5 points to remember before transferring money to India

Posted by gauri mishra on April 25th, 2019

There are countless ways to send across cash from one country to the other. This has increased the demand for money transfer agents and operators who conduct this process. There are several reasons why non-resident Indians (NRIs) or others may have to send money to India such as marriage, real estate investment, child’s education, and so on. However, there are a few points that you must remember to avoid costly errors. You could send the money to a wrong account and have a tough time to get it back.

Before doing the money transfer to India, make sure to keep in mind the following points:

1)      Account details: If you decide to send the money through your bank account, you must be aware that it requires both the sender and recipient’s account details and routing numbers. It does sound simple, but it is not. The account number format and the routing numbers differ from country to country. These numbers are crucial to finding the right bank account. If you write incorrect account or routing numbers, you may commit an error that would get difficult to fix.

2)      Currency conversion: You have to be a pro in math before you send money to India. So, if you are sending money in dollars, do not forget to convert them in rupees. If you forget to convert at your end, the bank tends to convert it at a higher exchange rate or may even reject the transfer. That is not all. You may also get charged for the transaction. Ensure to convert the money to avoid delays in delivery or for sending lesser cash than required. Ideally, look for the best transfer rate to India before moving the funds.  

3)      Fees: Money transfer to India involves two significant charges – one for sending money and the other is the actual amount you end up paying after converting dollar to currency. The latter depends on the foreign exchange rate between the two currencies, which is generally different for different vendors. Service providers usually mark up the exchange rate to earn a decent profit on your transaction.

4)      Comparisons: You may have to do money transfer now and then. You can save a lot by comparing different vendors and the charges they offer. Banks, online vendors, and money exchange operators differ when it comes to their services and costs. Some comparison and analysis ensure you transfer your money safely and is cost-effective.

5)      Delivery time: Sending money to India is a tedious task as it comes down to the vendor you choose and the payment mode you opt for. Debit card payments are faster but towards the expensive side. Bank-to-bank transfers take longer time but are reasonably priced. Banks have fewer delivery options in comparison to non-bank operators owing to their relatively small network.

When you decide to send money to India, it all comes down to the vendor, the exchange rates on that day, and mode of transfer.

Author bio:

Gauri Mishra is a currency expert with 5-plus experience as foreign exchange trader. In this article, she has listed tips that you must know before money transfer to India