International wire transfer is one of the most secure and fast methods of transferring money internationally. It is suitable for making transactions of big amounts like tuition fees, accommodation costs etc. Wire transfers can be initiated through banks, online money transfer agencies, payment unions etc. It involves money transfers using the SWIFT code, BIC code, intermediary bank account etc. Let’s discuss some of the common FAQs on international wire transfers for students studying abroad.
Table of contents
- What is an International Wire Transfer, and Why Do I Need it as a Student Abroad?
- How Do I Initiate an International Wire Transfer from India?
- What is a Swift/BIC Code, and How Do I Find it?
- Are There Any Transaction Fees Associated with International Wire Transfers?
- How Long Does it Take for Funds to Reach the Recipient’s Account?
- What is the Exchange Rate and How is it Determined?
- Can I Use Third-Party Services for International Money Transfers?
- How Can I Track the Status of My International Wire Transfer?
- Are There Any Restrictions on the Amount I Can Transfer Internationally?
- Can I use My Local Indian Bank Account for International Wire Transfers?
- Are There Any Tax Implications on International Wire Transfers for Students?
- Can I Cancel or Modify an International Wire Transfer Once Initiated?
- Is it Better to Transfer a Lump Sum or Make Smaller, Frequent Transfers?
- What Should I Do if the Recipient Hasn’t Received the Funds on Time?
What is an International Wire Transfer, and Why Do I Need it as a Student Abroad?
International wire transfers are electronic transfers of money across borders. As a student abroad, you’ll likely need it for tuition payments, living expenses, or receiving funds from your family. Wire transfer involves the transfer of funds from one person or entity to another. An international wire transfer can be made from one bank account to another bank account or can be done by depositing cash at the nearest branch of the bank involved.
Also Read: Check this blog and know all the differences between international wire transfers and forex card transactions abroad and choose the suitable option
How Do I Initiate an International Wire Transfer from India?
Wire transfers can be easily initiated through your bank. You need to visit your nearest branch or use internet banking to transfer money. Details like the name of the bank of the beneficiary, account number, SWIFT code of the branch or the BIC Code etc.
What is a Swift/BIC Code, and How Do I Find it?
SWIFT (Society for Worldwide Interbank Financial Telecommunication) or BIC (Bank Identifier Code) is a unique code for each bank. You can find it on your bank statement, or your bank’s website usually provides this information. If you are unable to find such information online, you can visit the branch of the concerned bank and get the respective codes.
Are There Any Transaction Fees Associated with International Wire Transfers?
Yes, banks or online platforms charge certain transaction fees for international wire transfers. These fees may vary depending on the exchange rate, amount, beneficiary bank, sender’s bank etc. Contact your bank for the complete schedule of charges before initiating the transaction.
How Long Does it Take for Funds to Reach the Recipient’s Account?
The processing time may vary depending on the bank, national holidays, type of transaction etc. On average, it takes 24-48 working hours to complete one wire transfer. However, in some cases, it can take anywhere from a few days to a couple of weeks. Factors like the banks involved, the destination country, and any intermediary banks can influence the transfer speed.
What is the Exchange Rate and How is it Determined?
The exchange rate is the rate at which one currency can be exchanged for another. Banks usually offer rates close to the prevailing market rates, but they may add a margin for profit. For example, if you are making a wire transfer from India to the USA, the currency exchange rate for INR against USD will be applicable.
Can I Use Third-Party Services for International Money Transfers?
Yes, there are several online platforms and money transfer services that offer competitive rates and lower fees compared to traditional banks. For example, Western Union Money Transfer, Fly Finance International Money Transfer, or PayPal. Fly Finance is one of the most reliable platforms for transferring money internationally at cheaper rates.
Also Read: Travelling to London for studies? Read about Currency Exchange in London and get complete information about the same.
How Can I Track the Status of My International Wire Transfer?
You can track international wire transfers by contacting your bank and providing the transaction details. Some banks also offer online tracking services. If the branch is nearby, visit the branch and provide them with the transaction details so that they can tell you the actual status of the transfer.
Are There Any Restrictions on the Amount I Can Transfer Internationally?
Yes, there are limits set by the Reserve Bank of India (RBI) on the amount you can transfer abroad. Check with your bank to ensure compliance with these regulations. As stated by the RBI, “There is no limit on the remittance amount as well as on the number of remittances. However, there is an upper cap of Rs.15.00 lakh for trade-related transactions.”
Can I use My Local Indian Bank Account for International Wire Transfers?
Yes, you can use your local bank account for making international wire transfers. However, it is important to understand all major terms and conditions and the schedule of charges set by the bank for all international transactions. Read all details carefully before initiating the wire transfer in order to avoid unnecessary charges.
Are There Any Tax Implications on International Wire Transfers for Students?
If you are transferring money to a foreign country to cover educational expenses, you don’t need to pay any TCS if the amount is less than INR 7 lakh. For all the transactions above this amount, a TCS of 0.5% will be applicable in case the funds are being provided through an education loan. For more queries on foreign remittances, refer to the Liberalised Remittance Scheme of RBI.
Can I Cancel or Modify an International Wire Transfer Once Initiated?
It is very difficult to cancel or modify the transaction after it has been initiate. Always double-check all the details like bank account number, SWIFT code, BIC code etc before initiating an international wire transfer. Transaction once initiated cannot be undone or cancelled.
Is it Better to Transfer a Lump Sum or Make Smaller, Frequent Transfers?
This is completely based on your requirements. However, it is advisable to make the transfer in a lump sum as frequent transactions may attract high exchange rate charges and transaction fees. For small transactions, using a multi currency forex card is advisable as it will save conversion costs.
What Should I Do if the Recipient Hasn’t Received the Funds on Time?
If the funds don’t arrive within the expected timeframe, contact your bank immediately. They can trace the transaction and assist in resolving any issues. Always keep track of the transaction and if you find any unusual delay or any other issues, report the same to your bank as well as the beneficiary bank.
International wire transfer is one of the best modes of international money transfer. It is a fast, safe, and cheap mode of transferring funds via electronic mode. Always check all the terms and conditions before initiating the transactions.
To know more about the loan application process, the best international bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. ;
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