Things To Remember When Sending Money Abroad From India

By Author: Nitin Motwani
Total Articles: 11
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When sending money abroad from India, it is important that you be apprised of a few things. These include credibility of the agent, adherence to regulatory requirements, options available, convenience and rates. Read on to know how to ensure a better deal.

You may need to send money abroad from India for many reasons – education, investment, travel, medical requirements etc. Earlier only banks and a few money transfer companies used to facilitate money transfer abroad. They did transfer money securely, but it was expensive and the process was cumbersome. However, the advent of Internet made things change.

There are companies that don’t just provide foreign exchange services at better rates, but the paperwork is also minimal. Their suite of services includes currency notes, traveller's cheques, prepaid travel cards, foreign currency wire transfers and foreign currency demand drafts.

It is also important that you be apprised of a few things when sending money abroad. Understanding these points will enable you to protect your interests.

Credibility of the Agent

When you are using a money ...
... transfer services agent, it pays to check their credibility. You need to check if

they are an RBI authorized FFMC

they have Correspondent Bank Relationships (banks conduct an in-depth due diligence before signing up, so you can assume that your money is safe)

they are willing to provide you with quick and satisfactory answers to your questions

Knowledge of Nuances

When processing your transactions, banks use several codes and other parameters: IFSC, EFT, RTGS, SORT, SWIFT, IBAN, etc. You may or may not know the specific details required for remittance transaction. Countries may have different outwards and inwards limits on amounts that may be transferred using different instruments. They should advise you through it as any errors may delay processing of transactions.

AML and KYC Requirements

There are AML (Anti-Money Laundering) and KYC (Know Your Customer) requirements for remittance transactions and an agent is required to fulfil these requirements. Regulatory bodies insists on the agent capturing the identity of the sender and hence you should cooperate with them and provide all necessary documents.

Options Available

Consider the options an agent is providing you. Although transfer is most commonly used, it may be expensive as you will need to pay the fee of the international bank as well as the agent’s commission. There are alternate options such as Demand Draft if the amount you want to send is small. When using the services of an online agent, you will usually be required to book a remittance order. Thereafter you can pay using either a cheque, NEFT transfer or an INR demand draft. There are agents who will assist you through out the transaction & offer door delivery services.

Competitive Pricing

Swift services do not necessarily mean more $$$. Make sure that your money remittance agent is providing you the services at competitive rates. To send money from India, find a company that offers you better rates and convenience. You may book a deal with them on the Internet and they will do the needful. If you are someone who is short on time, choosing an agent that provides you home service will be better.

It is advisable to compare the services of various agents and pick up one that offers convenient as well as cost-saving deal.

The author of this article is associated with Book My Forex, a leading online money exchange and remittances portal. For currency exchange Delhi has few providers better than them.