If someone in your family got accepted into another country to pursue their higher education and is regularly making tuition payments on time, then it might mean that they are in use of international money transfers, particularly from their family members. So if you are wondering how this process works, we have a blog for you. This might also help you understand how to send money abroad from India, in case a situation arises when either you are in need of money abroad or need to send someone money abroad from India. To better understand sending money abroad from India, we urge you to read this blog! It shall also include the option of a forex card!
As many of us know, sending money abroad in cash is certainly not feasible, which is why digital transactions are the way to go. Let’s understand the best way to pick an international transfer, be it online or offline.
Using a Bank to Make a Wire Transfer
With a bank account, you make transfer money internationally from India through a SWIFT transfer. A SWIFT transfer is essentially a standardised method to internationally transfer money from one bank to another all around the world. It is extremely secure and can be used by parents to send their children money abroad.
Now, some of the crucial details needed to make a wire transfer of this nature are listed below.
- Beneficiary bank BSB code (for Australia)
- Beneficiary bank routing number (for the USA)
- Beneficiary bank transit code (for Canada)
- Beneficiary bank address
- Beneficiary bank account number
- Beneficiary bank name
- Beneficiary bank SWIFT code
Through these details, you will be able to identify the particular bank account of the recipient who is staying abroad. It is a secure process, with the additional provision of making or booking your order online.
Verify Currency Rate
One of the most important factors to consider is the rate of foreign currency conversion while sending money abroad. So it depends on the banks and the financial institutions as each has its own exchange rates. Choose wisely and carefully.
The Means of an International Money Order
One of the most preferred ways of money transfer for many older generations in India is making use of the means of an international money order. It is a kind of offline money transfer where money orders can be deposited in the bank account that can then be cashed at any of the cash checking locations when in need of the money. It continues to be a safe and secure way to send money abroad from India, for Indians.
Foreign Currency Demand Draft
The next option to send money abroad from India is availing the method of drawing demand drafts in foreign currencies. It is an offline method but can help you easily send money abroad from India by visiting the bank. Depending on the country the recipient is currently staying in, you can visit your bank and draw out a demand draft of the currency of the recipient country (for example, USD), and mention the amount of money to be transferred. Next, the equivalent of the amount will be deposited in the recipient’s bank account which they can then withdraw in their respective country.
Bank Drafts or Cashier’s Checks
Sort of similar to the process we just mentioned above, Bank Drafts or Cashier’s Checks can be used to send money abroad from India. In this process, you shall be required to physically purchase bank drafts or cashier’s checks in the currency of the recipient country. Now, this is a comparatively affordable method, though it takes a longer time to reach the destination bank account. Additionally, you also get the advantage of tracing bank drafts or cashier’s checks.
Forex Cards
Going for Forex cards is one of the most planned and convenient methods. You simply have to load the card with money before the recipient reaches their destination, and hand it over to them. They can then use the card to make all kinds of payments, as well as avail of services in the foreign country. Though it does depend on the services allowed by the bank. The forex card can also be credited with additional money when it reaches its limit.
Make Use of Fly Finance
Leverage Edu offers forex services through Fly Finance, which makes sending money abroad from India easy and accessible. Some of the USPs of using Leverage Edu’s Fly Finance Forex Services are listed below.
- It is cost-effective.
- It is transparent as there are no fees hidden behind this method.
- For customers, it is as fast as making the payment in 5 to 10 minutes.
- There’s no kind of paperwork needed except an Aadhaar/Driving License, and PAN of the remitter.
- The whole process is digital and easy to use!
Factors to Consider to Send Money Abroad from India
Now that we have discussed the most convenient and prominent ways to send money abroad from India, let’s also have a look at some of the factors to consider during this process.
- Expected Time Frame: Do note that the time frame of making the international money transfer and the credit of the same amount in the recipient’s bank account can take up to 24 hours to 48 hours. Time can be longer and even extend for days in case of offline transfers.
- Exchange Rate: Depending on the foreign exchange rate, the amount of money you send abroad from India can vary from country to country.
- Additional Transfer Charges: While you send money abroad from India, there shall be fixed or percentage charges that you need to pay, including foreign conversion or services tax.
What RBI Says on Sending Money Abroad from India?
The process through which the Reserve Bank of India (RBI) allows Indian citizens to send money abroad from India is called outward remittance. This outward remittance can be made with the help of digital payment platforms, banks, or even post offices.
Do note that RBI has set the limit at INR 2 crore per financial year for resident individuals to send money abroad from India. This is as per the Liberalized Remittance Scheme.
Additionally, the required documents to make outward remittances are mentioned below.
- PAN Card Copy
- Proof of Adequate funds
- Original fee slip where necessary
- Form A2
- More based on the bank and platform.
RBI has also mentioned that the only approved institutions to send money abroad from India are either banks (Authorised Dealer – I) or money changers (Authorised Dealer – II).
FAQs
Ans. ICICI Bank is one of the most preferred ones to send money abroad from India.
Ans. The cheapest way is to simply transfer the money from your bank account to the recipient’s bank account.
Ans. If the amount sent is more than INR 7 lakh, a 5 per cent TCS will be applicable.
Learn about sending money abroad with Leverage Finance and banking for global students through Fly Finance. For more information on study abroad, reach out to Leverage Edu specialists!
