In this modern era, most of us are familiar with international money transfer and may come across several occasions that demand the money transfer to different geographical locations. Read further to be edified with more information about each and every step involved in the process of international money transfer.
Let’s start with the basic information for better understanding and smart remittances.
What is an International money transfer?
Basically, International remittance is the transfer of money from one country to another country. You may be wondering that there are millions of transactions happening each day around the world. Recent studies reveal that 60% of personal remittances are accounted for Education and family maintenance. These international money transfers are guided and monitored by various regulatory bodes of each country.
How does International remittance work in India?
Usually, the term “Wire transfer or Telegraphic Transfer” is used for international money transfers. In India, banks and Authorised money changers are the key parties involved in this process. The most secure way to transfer funds internationally is through Swift Transfer. Swift is the short form of the Society for Worldwide Interbank Financial Telecommunication network. Swift is the network of more than 11000 banks that works on messaging protocols and enables the efficient transfer of funds in a short span of time.
Let’s check – Who all are involved in the process of international money transfer?
Sender – The authorized dealer- Sender bank- Correspondent bank – Beneficiary bank – Receiver
Let’s check the step by step process for International Money Transfer from India
- How much amount can I send from India to abroad in a year?
Under the Liberalised Remittance Scheme (LRS) of RBI, all resident individuals, including minors, are allowed to freely remit up to USD 2, 50,000 per financial year (April – March).
- Can I send money abroad for any purpose?
Remittance from India following category outward remittance transactions are permissible.
- Private visits
- Gift or donation
- Going abroad for Immigration & employment
- Maintenance of close relatives abroad
- Travel for business, or attending a conference or specialized training or for the meeting.
- Expenses in connection with medical treatment abroad
- Studies abroad etc.
- How to select an authorized service provider for International Money Transfer?
It’s always recommended to avail service from an Authorised dealer/banker for money transfer. You might be confused that where you can find an authorized dealer? The Reserve Bank of India has permitted only AD I & AD II category agents to perform international remittances. All AD I agents comes under banks and AD II refers to those agents which have got the specific license from RBI for money changing. It will be better to choose an authorized money changer for your money transfer needs, to get better rates and personalized care for your remittance.
- What are the charges for international money transfers from India?
There are 3 types of charges incurring while transferring fund from India,
- Transaction charges & Exchange rates – It will depends on the banks and Authorised Dealer, but usually Authorised dealer will provide the competitive rates.
- Intermediary bank charges – There will be an intermediary bank charge ranging from 15 to 30 US dollars for all international remittances.
- Taxes GST & TCS – GST is applicable for every remittance transaction, on the currency conversion and remittance service charges. TCS is applicable for all those remittances which exceed 7 lakh INR in a financial year.
- What are the document required for remitting money abroad?
Each International remittance requires specific information about the remitter and beneficiary for the smooth transfer of funds.
Documents required for your personal remittance abroad
Customer KYC which includes any Govt. ID proof, PAN card, and Bank account details of the beneficiary. Specific documents related to the purpose of remittance like University offer letters in case of education remittance are also required.
Once the above-mentioned things are finalized, then you can transfer the desired INR amount from your bank to the authorized dealer’s account for performing the remittance. Your Authorised dealer will process your international remittance upon the receipt of funds. It normally takes 24 to 72 bank working hours to credit the fund to the beneficiary account. Sometimes it may vary depending on the number of intermediary banks in between.
Role of Unimoni in International Money Transfers
Unimoni India is an Authorized Dealer II and is a leader for Send Money Abroad Internationally in India with a good number of branch networks. Unimoni India is the first Company in India to get an Authorized Dealer II license and specialized in Sending Money Abroad for the majority of Indians. There is no place better than Unimoni Financial Services Ltd where you can experience the fastest outward transfers and best rates.