Last Updated: 8th Dec’21
With so many fund transfer methods within easy reach, remitting money overseas has become much easier for Indian citizens. From investing huge sums overseas to sending financial assistance to family members, outward remittance services are availed for swaths of purposes in today’s age. In fact, outward remittances carried out by Indian Residents soared to $18.75 billion in 2020.
Sending money internationally involves currency conversion, and banks profit from the differentials in the exchange rate. According to the Foreign Exchange Management Act (FEMA), an Indian citizen can transfer up to 250,000 USD (₹1.85 crore) in a given financial year. What’s noteworthy is that outward remittances have risen to a great extent mainly due to Indians exploring work and educational opportunities overseas.
For choosing the money transfer mode that suits your needs, you must consider parameters like exchange rates, time required for completion of remittance etc. If saving money is an indispensable priority, you should inquire about all the charges associated with the transfer service in advance to avoid last-minute complexities. Depending on the mode of remittance, you will have to provide essential documents like PAN card, Form A2 etc.
Most efficient and fastest ways of sending money from India to foreign destinations.
1. Use an online money transfer service
There is no doubt that the emergence of money transfer service providers like Bookmyforex.com has made outward remittance easier than ever. People who lack time and want quick completion of transfer orders rely on online service providers for the best results. The nicest thing about illustrious online transfer services is that they offer a 100% paperless and web-based process.
This means that you can remit funds from the comfort of your couch just by uploading a few essential documents and ID proofs to get your order confirmed. Online transfer processes require information like your account details, recipient account details and SWIFT code. So, you get the most competitive exchange rates in comparison to all the aforementioned mediums of fund transfer.
No matter which part of the world you are transferring funds, the online process will not take more than 24 hours to finish. You can even track your remittance order online with a good internet connection and smartphone/laptop at your disposal. Now that a plethora of money transfer service providers are operating online, choosing the best platform can seem a little tough.
It must be noted that currency exchange rates and transfer charges differ across online money remittance providers. If you want to identify the best online service provider, you should take into account all vital factors like transfer speed, fees involved, exchange rate values etc.
Pros & Cons of transferring money via online service provider
- Extremely competitive rates – If you can find a better rate, we promise to beat it
- There are no hidden charges.
- Using an Online Service like BookMyForex is 100% safe, secure and reliable.
- Fast- It takes 12-48 business hours for the funds to reflect in beneficiary’s account
- Visit online from anywhere, anytime
2. Issue a currency demand draft
In simple terms, a demand draft (DD) is a prepaid payment instrument that is often used for overseas money remittance. It is issued in the currency of the foreign country where you are planning to send money. The bank that issues demand drafts charges a nominal fee for the same. Based on RBI’s guidelines, the validity of a demand draft does not extend beyond 3 months starting from the date of issuance.
The biggest issue with demand drafts is that they are difficult to revoke once issued. If you ever change your mind and decide to cancel the demand draft, you will have to drive to the bank branch where you had originally applied for the DD. Unlike cheques, currency demand drafts can be encashed without signatures.
While DDs are a cheap and safe medium of remittance, they can take longer durations to reach the recipient abroad. If you have ample time in hand, you can opt for foreign currency demand drafts.
3. Obtain an international money order
As surprising as it may sound, money orders have been in existence before the launch of electronic wire transfers. This method of remitting money has been traditionally used by people who did not have much technological awareness. The distinguishing feature of money orders is that they do not rely on digital means at all.
Simply put, international money orders are issued either by banks or postal services, and they are converted to the currency of the country where the recipient is located. Once the recipient gets the money order, he/she can encash it at cooperating banks and post offices. However, international money orders are deemed an inapt choice for sending money overseas.
The reason being that the money order system was founded in 1792 and it is totally outdated now. In case you are planning to send money via an international money order, confirm beforehand whether the order would be accepted in the destination country or not.
4. Opt for the wire transfer facility via banks
People across the country are increasingly resorting to electronic wire transfers for remitting funds from India to overseas. The wire transfer facility is gaining ground among remitters owing to its fast delivery speed and low service charges compared to other modes of transferring money. Nowadays, there are a plethora of financial institutions that offer wire transfer service.
In layman’s language, wire transfers involve the remittance of funds from an Indian bank account to a foreign account. This mode of money remittance is facilitated through the SWIFT network, which is a messaging protocol that enables secure money transfer worldwide.
Participating banks use the SWIFT network to transmit transaction information via a standard system of codes.
