Sending Money Overseas from India

Indian Government allows you to send money from India with some restrictions. The amount you can send outside (outward remittance) the country is limited by the Foreign Exchange Management Act.

There are many options available to transfer money globally from India. However, choosing the best one is difficult. Hence, we will discuss some of the popular methods. Also we will try to give you some guidelines to help you select the best suited way for you.

What are the Popular Methods to Send Money Overseas?

Following are the various methods to send money overseas from India:

By Cheques - This is the simplest way. Write a check and post it to the beneficiary. But the overseas mail will take 4 to 10 business days to reach it to beneficiary. And also the time period to clear check will be added to it. So though it is easy, it is very time consuming. As a result it is not a very useful method.

By Cash Transfer - In cash transfer, you make payment to the agent located at your place. The beneficiary himself can collect the money send by you in cash from the nearby agent. The most popular cash transfer service is MoneyGram.

By Foreign Currency Demand Draft – In this method, your bank issues a foreign currency demand draft which the beneficiary can deposit in her country’s bank. Indian banks can help you create Foreign Currency Demand Drafts in USD, GBP, SGD, EURO, CAD, and AUD.

By Wire Transfer - In this method, money is transferred from one bank account to another. According to your instructions, the bank will transfer the money to other bank located in beneficiary’s country.

By Sending a Debit Card - This is a useful method for those who transfer money frequently to same beneficiary. First the card is sent to the beneficiary. Then whenever you want to transfer money you have to just reload it. The beneficiary can withdraw money from the ATM.

Precautions while Sending Money Overseas

Before remitting money or before deciding which service you are using, there are few aspects you should keep in mind:

• There are many websites online which provide the money transfer services. Do not hastily register on any websites. And never fill in all your bank details on any website. First find out their reliability and trustworthiness. These websites should be well known and having good reviews. Always work with the services which are offered by recognized banks or websites.
• While transferring money, due to some sudden and unavoidable reasons the transaction might get delayed. Arrange your transfer keeping this in mind.
• If you are using any service first time, send a small amount in first transfer. Find out how the transfer takes place and then decide to use for large amounts. If there is no urgency of transferring money, then this method will work for you.

Exchange Rates and Transaction Fees for Transferring Money Overseas

Most of the money transfer services charge fee for every transaction. The fee varies from service to service and depends on many factors.

However some services claim that they provide their services for free. You should be very careful with such services. The reason is that they make up their charges by giving you poor exchange rate.

So next time when you will be planning to send money to another country, do not forget these important points mentioned above. Try to find out the best service for you, make your transfer with sufficient time in hand and be careful of tricky services and websites.