“How To Transfer Money From India To The USA- 2017 Edition”
Transfer Money from India to the USA under RBI guidelines
Want to know How to Transfer Money from India to USA? Confused about what rules will be applicable and what not when you do a money transfer the right legal way?
Read this post to know how to Transfer Money from India to USA as per Reserve Bank of India Guidelines.
Since RBI updated the outward remittance laws which come under the “Liberalised Remittance Scheme” laws have made it easier. The laws are very strict. RBI, India’s central bank and regulatory authority, likes to keep a close check on inflation and other factors that affect the country’s economy. The RBI also helps to keep a check on any illegal money transfer from India. RBI has to be aware that when anyone does a transfer money from India to the USA it is not black money being parked abroad or ‘hawala’ channels being used for illegal activities.
In such a situation, how can you fulfill the monetary requirements of your family or friends living abroad and transfer money from India to the USA? Most people who want to transfer money from India to the USA for the first time and may need to do so in the future are of the opinion that they can use the services of Western Union, when the need arises. You can use the Western Union and MoneyGram to transfer money from other countries to India and NOT to transfer money from India to the USA.
Wire Transfer Money from India to the USA
You can always approach your bank, which is the right way. You can use the services that banks offer like
- Wire Transfer (Swift Transfers)
- Demand Drafts (money orders)
In fact, these are the only legitimate ways to transfer money from India to the USA.
Wire-transfer is the easiest and best way to transfer money from India to the USA. Though wire transfers are actually done by banks, it is cheaper to use the services of companies since like BookMyForex. These online marketplaces will get you a better rate than banks. However, wire-transfers can be expensive. As Banks in India charge anywhere from Rs. 500 to Rs. 1000 to process it. Moreover, most foreign banks that receive the money also charge a foreign correspondent fee ranging from USD 10 to USD 40.
Challenges at Banks for Customers
Banks have their own rules when it comes to doing wire-transfers to transfer money from India to the USA. Most banks process foreign remittances and wire transfers from very few branches. Most of these branches turn away customers unless they have an account with the bank. Much to the customer’s plight, the staff at most banks is not adequately trained on how to do wire-transfers and many banks don’t even have the necessary systems in place. Even basic knowledge regarding the documentation required is lacking. Different branches of a single bank lack the consistency regarding rules of wire transfer. Things couldn’t be worse that this.
Demand Drafts to Transfer Money from India to the USA
You can send money to the US through foreign currency demand drafts. Demand Drafts are are physical paper drafts, issued in a specific foreign currency instead of a sending to a specific recipient. Demand drafts are much cheaper than wire-transfers. You have to pay just the demand draft fee to your bank or service provider. There is no need to pay any fee to the foreign bank receiving the money. This helps you save a lot.
However, the problem with demand drafts is that the process takes much longer to transfer money. It can take longer for the recipient to receive the money because you have to mail the demand draft physically. Once they receive it, it takes few days to en-cash the demand draft. The total number of days combined creates a large gap (maximum up to 10 days) in actually receiving the funds. So demand drafts work out better if there is no emergency. If you need to transfer money from India to the USA on a planned basis with sufficient notice, use demand drafts.