Indians are setting up roots in different parts of the world as new global opportunities emerge. Simultaneously, students, professionals, and travelers from all over the world are pursuing opportunities in India. Growing global commerce and individual mobility make it necessary for easy finance to be available at all times.
Indian tourists, students, and professionals living in other countries often require money to be sent from India for financial support. Indian investors and importers also need to send money abroad to buy goods, stock, or property. At the same time, foreign national residents pursuing professional ventures or careers in India need efficient ways to send money back to their home countries.
This is why international money transfer from India has grown as an important financial service. In this piece, we will help you understand all you need to know about international money transfers from India.
What Is International Money Transfer?
International money transfer from India is also known as ‘outward remittance’ and is the process of sending money from India to another country. This process is regulated by the Reserve Bank of India (RBI) and directed by foreign regulations of the countries to which the money can be remitted.
Both individual Indian citizens and registered companies can avail the international money transfer facility. Any Indian citizen or entity can remit up to $250,000 in a given financial year, as per the RBI guidelines. The purpose of remittance can be business visits, tourism, donations, personal gifts, purchase of property, payment to vendors, education, employment support, medical care, etc.
The documents required to complete an outward remittance from an authorized platform can vary as per the service provider’s requirements. But they typically include a copy of your PAN card, proof of funds, Form A2, and supporting invoice or receipt against which money is being transferred.
How Does It Work?
Now, there are different ways in which international money transfers from India can be done. These are:
- Through a banking institution: Most recognized banks offer the facility of bank drafts or cashier’s cheques for remittance. You can purchase a draft or cashier’s cheque from your bank by paying the required amount with the transfer fees. The draft or cheque is issued in the currency of the recipient country and can be safely used for remittance.
- Through wire transfer: While bank drafts and cheques are safe and economical, they are also the slowest method for remittance. That is why wire transfer emerged as an efficient alternative. There are intermediary banks and financial service providers who offer wire transfer services. You can go to a physical branch of such a service provider or visit their website to complete an international money transfer from India to any country where the service is available.
- Through online money transfer: This is by far the fastest way to send money abroad, albeit not as economical as wire transfer can be. All you need is the bank and account details of the recipient, and you can remit money from India using a mediator platform. This method can attract heavy taxation rates and exchange rates, thus better suited for smaller transactions.
Factors To Consider While Choosing A Service Provider
Even though there are several options and service providers available in the market for international money transfers from India, you must always choose a service provider by assessing the following factors:
- Countries Covered: Most providers cover 100s of countries for international money transfer, but before setting up an account with them, check their covered countries list to make sure that the country that you want to send money to is among them.
- Speed of Transfer: International money transfers can take anywhere between 24 and 72 hours. Opt for a service provider whose service is faster yet high quality.
- Transaction Safety: Make sure that the service provider is licensed and authorized for outward remittance and has definite measures in place for safer digital transactions.
- Exchange Rates Offered: Opt for a service provider who offers a currency exchange rate compared to the market so that your cost of remittance is not very high.
- Overhead and hidden charges: Also, look for overhead charges or fees levied by the service provider for international money transfers. These could be flat fees or a percentage of transactions and may cost you a lot.
In conclusion, international money transfer from India is quickly becoming a high-demand service as global commerce is strengthening. Both Indian citizens, companies, and foreign nationals settled in India need efficient methods to send money abroad. One such fast and economical method for international money transfer from India is Kuvera.
Kuvera is a SEBI registered financial service platform that is partnered with Wise to offer outward remittance services in over 100+ countries. Its unique money transfer service is eight times cheaper and much faster than banks. With over seven million customers served, Kuvera offers international money transfer services from India at mid-market exchange rates and with no hidden fees.
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