any bank around the world to India, three banks will be involved, namely, your bank, the intermediate bank and the receiver’s bank. Depending on your requirements and the requirements of the receiver, your remittance will become faster, easier and cheaper, if you transfer funds internationally and locally, within the same bank or financial institute. In this way, you also remove the necessity of an intermediate bank and the fees involved. 

Transfer on Mondays or Tuesdays for a quick turnaround time
Plenty of international countries have different conditioning when it comes to remitting to any other destination, such as India. For example, UAE banks are closed on Fridays, whereas most other banks are closed on Saturday’s and Sunday’s. Keeping these conditions in mind, it is best to transfer funds on a Monday or Tuesday from your bank or financial account.  As the funds will reach within the week itself, any issue or problem can be clarified within that week itself.

Best time to transfer funds is before 10 am

During the week, most of the international currencies transfer have a cut of time between 10 am and 12 pm GST. In this case, a two-hour margin is advised for transfer processing. This is to certify that there is no missing information required or inconsistencies to be fixed before the transfer takes place. Therefore, if you make your remittance before this time, there is a better chance that it will be processed on the same day.