How to send money to India: What are the options you can consider?

There was a time when people would post money to each other within the country. Now times have changed. People not only travel outside their village and towns to different cities but also cross borders and fly to distant countries. Those who work abroad should not worry about how to send money to India from across the seas, across the borders.

One can easily choose to transfer money via online or offline methods, and rest assured that the money will be received by their family living in India-

When considering how to send money to India some online options are:

• E-transfer– This form of disbursement is extremely convenient. In case of E-transfer money is directly sent and received from one bank account to another.
• Power transfers- It is a web-based wire transfer of money. It gets rid of all the errors that is associated with the normal wire transfer.
• Online foreign exchange service- This allows an individual to be able to remit money in different currencies.
• Paypal- Is a more recent transfer option that has come up. Paypal is another great and viable option which is extremely user friendly. Through Paypal, an individual can transfer money easily and quickly via his mobile.

Online wire options are better if an individual is in a hurry to remit money. One can also opt for National Electronic Funds Transfer (NEFT) system or EFT system and money can be received in India by a week. Although it takes more time, it comes at a lower cost.

When considering how to send money to India some offline options are:

• Cheques- Through this method of transfer, an individual will have to first order a foreign currency draft via which funds can be transferred to India.
• Bank drafts- Using this option is also very pragmatic as remote employees who work from India, can quickly cash the cheques.
• Hubstaff- It is another service that allows payment to outsourced employees in India.
• Wire transfer- This form of transfer is the oldest traditional method of money transfer, where one has to go to the bank or an agency in order to send money.
• Money orders- When it comes to transferring a small amount of money, a money order is the most feasible choice. Moreover money orders are less expensive compared to bank drafts.

While money transfer to India was difficult in the olden day, today it is as easy as making and online purchase. A number of different reliable and fast transfer modes have been developed for the convenience of Indians living over-seas.

How to track Forex exchange rate?

Foreign exchange rate is also known as Forex exchange rate. When the currency exchange rate is floating in nature, in that case it may be pegged with another currency, usually to the U.S dollar or to the currency of gold. The exchange rate is usually determined by the relative demand and supply of money in between two countries.

The exchange rate of a country generally signifies how economically well it is doing. The richer the country the higher is its exchange rate. This is primarily why more developed countries like America, Australia and Britain have a higher exchange rate as compared to developing countries like Africa or India.

It is important to be able to track the changing exchange rates with time and remain up to date with the prevalent Global exchange rates.

But how can one keep a track of the different forex exchange rates?

• One could do so by downloading the Global Exchange rate apps from the App Store or the Play Store or Google Play, where live exchange rates can be received along with the provision of an all-in-one currency converter. These apps also help to transfer money as well as track all transfers on the go.

• There are also service finance apps such as Yahoo! finance and free stock charts.com that offer notification of live market rates of currency pairs. One can just download such an app for more information on Forex exchange rate. These apps are extremely helpful to those who want to keep themselves updated about the global exchange rates.

• News channels as well as new apps also provides a lot of information regarding the world of Business and Finance. Daily discussions on the changing exchange rate in the Global market are held by news channels, offering a market analysis of every country’s economic status.

• There are plenty of websites on the net and one could surf these sites and web pages to get information on different exchange rates all over the world.

• While surfing the net, there are several web pages that provide information on Currency Tools, Foreign Exchange Charges Calculator or Forex Exchange Rate Convertors and Currency Converters and Calculators. These tools help to calculate and convert currency as per the exchange rate of the country one is visiting.

Staying up-to-date with the forex exchange rate helps people to trade at a more profitable rate.
Knowledge about the forex exchange rate is not just helpful for those involved in trade, business and finance but also those who wish to travel and see the world.

Do you know the features of the NRE accounts that you can use to your advantage?

NRE stands for non-resident external account. This account is a savings or a current account used by Indians who are staying abroad, allowing an efficient conversion as well as transfer of Indian and foreign currency, both in and out of India.

NRI’s may transfer money to their family living in India, through their NRE account. The income that is generated in the country as rent, dividend or pension is also deposited in their NRE account for later use.

