In recent times, a lot of Indians are travelling abroad to explore new opportunities in work and education. One needs funds to survive on foreign shores and given that it shouldn’t be surprising that sending money from India has increased in the last few years.
If you are clueless about the ways to transfer money abroad, read on to know more:
How to transfer money internationally?
- According to the directives given by various foreign regulations, the Reserve Bank of India (RBI) has laid down a process called outward remittance to transfer money on foreign shores.
- The money transfer or outward remittance can be made through the post office, banks or through a digital payment portal.
- An individual or entity can transfer $250,000 from India ot foreign shores for medical reasons, business visits, education, leisure, donations or gifts, and other necessary expenses of relatives abroad, per financial year.
Documents required to transfer money internationally:
The following documents are required to transfer money internationally or outward remittance:
- Permanent Account Number (PAN) card
- Original receipt/ bill/ fee slip, etc.
- Proof of adequate funds
- Form A2
Factors to consider while transferring money internationally:
Consider the below-mentioned points while transferring money internationally:
- Exchange rates: You will have to pay the exchange rate to transfer money abroad. The exchange rate is the value of one currency for conversion to another.
- Transfer speed: The ideal time required for transfers is 48 hours to 72 hours. However, in the case of the money sent through demand drafts and cheques can take up to four to five working days.
- Overhead charges: In most cases, you will be charged foreign conversion tax, transfer fee and in some cases service tax, while transferring money abroad.
Ways to transfer money internationally:
With digital payment portals gaining popularity in recent times, there are multiple ways to transfer money abroad. The method you choose for money transfer depends on the purpose of transfer, time in hand, the currency of the country you are sending in, etc.
In case you are not aware of all the transfer options available, have a look at the below mentioned points:
- International money order: In early times, money orders were the preferred way to transfer money. In money order, you need to deposit into your bank account and it can be cashed at any of the check cashing locations. It is one of the budget friendly and safe ways to transfer money abroad.
- Bank drafts: Bank draft is an ideal way to transfer money abroad as it is inexpensive and safe. Bank drafts are available at most of the banks and you can buy one in the currency of the location you're sending money to. The only drawback to bank draft is that they take a longer duration to get completely processed in comparison to other transfer options.
- Online money transfer: This is an easy process and used by majority of Indian to transfer money on foreign shores. This process requires details like account holder’s information, destination bank’s details, etc. However, you may be charged some heavy overhead charges in this process as it excludes intermediator banks.
- Online wire transfer: This is one of the new ways to transfer money internationally. Various financial institutions like Book My Forex, Western Union, etc. are providing online wire transfer services. The intermediator banks are included in this process; thus, this process is comparatively affordable and safe.
Apart from the ways mentioned, there are a plethora of ways to transfer money on foreign shores. A lot of digital platforms and companies are providing money transfer services. However, it is important to be careful and check if the service providing company is reliable. Do make a note of the exchange rates and overhead charges while making a transfer. Maintain a record of all the transfer transactions you have made for future reference. Beware of scams and frauds.