People who avail wire transfer have to share details like beneficiary’s account number, address proof, SWIFT code etc. The best part about the wire transfer facility is that it does not entail exorbitant fees. Since wire transfers take only around 12 to 48 hours to complete, they can prove to be a lifesaver in times of emergencies when financial assistance is needed urgently.
Pros and cons of transfer money via bank
- Easy to arrange – your bank will guide you through the process and you might even be able to make transfers from your mobile phone.
- Convenient – Banks have their branches in every city and town.
- Safe and secure.
- You may not get the desired foreign exchange rate.
- Banks charge a fee which can be up to 5% at times.
- Not the fastest option, takes 4-6 business days.
Money transfer orders in India have indeed skyrocketed in recent times. In fact, outward remittances in FY’20 amounted to an all-time high of $18.75 billion under the Liberalized Remittance Scheme (LRS). Payments for medical treatments, educational fees and travel expenses etc., have all contributed to the growing demand for international remittance.
Although people can remit funds via a variety of mediums, your choice should be determined based on the purpose for which you are remitting funds. For maximum security and convenience, it is best that you transfer money via a reliable and reputed remittance service provider.
Choosing an online remittance platform will ensure a transparent transfer process alongside providing you with the most favorable exchange rates in the market. Since the online transfer service can be accessed from anywhere in the world, you are sure to experience utmost convenience.
Given below is a table showing why BookMyForex has an edge over other money remittance service providers.
|BookMyForex||Other Service Providers|
|Allows you to freeze live rates for up to 3 business days to avoid any price rise.||Offer poor fixed exchange rates which can substantially increase transfer costs.|
|Blazing-fast transfer speed - beneficiary receives funds within 4 to 24 hours.||International transfers can take up to an entire week to complete.|
|The money remittance charges are minimal compared to other service providers.||Transfer charges can be as high as ₹2,500.|
|Provides the best deals through its tie ups with a wide range of leading banks.||Limited network of partner banks.|
|Best customer service can be availed easily via a call/chat or email as per your convenience.||Unresponsive support services.|
Q1. What are the money transferring options that are not best for Indians?
Foreign Currency Demand Draft/Cheque: Cheque/Demand Draft is the slowest method for sending money abroad or even within a country. The Demand Draft or Cheque will travel for days and even weeks before the recipient is able to receive it or cash it. You can try this method if you have unlimited time in your hand. Though this is one of the safest money transferring methods.
Money exchangers: They are fast but very expensive and not entirely reliable or secure.
Q2. What are the money transferring ways that are best for Indians?
Online Forex Companies like BookMyForex: Fast, safe, reliable, and secure. Zero charges, no hidden costs, and better rates than anyone else.
Wire Transfer via banks: Wire transfers are direct bank to bank transfers where money from an Indian bank account is directly transferred to your beneficiary’s bank account abroad. Wire transfers from India are the best and most convenient way to transfer money abroad.
Q3. Can I use a money exchanger to Transfer Money Abroad?
No, you should not because of following reasons:
- Fees: these services can be fast, but expensive especially high for smaller amounts
- They are not as safe as Banks or online forex platforms like BookMyForex
Q4. What is the cost to Transfer Money Abroad?
The costs are in three parts:
- Foreign exchange rates
- What the company will charge you for sending money abroad.
- The receiving Bank’s charges
Companies like BookMyForex give you guaranteed best rates. If you find a better rate quote, we promise to beat that rate.
Q5. What documents or details do you need to transfer money via bank?
You need the following documents and details:
- Recipient’s International Bank Account Number (IBAN) and Bank Identifier Code (BIC)
- IBAN and BIC from your own bank account.
- You have to present a valid identification document (passport, voter ID card, driver’s license or proof of possession of Aadhaar number) along with your PAN card
Q6. What documents or details do you need to transfer money via Bookmyforex?
You need the following documents and details:
- Original and valid passport
- Valid visa for the country of travel (except where VISA on arrival applies)
- Confirmed ticket-showing travel within 60 days of taking foreign exchange
- PAN (Form 60/61 in case PAN missing)
- Apart from this KYC of sponsoring company would be required as per RBI guidelines
Q7. What are the Alternative ways to Transfer Money Abroad?
For many purchases and payments, buying a Forex Card from BookMyForex is a convenient alternative to money transfers. You get following benefits:
- Best rates (If you can find a better rate, BookMyForex promises to beat that rate)
- Best customer support, available 24×7 on every medium (FB/Twitter/Call/Email)
- There are no foreign transaction fees,
- There are no charges or fees
- In a case of an emergency, BookMyForex will arrange for an emergency cash
Leave a Reply