Why Are Important Documents Required For Money Transfers?

Importance of Documents for Online Money Remittance

Transferring money to India requires you to present few important documents. But some financial institutions can ask you for other supporting documents in addition to the regular documents. A list of documents required by a money transfer agency can include photocopy of a driving license, proof of residency, passport, or a proof of income like a bank statement or pay slips.

A lot of times, we have heard complains from our customers that there are a lot of questions asked, many documents to be shown and multiple verification calls. Thing to understand here is that all of this is for a reason. Fraudulent transactions are at a rise and we need to ensure that our customers’ money is safe. This is the reason we have stringent compliance checks and strict verification processes, that may demand a lot of documents.

If you wonder why these documents are so important, have a look at the two main reasons mentioned below:

  • Verification of Identity

Financial institutions require additional documents in order to cross verify the identity and income structure of the money transfer applicant. Cross verification is most commonly conducted by financial institution mainly banks and money transfer agencies, as without the confirmation of a sender, the transaction cannot be completed. Also, to prevent delays in money transfers, one should provide genuine documents for verification.

  • To Detect and Prevent Frauds

To prevent illegitimate use of funds, you need to provide authentic and original documents to the transfer agency or a bank. These documents are collected to avoid scams like money laundering, currency counterfeiting and black money transactions. For example, one can transfer an unauthorized amount of taxable income from one bank to another, regardless of any country, without actually paying the taxes. To avoid and eliminate this, documents presented by you aids the banks to trace illegal activities or block an ongoing fraudulent transaction.

Therefore, it’s necessary for banks and other remittance companies across the world to ask for a set of documents while signing up for their services. It’s no different than your bank asking for KYC (Know Your Customer) documents for opening up a checking, savings or a current account. For further information on the required documents and our services, contact our customer care executive by sending an e-mail to info@remit2india.com or visit www.remit2india.com

Which exchange rate is better – Guaranteed or Indicative?

Which Exchange Rate is Better For Money Transfer

Foreign exchange rate is the value of one currency for the purpose of conversion to another. If you compare INR and USD, the value of INR when compared to USD becomes the exchange rate. The exchange rate can be based on multiple factors such as market fluctuation. There are two types of exchange rates, locked-In exchange rate, also known as fixed exchange Rate and indicative exchange rate, also known as floating exchange rate.

What are Locked-In Rates?

In Locked-In exchange rate, the value of a particular country’s currency is fixed to the value of another single currency. This exchange rate is set by the government or the central bank to maintain the official currency value within limited bandwidth and to also keep the interest rates lower. This way the exchange rates are appropriate, and the government can adjust it whenever required.

Features of Locked-In Rates:

  • Stability in exchange rate
  • Lessens transaction charges
  • Remains same, as it is set by the government
  • Secured transactions

When you make an international money transaction with locked-in rates, the exchange rate is fixed when it is applied at the time of conversion of overseas currencies. It means that with this, the sender will know the exact amount of money to be received by the recipient. It is also a useful option if you have a fixed commitment overseas like loan, EMI, mortgage etc.

What are Indicative Rates?

Indicative exchange rates fluctuate according to the market forces of supply and demand. The change of market conditions also causes the exchange rates to fluctuate invariably. Neither the central bank nor the government interferes in determining the price of the currency.

Features of Indicative Rates:

  • Keeps fluctuating
  • The change in supply and demand adjusts automatically
  • Highly flexible
  • May lead to inflation, which has to be controlled by the government

As indicative rates are floating exchange rates, they are not locked at the time of a transaction. Since the rates fluctuates, the amount received by the recipient during the transaction may vary.

It is important to be aware of these two types of rates while making an international transaction. Apart from this, you can also consider various other factors when remitting online.

Which rate do I choose?

Remit2India offers both guaranteed and indicative rate when you send money to India. Sending money through guaranteed rate is always safe, but if you are willing to take a little risk and can gauge the market condition, you can choose indicative rate as you might get higher returns.

How to Transfer Money to India Cost-effectively?

If you thought banks are the only way to send money to India or any other country, think again. In the world of international remittance, choice can make a huge difference, helping you save time as well as money. You just need to explore options and look for the right remittance method that will reduce your costs and ensure a hassle-free, cost-effective remittance experience.

When choosing a remittance service provider, here are a few points you need to consider:

Fees

Currency exchange fee is one of the top factors to consider when finalizing a service provider. Banks usually charge a hefty fee with unwanted charges. This adds to the cost of your currency exchange. So, it is recommended to shop around in order to get good rates.

