Sending money back to India is an important obligation that many Indian’s take on. They take the responsibility for their elderly parents and siblings, transfer money to pay for education as well as send money to build a home that they will use when they retire. One of the quickest ways to make a money remittance to India is wire transfer.
There are two ways that wire transfers can be made:
- Wire money direct between two bank accounts, the senders and the recipients
- Use a wire transfer company and send the money from office to office
Either of these options takes only a matter of seconds as everything is completed electronically and cash does not actually travel from one place to another. As quick as it may be, sending money from branch to branch of a wire transfer company is expensive. Bank to bank transfers are more secure and less costly.
When wiring money between banks, the sender must have a bank account from which to send the money. Wiring money is an every-day event for most banks, so there is no difficulty is arranging the transfer. The sender must have the recipient’s full information, including the name on the account, the name of the bank and the account number. It makes it easier if the sender has the SWIFT number of the recipient’s bank.
When making a money remittance to India, if the amount is over a specified limit, this will prompt a reporting requirement. The correspondent will have to complete some documentation, which indicates why the money is being sent, what are the intended use of the funds as well as the identity of both the sender and receiver. This information is used in an attempt to defeat money laundering. As well as filling in these details, it is the sender’s responsibility to ensure that both banks can arrange for an international money transfer.
Once all the documentation has been completed, the sender hands the bank the payment, usually debited direct from the senders account. The amount includes a fee that the bank charges for the service. Once the money has been paid, the transfer is can be completed in short-order, usually less than 30 minutes. As the money is going directly into the recipient’s ban account, he has nothing to do except withdraw the money upon its receipt in his account.
If the recipient does not have a bank account, then the transfer must be made between the branch offices of wire transfer companies. The process is more complicated because the transfer company will not know you so establishing your identity has to be done. The fees are usually higher than the bank but the money is available just as quickly; however, the recipient must go to the local branch office to collect the remittance in cash.