Sending money internationally can be very expensive, especially if you are unaware of the hidden fees. Money transfer firms and banks make money by charging you not only a transfer charge but also a hidden markup on the exchange rate.
All Resident Individuals have access to the Liberalised Economic Scheme, which allows them to freely remit up to USD 125000 every financial year for any authorized current or capital account transaction, or a combination of both. The frequency or number of times money can be transmitted abroad from India is unrestricted, and the total limit is set at $1,25,000.
Online Money Transfer Using Internet Banking
Online money transfer is one of the most convenient ways to send money internationally. The vast majority of Indians use this way to send money worldwide. The method only requires the destination account details, the receiving bank's code, account holder information, and so on. Keep in mind, however, that because this process excludes intermediator banks, you may be subjected to hefty taxes and exchange rates.
Wire Transfer Using Money Transfer Agency
This is the most recent way of money transfer to appear in the industry, and it offers reduced costs and levy charges for conducting an international money transfer from India. You can make a wire transfer through a variety of financial institutions, such as banks or approved money exchanges.
The wire transfer facility collects information about the recipient and the recipient's bank or other facility where the money must be delivered from the sender. The sender institution initiates the wire transfer and sends the message to the receiving institution after obtaining the information from the sender. This procedure takes a few days to complete.
Bank Drafts, Cheque or Visting Bank branch
Bank Drafts and Cheques are accessible at most of the bank locations throughout the country. You can buy bank drafts and cashier's cheques in the currency of the recipient. They are a cost-effective way to send money overseas, but they take longer to reach the destination. The draft and cheques are traceable in the event that they do not arrive at their intended destination, and they provide complete peace of mind when sending money overseas from India.
Make sure to double-check specifics like the recipient's account number and other information, regardless of the option you choose. Remember to evaluate costs and currency rates, as well as the time it will take to complete the transfer, especially if the receiver is on a tight schedule. Always preserve a record of the transaction in case you need to follow up on it later, and be wary of scams and frauds. When it comes to dealing with your money, only use tried-and-trusted systems.
Things to check when sending money abroad
While comparing rates from various banks, one should also compare rates from websites that offer online remittances for both private and capital account transfers through a network of banks with whom they are affiliated.
Rates might change at any time, so keep an eye on them. The forex market never sleeps, and the exchange rates are constantly shifting. Keep an eye on the rates and lock them in when they're at their lowest so you don't have to remit when they're at their highest.
People frequently send money at the last minute, and their final choices may not be the greatest. If possible, organize ahead of time for remittances. Look for the best exchange rates that are available.