Summary: As international money transfers become more common for education, family support, or investments, finding efficient and cost-effective methods to send money abroad is essential. Learn more to explore the best options available for your needs.
According to the latest RBI data, outward remittances from India under the Liberalised Remittance Scheme (LRS) hit a new high of $31.73 billion in FY24, reflecting the growing need for efficient and cost-effective ways to transfer money internationally. Whether you’re transferring your university fees, sending financial support to family members, or paying for investment overseas, understanding the best way to remit funds abroad is crucial.
Understanding Outward Remittance and Its Regulations
Before diving into the different ways of transferring money, it’s essential to understand the regulations governing outward remittances from India. The Foreign Exchange Management Act (FEMA) allows an Indian citizen to transfer up to 250,000 USD in a financial year. This substantial limit enables Indians to explore various opportunities abroad, from work to education and investments.
However, sending money internationally involves currency conversion, and banks typically profit from the exchange rate difference. Therefore, choosing the right method to transfer money, considering factors like exchange rates, transfer fees, and time required for the remittance, is vital.
Different Ways to Send Money from India to Abroad
1. Use an Online Money Transfer Service:
The emergence of online money transfer services has revolutionized the way people send money overseas. Platforms like BookMyForex offer online booking options and doorstep KYC service, allowing users to remit funds from the comfort of their homes.
1. You can transfer money online by simply uploading essential documents and submitting details such as the recipient’s account details, SWIFT code, etc.
2. Online platforms often offer up to 2% better rates compared to traditional banks along with zero to minimal transfer fees, helping you save up to 5% on your transfers.
3. Online transfers are completed within 12-48 hours, regardless of the destination. You can also track your remittance order online using a smartphone or laptop.
2.Issue a Currency Demand Draft:
A currency demand draft (DD) is another payment instrument used for remitting money overseas. It is issued in the currency of the foreign country where you intend to send the money. Banks charge a fee for issuing a DD. As per RBI guidelines, demand drafts are valid for a period of three months from the date of issuance.
1. DDs are considered a safe mode of transfer, but a major disadvantage of DDs is the time and effort involved in obtaining them.
2. Additionally, they may take longer to reach the recipient, making them less suitable for urgent transfers.
3. Obtain an International Money Order
International money orders have been around long before the advent of electronic transfers. Traditionally used by people with limited technological access, money orders do not rely on digital means.
1. Money orders are issued by banks or postal services and are converted into the recipient’s local currency. Once the recipient receives the money order, it can be encashed at cooperating banks and post offices.
2. Despite their long history, international money orders are now considered outdated and are not widely used for international remittance. It’s crucial to confirm whether the money order will be accepted in the destination country before opting for this method.
4. Opt for the Wire Transfer Facility via Banks
Wire transfers are gaining popularity among people who need to send money overseas quickly and efficiently. This method involves transferring funds electronically from an Indian bank account to a foreign account, facilitated by the SWIFT network, a secure messaging protocol used worldwide.
1. One of the major disadvantages of using banks for wire transfers is the high fees involved. Banks often charge hefty fees for overseas transfers and may impose hidden charges or additional fees.
2. Banks typically offer less competitive exchange rates compared to online money transfer services. The difference in exchange rates can result in a substantial loss, especially when transferring large sums of money.
3. Banks may not always provide a clear breakdown of fees, exchange rates, and timelines, leading to confusion and potential dissatisfaction with the service.
Best Way to Send Money Overseas: Why Online Platforms Like BookMyForex Are the Top Choice
When it comes to sending money abroad, online platforms like BookMyForex offer the best combination of competitive exchange rates, zero fees, fast transfer speeds, and unparalleled convenience. With a user-friendly interface, transparent pricing, and special tie-ups with reputed banks, BookMyForex makes international money transfers secure and worry-free.
Below is a table showing why BookMyForex has an edge over banks and other money transfer service providers:
| Features | BookMyForex | Other Providers |
|---|---|---|
| Exchange Rates | Live and Transparent Rates | Up to 2.5% Markup Over Base Rates |
| Transfer Fees & Charges | Service Charges: Zero Bank Charges: Zero | Approx: Service Charges: INR 250-500, Bank Charges: INR 1500-2000 |
| Transfer Speed | 12- 48 Business Hours | Up to 24-72 Business Hours |
| Hassle-Free Booking Option | Online Booking Option, Doorstep KYC Service | Some Providers May Not Offer Online Booking Option |
| Customer Service Support | Both On-Call and Online Customer Support Available | Lack of Dedicated Staff to Assist Customers |
| Transparency and Trustworthiness | Provides Real-Time Exchange Rates, Rates Get Updated Every 3 Seconds | Provides “Fixed Exchange Rates of the Day” to Counter Rate Fluctuations |
| Rate Lock Feature | Book Now & Pay Later Option Available, Lock-in Desired Rates for up to 3 Days | Book Now & Pay Later Option Not Available |
Key Takeaway:
With the variety of methods available, it’s crucial to choose an option that offers the best combination of cost, speed, and convenience. Traditional methods like wire transfers via banks often come with higher fees and less favorable exchange rates, making them less ideal for those looking to maximize their money’s value. On the other hand, online platforms such as BookMyForex offer a modern solution that caters to the needs of today’s users.
By providing competitive exchange rates, lower fees, fast transfer times, and a seamless online experience, BookMyForex stands out as the best way to send money from India to abroad. Whether you’re sending money for education expenses, family support, or investment purposes, choosing BookMyForex means you can rest easy knowing your money is in good hands.
