People want to progress and prosper in life. They have different goals and aspirations to achieve and want to live a happy and stress-free life after retirement. They want to get the best facilities, study in the best schools and colleges, work for the most renowned firms, and earn as much as they desire. The ladder of success does not stop there. Most also work abroad and have their families residing in India.
Monetary requirements can arise at any time without warning. Hence, it is safer to keep some funds aside as savings to meet emergency expenses and other immediate fund requirements. Individuals living abroad can send money to India to help support their families living expenses and keep them financially secure.
Money transfer to India can be costly, slow, and inconvenient; or cheap, fast, and convenient, based on the suitability of the method as per the requirements. Each method has its advantages and disadvantages. Here are the popular ways to transfer money:
- Electronic fund transfers (account transfers): It refers to money transferred directly from the sender’s account to the creditor’s account. Also known as international money transfer, it is a popular option due to its convenience and security. However, it can often be expensive.
Sending money to India can take several days to go through, and there are significant variations in cost due to fluctuating foreign exchange rates. Besides, the fees charged by both the sender’s bank as well as the recipient’s bank can be high, which can drive up the overall cost of the transaction.
- International money transfer operators: Traditionally, sending money abroad was a challenging task. It was expensive and involved several intermediaries. With the arrival of international money transfer operators, the process has become simple. Money transfer services offered by IMTOs are one of the most attractive ways to remit money to India because most of them can provide cheaper and faster transfers with different options to receive money. Send it to a bank account or collect it in cash in India.
Remittance companies still charge a fee to transact money to India. But the degree of margin involved is significantly less when compared to banks. International payments are the core service of IMTOs, so they try to find the best exchange rates possible. Banks are relatively diverse organisations with larger product offerings and tend to focus less on international exchange rates.
