The advancement in communication technologies and ease of travel globally have made people global citizens. While working in a different country, an individual often needs to transfer money to his/her family back home.
For transferring money, it’s important to get a good exchange rate and an efficient banking service.
“Starting with a visit to the bank and a laundry list of tasks that the bank may give you – queues, limited time available, and the never-ending paperwork and signatures – remittance may appear to be a daunting task,” said Mayank Goyal, Founder & CEO of moneyHOP.
“What you need is a seamless digital and paperless remittance provider that understands these pain-points,” he added.
Such providers exist and you can find them by keeping the following points in mind:
Not everyone gives you a good exchange rate. These rates keep fluctuating and hidden fees will definitely affect the final transfer amount, so keep an eye on those rates offered by the provider you choose.
If you frequently transfer small sums of money overseas, you should use a service that charges a fee based on the amount transferred (the higher the amount, the higher the fee). If you are transferring a large sum only once, you should use a company that charges a flat fee regardless of the amount being transferred.
Safe and Secure Medium
Whether you use a bank or an online remittance platform, make sure you double-check it is a RBI regulated entity. That way, you can be certain that your hard-earned money has reached your family in a safe and secure manner.
In case of any issue surfaces while transferring money, it’s also important to have a good mechanism in place to remove the glitch and complete the transaction.
“When transferring money globally, the safety and integrity of the transaction are a big concern. Hence, it’s advisable to opt for reputed and well-recognised banks or service providers with good reviews. One thing that you should pay special attention to is the grievance redressal policy of the platform. As money has to be sent to a foreign recipient, there could be incidences of errors/frauds. That’s when a quick redressal feature becomes crucial,” said Pranjal Kamra, CEO of Finology.
“As per the RBI, a person can remit a maximum of $2,50,000 every year. Besides, as it’s an international transaction, exchange rates and transaction fees will also creep in. Tax regulations will also be applicable. Take these factors into consideration while transferring the money,” Kamra added.