Whether you are a long-term NRI residing abroad, or even a professional person residing abroad for a short duration, at some point in your life, you will be required to send funds back home. You may be sending funds for various reasons, ranging from home expenditures, family maintenance or purchase of monthly items amongst many other reasons.
But while the reasons may vary from individual to individual, there also comes a choice when it comes to considering the best option to make a money transfer to India. Listed are the different options you can consider, as an NRI to send money to India:
Money transfer companies: There are plenty of money transfer companies that offer a variety of money transfer services, which is also inclusive of options to transfer money back home. Most of the services focus on a secure, fast and inexpensive mean to send money to India. It also comes with several other benefits, such as beneficial exchange rates, lower transfer fees and an excellent customer service.
Wire Transfer: Wire transfers are very common, especially for international money transfers and US banks. With a wire transfer, you can directly transfer funds from any foreign bank account, which normally takes a take a few days. Wire transfer services can vary from bank to bank, so you will need to compare the different bank offers before selecting the one that suits your financial needs.
NRI accounts: Over the last few years, NRI accounts have slowly become one option to make a money transfer to India. But to make a money transfer, you will first need to open the NRE account. Through this account, you can deposit your foreign funds and transfer it back home through an authorised recipient back in India. This authorised individual can then withdraw funds in Indian rupees. Normally, this transaction will take around a few days to a week, and is normally non – taxable.
Personal checks: You can make a personal check to the recipient who can then deposit it in the bank account back home. However, you will need first to check if your bank accepts foreign checks. Additionally, you will need to check if there is a verification process to clear the deposit. The recipient may may also have to pay a few funds to cash the check.
Bank Draft in Indian Rupees: Selected Indian banks provide a facility where bank drafts can be made in Indian currency. This can be cashed instantly in India. Some of the bank drafts are also free if they surpass a certain amount, for example, Rs. 50,000, whereas any lower amount will attract a small charge.