Some of the features of the NRE account which you can use to your advantage are given below:

• The most attractive feature of the NRE account is the fact that it is free from wealth tax.
• Not only is the tax exempted but one can also earn interest.
• The minimum balance that has to be maintained in the account is comparatively low as low that is 10,000 rupees only.
• When it comes to NRE accounts, the account holder can nominate an Indian resident to be responsible for the savings in the account in case of death of the account holder.
• One can conveniently access money using an ATM cum debit card, anytime and anywhere. There are numerous ATM branches throughout the country.
• Simple and easy money transfers can be made at a very low cost both online as well as offline. The exchange rates generally vary and one can compare and select what suits them the best. Many banks also provide a very simple and safe process of money transfer from abroad to India.
• Banks also provide the facility and the option of auto renewal of deposits.
• A person can also open a joint account with another NRI.
• NRI accounts also allow easy transfer of funds from out of India into the coutnry.
• Another advantage of having an NRI account is that it comes with a variety of added benefits which caters to an individual’s needs in India as well as in foreign lands.
• If an individual earns rent or revenue etc. from Immovable property abroad, that amount can be deposited into the RFC account once the individual returns to India.
• The banks also offer several other facilities like International Credit/Debit cards, On-line / Internet banking etc. making the process of depositing and withdrawing money less tedious for customers.

All the above mention features are extremely pragmatic and beneficial for the bank customer and also the depositor's near and dear ones residing in India. Therefore, it is practical and wise to opt for an NRE account for safe and easy money transfers and deposits.

Why the NRI account is a must for those settled abroad?

Those Indians who reside outside India, or those who are of Indian origin but are not residing in India, are referred to as NRIs or Non-Resident Indians. Although they live abroad, it is a must for them to have an NRI account. They can open an account under any RBI authorized financial institution or bank which provides a number of services and benefits.

Some of the reasons why Non-Indian residents should have an NRI account have been listed below:

• One of the most important reasons why an NRI must have an NRI account is that it is ILLEGAL to have a residents saving account when someone becomes an NRI. It is against the law according to FEMA regulation. Thus, the person must find a new account to invest his funds in. This is why an NRI account plays a valuable role.
• Besides the viability of the account, an NRI has to manage money- the transfer of money, its conversion, its repatriation etc. All of this can be handled and managed by an NRI account.
• There are basically two types of NRI accounts:
1. NRE account- This is a non-resident external account, where the NRI can save all his earnings in foreign currency.  It gets automatically converted into INR, when deposited in the account.
2. NRO account- This is a non-residence account, in which both Indian as well as foreign currency can be deposited.
• Another interesting fact is that the NRO account is tax free. But the NRE is liable to tax payment of GOI @ 30%.
• One major positive feature of having an NRO account is that it is fully repatriable, while an NRE account can be repatriated up to 1 million.
• With the advancement in technology, those working overseas need not worry about sending money to their loved ones back in India. They can do so on the go, online, through their cells from anywhere and at any time.
• The family members back at home can withdraw this money sent to them easily.
• Not only can an NRI save and deposit money into their NRI account, but even friends or family can deposit money into that account which can be transferred by the NRI whilst staying in a different part of the world without the hassle of paying extra fees or providing legal documents.

All these above mentioned points provide enough reason for an NRI to open an NRI account. It will definitely make their and their family’s life much easier and simpler. The account helps maintain and support long distance relationships and bonds.

NRI banking facts that you need to know before settling abroad

In the course of the years there are a number of Indians who have settled overseas. They have either established their own businesses or built a successful career for them there and are sending money to their near and dear one in India.

With more and more transfer of money from abroad to India and vice versa, the NRI banking rules and regulations have evolved continuously. Today, there are a number of banks as well as non-financial institutions that have been authorized by the Reserve Bank of India (RBI) to deal in NRI banking. This means the maintenance of NRI bank accounts, aiding in money transfer, insurance as well as loans.

When it comes to NRI banking, Indian living abroad can opt to open the following type of accounts-

• Foreign Currency Non-Resident Account (FCNR) - Such accounts are meant for term deposits, with a time duration that can either be up to one year or even 3 years.
• Non-Resident External Account (NRE) - This account holds Indian rupees. Thus foreign money that is transferred to the account is converted to Indian money before it is deposited.
• Non-Resident Ordinary Account (NRO) – It is a normal savings bank account that is held by an NRI in the country.

Here are some facts that one should know about NRI banking in India-

1. An NRI bank account and all activity that is related to it can be handled by an individual who is living in the country, on the behalf of the account holder. The account holder only has to give this trusted person the power of attorney. But, the person who holds the power of attorney does have certain limitations. He cannot make gifts of the money that is there in the bank account and is also not allows to transfer money outside the country.