FX Rates

Exchange rates offered by banks are high as compared to an online remittance agency. Online agencies keep updating exchange rates to offer the best option to their clients. Banks know that they have a steady stream of customers who are looking for an easy and safe method to transfer money to India. Offering competitive exchange rates isn’t their priority. It is recommended to find a currency comparison website and compare exchange rates in real time before choosing any service provider. This will help you save time as well as money.

Customer Service

Quality customer service is equally important when sending money from one country to another. Specialized remittance service providers offer personalized services. They understand the needs of customers and provide them the right remittance solutions. Reputed agencies have 24/7 customer support. Their customer care representatives can be reached easily, whenever you have any complaint or query. Their service level is high and you can rely on them for best money transfer solutions.

International money transfers can be very expensive if you don’t compare rates and fees before choosing a service provider. The best way of finding a good remittance company is to ask for recommendations from your peers. If they also send money back home on a regular basis and are satisfied with the services of the remittance agency, you can also opt for the same service provider. You can also find a good money transfer service provider through online research. Narrow down your search to 3-4 agencies and compare their rates and services. Only a reputed agency will offer you best services at competitive rates.

Remit2India: Special Festive Offers

This festive season, Remit2India will add plenty of cheer to your lives. Need to send money to India? Well, Remit2India is surely your way best bet. Send money with Remit2India this month and get amazing offers each and every time.

Here is our list of offers that are live currently:

Sending Country: United States of America (USA)
Sending Currency: USD
Offer 1: POWER 30

Remit2India Power 30 Offer

Festive Offer for United States to India

Send money to India from United States via Remit2India and get delightful offers on your first three transactions with Remit2India. On each occasion, get assured dollar thirty added to your transaction.

Offer 2: Special Login Offer

Sending Country: United Kingdom (UK)
Sending Currency: GBP
Offer: 50 % extra in INR value

Remit2India - Special Offer for Indians in UK

Special Offer for Indians in UK

Send money with Remit2India nad get upto INR 100,000 added to your transaction. Everytime you send money in GBP you get 50% of the sending amount (in INR) added to the transaction. For instance, send GBP 5,000 and get INR 2,500 additional added to the final transaction amount.

Sending Countries: Europe (Eur)
Sending Currencies: EURO
Offer: 50 % extra in INR value

Sending Country: Australia (AUS)
Sending Currency: Australian Dollar
Offer: FLAT 40 paisa extra per AUD

Remit2India - Special Festive Offer for Indians in Australia

Festive Season Offer

Send any amount from Australia to India and get assured 40 paisa per AUD added to your transaction.

There is something in it for everybody.

For more information you can visit our website – http://www.remit2india.com. Alternatively, you can email us at info@remit2india.com

Remit2India launch 24/7 credit-card remittance services for NRIs in UAE

UAE-based non-resident Indians (NRIs) can now use their locally issued credit card to transfer money to any bank account in India. The new service launched by Remit2India, a global leader in online cross-border remittances, will allow its user to send money back home using their UAE-cards instantly and at any time of the day.

According to World Bank figures, with inward remittances touching US$ 70 billion in 2013 alone, India is the largest recipient of international remittances and the number one source country for outflows to India is the UAE.

“More than 20% of the total remittance to India last year was from the UAE. Non Resident Indians (NRIs) in this country are always on the lookout for speedy, secure and convenient means to remit money to their loved ones back home and we are delighted to launch this new service which will enable them to transfer money to India, anytime and from anywhere,” said Bhairav Trivedi, Chief Executive Officer, Network International.

Since Remit2India services are 100% online, it saves the customer precious time by eliminating the hassles of visiting an agent’s office and standing in long queues. With no paperwork involved, the online remittance service can be accessed 24/7, any time.

If you are among the not-so-internet-savvy, in case you are stuck or have any problem using the service, do not worry. The service has a 24/7 customer support as well and a real-time transaction alerts to ensure you are informed at all point of time.

“Our aim is to provide the customers with a simple, cost-effective and transparent method of sending money home,” added Avijit Nanda, CEO, TimesofMoney. Remit2India is a service offering from TimesofMoney, majority owned by Network International, a leading payment solutions provider in the Middle East.

