What are the ways to send money to India? www.deekpay.com

Indiahas the largest number of overseas citizens with 16 million non-resident Indians. With such a large expatriate population, the demand for money transfer services in India is very high. The major countries to send money to India are USA, Saudi Arabia, Canada, UAE, Qatar, UK, Kuwait, Oman, Germany, France, Australia and China. Non-Resident Indians, who want to send money to their family or friends in India, can either send money to India from abroad or bring it to India and exchange it there. Which of these two methods is the most cost effective? In this article, we will analyse in detail the advantages and disadvantages of each method, as well as the advantages and disadvantages of sending money toRemittances from IndiaThe most convenient and cheapest way.

Ways to send money to India

As mentioned earlier, Non-Resident Indians can either send money to India from their country or bring it to India and exchange it there. The choice depends on a number of factors, such as the urgency of sending the money, the ease of sending and receiving the money, or finding the cheapest and most economical way to send cash to India.

1. Remittances from foreign countries to India

NRIs can remit money from their country to India and when the money is remitted to India it will not be taxed. The reason for this is that India has signed Double Taxation Avoidance Agreements (DTAA) with other countries. Under DTAA, foreign taxpayers can avoid paying double tax on their income from the source country when they remit money to their country of residence. Here are three ways in which NRIs can send remittances to India.

:: Banks

NRIs can send money directly from a foreign bank account to a recipient's bank account in India. This is called Funds Wire Transfer. In a wire transfer, it usually takes up to 48 hours for the money to be deposited in the recipient's bank account. Your overseas bank will provide you with the foreign currency - Indian Rupee exchange rate, which they will use to build up a profit margin. In addition, wire transfers incur service costs. When the money reaches the recipient's account in India, the recipient bank may again charge a wire transfer fee. In return for the higher than average service cost of wire transfers through banks, we get a safe and tested method of sending money overseas.

:: Remittance companies

Another way for NRIs to send money to India is through money transfer companies such as Western Union, Emirates, Transferwise, and others. The money transfer companies offer more ways to send money other than wire transfers to bank accounts. For example, with Western Union or UAE Money Transfer, non-residents of India can send money by simply walking into one of their centres or making a bank transfer and handing over cash to them. The money will then be converted into Indian rupees at an exchange rate they set. The recipient can immediately go to the nearest Western Union/UAE money transfer centre in India to collect the money. It can even be delivered directly to the recipient in India immediately.

The advantage of money transfer companies is that the exchange rate is more competitive than banks. Moreover, the speed of money transfer is the fastest here. This service is great for non-resident Indians who want to send money within the same day. The disadvantage is that the savings from the favourable exchange rate may be lost due to the high service cost of cash payments.

Banks and money transfer companies usually offer online portals to initiate money transfers to India without physically travelling to a branch. Therefore, if you need to transact money transfers with your bank/remittance company conveniently, check if they offer the same online portal.

:: Online payment system

Online payment systems became popular in the early 2000s with the advent of PayPal. Other well-known brands in this category include Dwolla, Skrill, Payoneer, Payza and others. Of the three ways to send money to India from abroad, this is the one we recommend the least. Online payment systems are notorious for charging customers extremely unfavourable exchange rates. In addition, they usually charge a service fee from both the sender and the recipient. Poor exchange rates + high service fees can eat up a large portion of your transferred funds. Another disadvantage of online payment systems is that both parties need to open an account with them. Unlike the bank accounts that most people have, online payment system accounts are not common and can be a hassle to open.

When there is a need to send money immediately to a family member or a relative or friend, it is best to choose a money transfer company as they offer better exchange rates for wire transfers than banks. In addition, they even offer immediate home delivery of cash to recipients who do not have a bank account.

2. Currency exchange on arrival in India

For non-residents of India, apart from sending money to India from abroad, they can carry currency with them on arrival in India. These currencies can be exchanged at banks or money changers when the exchange rate is favourable. Currency carried by NRIs is not taxable under the DTAA.

foundationReserve Bank of IndiaThe provisions of the

Anyone can carry foreign currency into India without restriction. Currency in excess of US$ 5,000 or its equivalent in other currencies (cash) or US$ 10,000 or its equivalent in other currencies (cash + foreign exchange card + traveller's cheques) must be declared to the Customs Authorities using a Currency Declaration Form (CDF). Ways to Exchange Currency in India for Non-Residents of India :: Banks

Banks can help non-residents of India to convert foreign currency into Indian rupees. The process is fairly simple. Visit your bank branch in India and initiate a request to sell foreign currency. For amounts worth less than Rs 50,000, the currency can be converted and returned directly to the customer in cash. For amounts worth more than Rs 50,000, the amount will be credited to the customer's bank account. If you have an account with a public sector bank, it is better to exchange foreign currency there as they offer better currency exchange rates than private sector banks.

:: Money changers

Money changers are RBI-approved entities that are authorised to perform foreign exchange operations such as currency exchange and/or overseas remittances. Some of the popular money changers in India are Muthoot Forex, Cox & Kings, Unimoni, Spice Money, Orient Exchange and others. The exchange rates offered by money changers are on the whole more competitive than banks as their main business is handling foreign currencies. The exchange rates are more favourable to their customers and hence they are the preferred choice of many. On the other hand, with banks, this is not their main business and therefore the exchange rates used to exchange currencies can be unfavourable. In addition, you can go into any currency exchange shop to exchange currency, but not a bank.

summaries

Now let's summarise the methods of sending money from abroad to India for non-residents of India by way of a table.

Remittances from foreign countries to India Money Transfer Methods Speed Cost Convenience Coverage Banks 2 - 4 days Highly convenient as almost everyone has a bank account Money is deposited directly into the recipient's bank account. Money can be withdrawn at an ATM, at a bank, or through online banking Using money transfer companies 1 - 4 days also offers faster express money transfer services Below Banks and Online Payment Systems Convenient because money transfer companies offer online portals to initiate money transfers. There is no need to open an account with them for the money to be deposited into a bank account or delivered to the recipient's home. Money transfer companies offer more channels for delivery of funds than banks. Online payment systems 1 day higher than banks are not convenient anymore, both the sender and the receiver need to have the same online payment system account The money will be deposited into the recipient's online payment system account. It can then be kept or withdrawn to a bank account. Comparison of money transfer methods from foreign countries to IndiaCurrency exchange on arrival in India Remittance MethodsSpeedCostConvenienceCoverageBanks Same Day Higher ConvenienceBank branches are located almost all over India. Money changers same day lower than bank convenience can access any money changer and sell foreign currency. While money changers are not as common as bank branches, one can use a forex aggregator platform to find nearby money changers that offer good exchange rates. Comparison of ways to exchange currency in India

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.