2. Another important fact that an NRI should know is that he can invest in shares as well as securities of companies and organizations that are Indian. In fact, an NRI can also invest in government securities. One can make such investments through their NRO/NRE account.

3. NRI’s should be aware that any interest that they earn on deposits made in their FCNR bank account is exempted from tax deduction under the Indian NRI banking tax law. Thus, they can make effective use of their FCNR bank account to build-up some savings.

4. NRI’s should be aware that any interest that they earn on deposits made in their NRO bank account is not exempted from tax deduction under the Indian NRI banking tax law.

NRI banking in India has a number of features that one should be aware of in order to take full advantage.

Why to create a FCNR account for your child when they move abroad

In the past years taking trips or settling down in foreign countries was a luxury that only the rich could afford, today a number of parents can think of sending their children to America, Britain or other countries to pursue higher studies or make a career for themselves. They generally take this life changing decision with the help of some savings or an education loan. Thus, the world today has literally become a global village, and many Indians do opt to pursue further education in other countries and settle down there for good. 

They do have parents or families back in India, which is why they continue to remain in touch with their traditional roots. Moreover, India has great investment options, including attractive property as well as stock prices. Thus, NRI’s find it financially beneficial to invest in property in the country, and play the field in the Indian stock market. Moreover, they also benefit from the attractive interest rates they can take advantage of by investing in fixed deposits.

In order to make good investments in the country or even when it comes to sending money to one’s parents or family, it is best for an NRI to hold and account in the country. It may be an NRE, NRO or FCNR account. One can also open all three accounts as each has a different purpose.

A parent opening any type of account for their child abroad, be it an NRE or an FCNR account, should first ensure that they are aware of all the rules and regulations that are set up for NRI banking by the reserve Bank of India (RBI). The RBI keeps making alterations and amendments to the laws, which is why one should keep themselves up-to-date in order to make the most of them.

What is an FCNR account?

An FCNR account is basically a term deposit, which means that it is a type of fixed deposit account which earns interest on savings.

Parents with children abroad, can open FCNR account for their offspring, so that their kids can start saving in foreign currency. It is highly likely that kids studying abroad take up side jobs and internships where then get paid. They can save this money in a term deposit and also earn interest on it.

Moreover, the Indian government allows deposit in the FCNR account in 6 different currencies, namely, the US dollar, Australian dollar, Euro, Japanese Yen, Pound Sterling and Canadian dollar.

One can definitely make the most out of an FCNR account with attractive interest rates.

Did you know the online money transfer is the quickest way to send money?

In the past years, transferring money from one bank account to another meant that one had to pay a visit to the bank, stand in a long queue and submit a cheque. In case of any mistakes on the cheque the money would fail to transfer and one would have to pay another visit to their bank office. The fact that it is time consuming is a drawback. But with the advent of computer technology, banks have upgraded and making transactions have now become faster and simpler.

With the introduction of computers and the internet, banks came up with a new way of making transfers and money transactions- Internet banking.

Internet banking involved online money transfer, which made banking extremely easy for those who had laptops and computer systems at their office and homes. But individuals who did not have access to computer systems had to still transfer money the traditional way.

Today, technology has become more advanced and internet banking cannot only be done through computer systems and laptops, but also through smart phones/tabs etc. As a result online money transfer and other online facilities have become the smart way of banking.

In fact, online money transfer is not only hassle free but also one of the quickest ways to send money to another person’s bank account. While, the traditional method of money transfer is a very slow process, online money transfer can be done in a matter of a few minutes, and the money is transacted into the recipient’s account in an extremely short period of time, generally within 24 hours or even lesser.
  
With online money transfer one can not only send money to recipients within the country, but can also transfer money to their family and friends living in other countries. While one does have to incur a small transfer fee, online money transfer proves to be much faster and efficient as compared to wire transfer.

In fact, a number of different online money transfer and payment services have come up in the past few years. These services are generally available in mobile apps, which one can register and use. Some these online money transfer services include PayPal, Paytm, Google wallet etc.

Therefore, in this time and day one should learn how to work with internet banking and various other phone apps that allow one to make transactions online. The world has become more and more competitive and everyone is living a fast paced life. Online money transfer makes life simpler and hassle free, especially when it comes to banking.