Things to Keep in mind when remitting money abroad from India

Indians are globetrotting more than ever before for studies, business, medical treatment and leisure. Naturally, there is a surge in the need for outward foreign exchange remittances. It is of paramount importance that the three “S’s” - Save, Safely, and Swiftly - are taken care of when we remit funds overseas.
 
Although the government regulations are pretty clear cut about the legal methods to transfer, yet a lot can go wrong if the sender is not clear about the prerequisites for a money transfer. Also, for regular international payouts and transfers of large amounts of funds, getting the best currency exchange rate can make a difference of almost Rs. 60,000/- annually, which is quite substantial.

• Transfer money through only RBI authorised channels.

Use only banks, authorised money exchange agents and online money exchanger for your money transfer. Any other route can easily make your money disappear with no redressal. A bank account and proper documentation are essential for a money transfer.

• Two modes for overseas remittances

1. Foreign exchange demand draft
2. Wire transfer

The foreign currency demand draft is most popularly used for making payments for education, medical fees, visa fees or for relocation as it’s the safest mode of sending money, being in favour of the beneficiary. If lost or stolen it can be reissued by the bank. However, it takes a good 10-12 days for a demand draft to be issued, and therefore, is not a good option for immediate payments.

Wire transfer or swift transfer is the electronic method with which money from the Indian bank account is transferred to the specified overseas bank account of the beneficiary. This is the fastest way to send money, very handy in the case of emergencies. An online money exchanger, such as BookMyForex, for an outbound transfer within 24 hrs is your best bet as banks can take 2-3 days.
 

• Go for the best rate for a money transfer at two levels, currency exchange rate and processing charges.

To save time and money, look up an online money changer like BookMyForex, which is a forex marketplace for banks and money exchangers. Here you will find the best exchange rate as the order automatically goes to the forex dealer/bank offering the best exchange rate. The speed of money transfer comes with an inversely proportional cost. So, a wire transfer can cost as high as an additional Rs. 2000/-, and a demand draft much less. The amount can vary significantly from one currency exchanger to another. However, BookMyForex charges a flat rate of Rs. 250 for all forex remittances. Tax slabs based on amount are applicable to these transfers so know them to manage minimum taxation.

Author Bio :-

The author of this article is an expert in writing about foreign exchange. To get to know more about best online money changer, login to BookMyForex.com and experience the whole new way of buying & selling forex at best & live rates.