Best way to transfer money internationally from India
People transfer money internationally from India for many reasons. From supporting students and relatives who reside abroad to buying things from international vendors, international money transfer from India is becoming much more common.
Over the years, cross-border remittances have become much simpler and quicker with high success rates. While this involves many technical terms like exchange rates, a newbie can get easily overwhelmed.
Keeping abreast of the current RBI regulations and figuring out the best way to send money abroad from India will avoid financial complexities.
Overview of International money transfers in accordance with RBI
RBI, the financial institution that controls and regulates incoming and outgoing funds in India, has designed ways to move money from India to other countries. The process of sending money from India to abroad is called outward remittance.
There are multiple ways to make outward remittances. You can send your money through banks, deposit it in the post office, or use payment wallets.
An individual or an organization can transfer money up to USD 250,000 from India to foreign countries. The purpose can be for medical reasons, educational fees, leisure buys, or donations and gifts.
To send money abroad from India, the sender needs to possess the following documents:
• PAN card of the sender
• Fully filled form A2 with beneficiary details
• Proof to show that your account has adequate funds (bank statements)
• Original copy of bill from the source that requested money
Factors to consider when doing international money transfer
Wire transfer in India differs a lot from domestic transfers and involves Indian and foreign factors. You must be aware of the following terms before you initiate an international money transfer from India.
1. Transfer speed
Your beneficiary might be in urgent need of funds. Or they could wait a day or two. However, you should know that different money transfer options can take different times to reach.
It can take a few hours, to three to five business days, to ideally send money abroad from India. Traditional methods like wire transfers and checks can take days, whereas online money apps can take lesser time than that.
2. Exchange rates
When you send money to another country, you convert your native currency into theirs and make the transfer. There is a varying value that is involved in this currency exchange.
That’s called the exchange rate, which the sender bears to exchange currency from one to another. Exchange rates play a key role in determining how much the sender must bare to trade money in other currencies.
Exchange rates are never constant and vary based on supply and demand.
3. Overhead charges
To transfer money internationally from India successfully, you need a whole banking network to work for you.
In order to cover the payment processing and other deductions at banks, the sender must incur overhead charges along with the exchange rate. Overhead charges are fixed percentages that vary based on the amount range you transfer.
For example, a payment service provider/bank can charge you 1% of the transferred money to send money abroad from India.
There are providers who don’t display transaction and exchange rates upfront. Here, you end up spending high. It’s always best to find out payment systems with fair and open charging patterns.
4. Transaction limits
According to the RBI, there is no cap on remittance amounts or the number of times a sender remits money internationally. But depending on the bank or financial institutions or banks involved, there can be transactional limits placed.
It also varies depending on the SWIFT or non-SWIFT payment options you select and the location you send money to.If you run a business, this cap on the number of transactions or amounts can affect your business.
Before you choose an exchange service provider, keep in mind to check their plan thoroughly.
5. 24x7 customer support
Account providers must continue to serve the customers even after opening a business bank account in Singapore. They must offer 24x7 customer support to their clients.
Investors should have a business bank account with banks that offer assistance regardless of any event or time.
6. Conversion fees and forex charges
As an ambitious investor, you must be looking forward to doing business transactions outside the geographical boundaries of Singapore.
In this case, choose a bank that has the least forex charges and currency conversion rates. You must check the conversion fees before opening a business
7. Other miscellaneous charges
Something to consider before opening a business bank account in Singapore is to check if the bank charges any hidden fees. Bank accounts should not add much to the miscellaneous expenses of your balance sheet.
8. Online banking option
Prior to opening a business bank account in Singapore, it is important to know if the bank offers the feature of online banking. As a businessperson, you get less time to visit the bank. With online banking, you can save a lot of time and effort.
How to make an international money transfer in India?
Based on your purpose, transfer time, receiving country, and overhead charges, you can choose one among the following methods. The common ways to make an international money transfer from India are.
1. Bank drafts & Cashier checks
Bank drafts and checks are available in many nationalized and private banks in India. You need to buy these checks in the currency of your recipient. If you want an affordable money transfer method and are okay with longer durations, checks are the best way.
International cashier checks are traceable. You can always reach out to the banks to find out the status of your deposit. Even if your money doesn’t make it to the recipient account, you can retrieve or resend it by tracing its status.
2. International money order
India Post Limited controls international money orders. Even before checks came into existence, international money orders have been in use. An international money order denotes the mandate of payment to a recipient of the issued sum.
Using this, you can transfer money internationally from India at reasonable rates. They have a good success rate compared to checks because they don’t bounce and request resending.
3. Online money transfer
This is the most common method used by individuals and businesses to transfer money instantly. The rates can be pretty competitive and even higher sometimes, depending on the provider.
But you can send money from anywhere — and you don’t have to visit a bank or post office to send money abroad from India. It only needs the recipient’s account number, your account number, and the receiving bank’s SWIFT code.
As many providers are available online, it’s possible to track the remittance on any occasion. As there are many remittance transfer services available all over the country, it can be hard to hand-pick a legitimate provider with the best rates.
5. Online wire transfer
Online wire transfer services are provided by authorized exchangers like Book My Forex, Western Union, etc. They have physical branches everywhere as well as available online.
Following simple steps, you can get started and transfer money internationally from India 24/7. Tracking money online and getting on-call support during business hours are available with these providers.
Making wire transfers in India is much cheaper than in another medium.
International money transfers from India with Volopay for businesses
Small businesses never stop their hunt to find the best and cheapest payment products. Volopay will be your safe destination as it offers international money transfers without hidden fees.
Make SWIFT payments with upfront costs and unbeatable exchange rates. Schedule international payments beforehand and never miss deadlines.
Have recurring payments from international SaaS providers? Schedule them to go out monthly with the help of corporate cards and pay automatically. Volopay is here to systemize your domestic and international payments.
With open integrations, minimize the manual work of transferring payment data to other accounting applications. Monitor your entire business payments from one place and save time for your accounting time.
FAQ's
Any individual or a business can transfer up to USD 250,000 every financial year in various frequencies.
Online money transfer is the best way to send money abroad from India. You can get the best exchange rates and quick transfer options with online money transfer platforms like Volopay.
The amount that bank charges for international transfers vary depending on the range of funds being transferred. If it’s from INR 1,00,000 to INR 10,00,000, a base charge of INR 1000 + 0.5% of transferred amount is charged. Transfers less than INR 1,00,000 are charged a base fee of INR 500.
Indian banks typically charge a convenience fee starting from INR 500. Though the charge varies from one bank to another, they don’t offer international money transfers in India for free.
If you want to avoid international wire transfer fees, you can make an online money transfer, or send a draft check to the recipient if it’s not an urgent fund request.