Previously there was only limited options for transferring money to India.But nowadays there are many ways to transfer money to India and we are seeing new companies and advertisements for money transfer regularly. You should not chose a money transfer option because it was advertised by a popular celebrity. You should understand completely all the bottlenecks in the process before deciding the option because the money may be lost in between if you chose a wrong option.
Many of the Indian banks like ICICI,State Bank of India,Citibank etc have branches all over the world.If you have an account with any of these banks in India, you can open a local account in the country where you live so that you can easily transfer money to your account.Otherwise you can transfer money through private services like
Western Union,Xoom,remit2India etc which offers these facilities.
1. Disbursement speed
Find out how long it will take for the money to reach the desired account after you initiate the transfer.Usually it may take from 1 to 7 days depending on the country where you live. If is more than a week, then it is not a good option. Choose the option which will complete the transfer in 1 to 3 days.
2. Tracking facility
If you do a purchase online, you will get a tracking number and from that you will know where your shipment is. Similarly for money transfer also, the tracking facility is available and we can check the status of the transaction. Choose the service which provides the online tracking facility so that the money is not lost in between. If it does not provide tracking, then contact the customer support and ask what will happen if the money is not received with in the prescribed time. If the answer satisfies you, then go for the option. Otherwise don’t go for the one which does not have tracking.
3. Service charges or Transaction fee
Find out the service charges or transaction fee in both the ends of the transaction. Some banks or services put fee on both the sending and receiving end. Find out if there are any other charges like service tax.Choose the bank or service which has the lowest transaction fee. The transaction fee is either a flat rate or a percentage of the transfer amount and varies with the service you chose and the amount transferred. For eg. In Xoom if your transfer below $1000 through a bank account, the transfer fee is $2.99 whereas there is no transfer fee if the amount is greater than or equal to $1000.
4. Find the transfer Limits
Most banks or services will have a minimum limit per transaction and maximum limit per month or year. Choose the bank or service which has the maximum limit per month or year. If you transfer below the minimum transaction limit, they may put transfer fee.
5. Better exchange rates
Find out the rupee conversion rate by comparing 3 or 4 services and choose the service or bank that offers the best exchange rate. Also make the transfer when the rupee value is high and you can find out the approximate predictions of the rupee value for the next 3 to 6 from websites like Moneycontrol,Forecast etc.
6. Coverage and convenience
Find out whether the service or bank you choose accepts the currency in your country and whether the service or bank is available in the location where you want to transfer the money as most of the online services are available only in cities and urban areas.
7. Make a test transfer
If you are planning to send a good amount of money for the first time,then make a test transfer for the smallest and acceptable account and ensure that the full amount is received by the recipient within the stipulated time without any hidden charges or other issues.
8. Keep proof of the transaction
Whenever you do a transaction through a bank or other service, keep the proof of the transaction with you till the recipient receives the money even if you know that the bank or service is 100% reliable.
9. Avoid last minute transfer
Transfer the money well in advance so that the recipient has enough time to receive the money. If you do it in the last minute, any delay in the transfer will lead to critical situation for the recipient.
10. Safety tips while transferring money
- Don’t make the transaction in any public or a shared computer as there is a chance of misuse.
- While transferring through online banking, make sure that it is the correct website of the banking by verifying its security certificate. You might have heard about the fake website of the ICICI bank.
- Don’t write the passwords in a paper and keep it you.
- Choose a unique password for each service or bank in such a way it is completely different and not related to one another.