Know The Types Of Payment Methods Used For Remittance

Indians living abroad has become the norm for pursuing higher education and conducting business. When you move overseas as a student, on a business, or as a migrant worker, you may need to send money back home for financial upkeep. Finding the right International Money Transfer service becomes essential if this is a standard requirement. You do this by analysing the costs, transfer time, exchange rates, suitability, etc.

Now, there are several types of payment methods. The service you routinely opt for is not necessarily the best for all transactions. Specific mediums are best suited for payments. You must figure out this aspect to choose the correct mode to send money overseas. This helps you save costs and find an apt solution for your transfer needs. Let us understand the types of Remittance and payment modes for the same.

Types of Remittances

1. Inward: It refers to the funds you receive in your Bank Account domestically or internationally. For instance, if you get funds from a relative living abroad in your local account in India, it is called Inward International Remittance. This is the most common type of transfer as Indians support their family in India by making international transfers.
2. Outward: It is an outward transfer when you send money abroad from your local Bank Account. For example, parents in India pay for their child's higher education overseas by using the International Fund Transfer service.

You have the choice of the following payment methods to carry out Inward and Outward international transfers:

Wire transfer

This is one of the most favoured methods to send money from India to the USA. It also works well with all kinds of international transfers. It is the relatively latest mode that comes with lower fees. Almost all financial institutions, including banks and authorised money exchanges, offer this transfer service. It takes three to five business days to send funds through this medium. You may track the same through the International Money Transfer app.

Bank drafts

Cashier cheques and bank drafts are available at various banks across the country. You can physically purchase the drafts or cheques in the recipient country's currency. This is another cheaper method to send money overseas. However, it takes the longest to transfer funds through this medium. On the brighter side, the drafts are traceable to check if they reach the destination.

Online Money Transfer

If you are looking for a hassle-free and straightforward method, Foreign Remittance is the apt choice. Most Indians use it to make international transfers. The process requires you to enter the recipient's account details, destination information, contact number, etc. Additionally, it uses a Society for Worldwide Interbank Financial Telecommunication code. This is used to recognise the bank branch in the destination country.

Types Of Savings Account You Can Open In India

For many of us, our first Bank Account is our parents' open or the one we hold with them. The moment we start earning, we realise we need to secure our hard-earned funds in our Savings Account. This is when we visit the bank for opening an account and start our independent financial journey.

In India, you can do multiple online Savings Account opening as options to choose from. Let us understand them in detail.

Regular Accounts

This is the most common one where there are limits on the funds deposited. However, there are restrictions on withdrawals. You can do so only through cheque payment slips or ATMs. You are given a chequebook after opening the account and need to maintain an average monthly balance.

Joint Accounts

If the account gets operated by more than one person, it is a Joint Account. In India, such accounts are more of a family account where four people are named as account holders. If all the holders are adults, the banks offer a Debit Card to them. All adult account holders can jointly operate the account.

Salary Accounts

Most organisations provide such accounts to their employees when they join. Such an account is called Zero-Balance Account, and here, you need not maintain a monthly average balance. Generally, these account holders are provided with an instant welcome kit that includes a chequebook, passbook, Debit or ATM Card, and Online Banking access credentials.

Online Accounts

Also called an online account, this is ideal for those who want to manage their banking needs seamlessly. You also get high Savings Account interest rates instead of the Regular Account. You also need not pay any account maintenance fees and no requirement of minimum balance maintenance too.

Senior Citizen Accounts

Specially meant for the older people, particularly those over 60 years and above, they are offered higher interest rates, around 0.5%, on their savings. They are also given waivers maintaining a minimum balance and offered better interest rates on term deposits.

Women Accounts

Ladies over 18 years and above can open a Saving Bank Account that comes with maximum benefits. Opening such accounts mean higher interest rates. Women also receive discounts on other bank products and complimentary Insurance cover. They also get Debit Cards with high withdrawal and shopping limits.

Minor Accounts

A Joint Account, here the primary holder is the minor and operated by one of the parents or guardians until the minor turns 18 years. Once turned 18, the account automatically gets converted to a Regular or Joint Account.  

Pradhan Mantri Jan Dhan Yojana

For encouraging all Indians, especially the lower-income groups to open a Bank Account offline or on the Banking app, the Indian Government launched this unique Savings Account. There is no average monthly balance maintenance commitment. Account-holders get Rupay Debit Cards, and free Accident Insurance Cover worth Rs. 1 lakh and Insurance cover of Rs. 30,000.