Money remittance

Money transfer from abroad to India

From last few days, rupee is hovering around 60 per dollar and it is good news for non-resident Indians (NRIs) who send money to their families in India. India is the largest recipient country in the world. A few innovative ways have been introduced recently for money transfer in these days. Here are some of the innovative ways of remitting money to India.

Remittance card:

It is a rupee-denominated prepaid card. Your relative in the US, the UK, Canada, the UAE or any other country can load cash in the prepaid card at any UAE exchange centre. The card is only issued to the beneficiary or receiver in India. All you have to do is apply for it online on the bank website. After ensuring compliance with know-your-client norms, the bank would activate the card. You will also get a personal identification number. Once the sender remits the money from the overseas UAE Exchange branch, the funds will be automatically loaded into the prepaid card, which can be used at any automated-teller machine (ATM) or point of sale (PoS) terminal like a debit card.

The cash withdrawal limit is Rs.50,000 per day and PoS transaction limit Rs.15,000 per day varying from bank to bank. Currently, ICICI Bank Money Transfer Money2India and PNB Xpress Money Remit card—launched by Xpress Money and Punjab National Bank—are available.

There is no issuance fee for the ICICI Bank card. But there is a one-time processing fee of Rs.300. The charges vary from card to card.

Mobile-based remittance:

Banks and money transfer operators have started providing mobile-based remittance via instant money transfer. For instance, Xpress Money and Axis Bank Ltd together have launched a platform where you can receive money using a code sent to the phone. For this the sender has to visit an Xpress Money outlet. While sending the money, she has to mention the beneficiary’s mobile number. The receiver will then get a code on her mobile. She can walk into any Axis Bank ATM and key in the code to withdraw the money. For this, the sender and the receiver need not be an Axis Bank account holder.

Only the transaction fee is applicable here and it varies from country to country. 

Mobile Apps:

For smart phone user, there are aslo more action in the remittance space soon. Xoom Corp., a digital money transfer provider and Vesta Corp. have introduced an app for money transfer. You can download the app only on an android or iPhone. Once you download the app, you will have to create a login ID. Through this you can remit money after which the receiver will get a transaction number. The receiver has to quote the transaction number to withdraw the money. Some banks offer apps to track the money transfer process.

The app is free. However, transaction fee is applicable and it varies from country to country.

Quick remit:

The current environment has pushed traditional remittance service providers to upgrade their existing platforms. Money transfer companies are seen focusing on instant cash. In quick remit, transactions are done instantly on a one-on-one basis. Even before you leave the counter, the sender and the receiver will get an SMS on their mobile phones confirming the credit of the remittance.

Only transaction fee is applicable, which varies from country to country. If you plan to send money through any of these modes, remember to check transfer charges, exchange rates, service charges and the number of days required to send the amount. Also, ensure to initiate transaction with an authorized remittance provider.

For more detail about any other query related investment, you can contact me through my email.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com                               (Sources: Mint Money Daily Newspaper)