To use the service you’ll have to register on www.remit2india.com and provide the recipient bank account details. A remittance transfer can be made through entering the UAE card details or bank details and the amount to be transferred. Payment processing is powered by Network International, ensuring the security of the transaction and confidentiality of the customer’s details. Remit2India currently offers NRIs across 23 countries and has a delivery network in India spanning 90 banks.

NRIs can now enjoy tax benefits for salary credited to their NRE/NRO accounts

NRI-Taxes

Often NRIs working abroad face taxation worries for their overseas salary income credited into their NRE/NRO accounts. This is because a non-resident can be subjected to tax in India on that portion of the income which is received in India.

However, The Income Tax Appellate Tribunal (ITAT) which adjudicates tax matters, in a recent decision, has held that merely because the salary was credited by an international company to the employee’s NRE bank account in India, it will not trigger a tax incidence in India. The ITAT sought to distinguish between ‘income’ received in India and an ‘amount’ received in India.

Another young Indian making a mark in US

barack-obama-praises-indian-american-student-for-her-science-projectIt comes as no surprise, yet another Indian-American student receiving praises for her work, this time around from none other than the US President Barack Obama himself.

Meghana Rao an Indian origin student from Portland, Oregon, exhibited her project based on ‘biochar’ (charcoal) to the US President at the fair in which around 30 student teams from across US participated.

American Natural History Museum Young Naturalist Award winner, Meghana, is a Jesuit High School student who-in addition to researching the ability of ‘biochar’ also directs a student-run non-profit organization, Portland Junior Scientists (PJS).

Her hard work helped her earn a 2013 Young Naturalist Award from the American Natural History Museum, and brought PJS a $5,000 grant from the Pepsi Refresh Project and an $11,500 grant from the Case Foundation’s Finding Fearless program.

Another Indian, making her nation and fellow Indians proud.

Pravasi Bharatiya Divas (PBD) Convention- Kochi 7th January 2013

The eleventh edition of the Pravasi Bharatiya Divas (PBD) Convention, the flagship event of The Ministry of Overseas Indian Affairs, will be held in Kochi, Kerala, on 7-9 January, 2013. The Government of Kerala will be the State partner of this event.

The day commemorates the return of Mahatma Gandhi from South Africa.The Pravasi Bharatiya Divas is celebrated every year to cherish the contributions of the Overseas Indian Community to the development of India.

The PBD Convention provides a unique platform for overseas Indians to interact among themselves and with the Government of India and the Governments of various Indian States. It is a forum where the Government of India showcases investment opportunities in India and its potential in various sectors.

In the forthcoming PBD, numerous enthusiastic participation is expected from heterogeneous and diverse overseas Indian community spread across the globe. The effort is to have a meaningful and interactive event that would address the issues and concerns of the overseas Indian community effectively.

The great Indian Diaspora embodies the indomitable spirit of enterprise, harmony and patriotism for the land of their origin. The enthusiastic participation in the Pravasi Bharatiya Divas over the years since 2003, and the eagerness to connect with the homeland, express the emotional bonds that all Non Resident Indians so fondly share with their motherland. The commercial capital of Kerala awaits to enchant everyone with its natural beauty of backwaters, and mesmerizing monuments of God’s Own Country.

Impact on gifts received by Indian Americans

tax

In the US, tax on gifts is levied in the hands of the donor or person making the gift and not the receiver. Moreover, this only applies where the person making the gift is a US taxpayer, that is, a US resident, green card holder or citizen. Where a gift is made by a person resident in India to a US person, no gift tax is payable as the donor is not a US taxpayer. However, the person receiving the gift, being a US taxpayer, must fill up form 3520 – ‘Annual return to report transactions with foreign trusts and receipt of certain foreign gifts’
Expert’s advice “Even if there is no tax liability at the time of receiving the gift, US residents, citizens and Green Card holders who receive gifts over $100,000 from someone in India must file Form 3520 along with their tax return. This applies to financial assets such as cash, investments and also physical assets like property.”

In case the gift is in the form of property, the recipient must disclose the fair market value of the property on the date of the gift on Form 3520.

40% rise in Remittances expected in the state of Kerala

With India expected to hold on to it No. 1 remittance receiving country tag with expected $70 billion in remittance flows according to a recent World Bank report. The southern state of Kerala is expected to rise by 40% to Rs 60,000 crore in 2012, as against Rs 50,000 crore in 2011.

“This shows that slowdown and other crises are no limits when it comes to sending money back home,” S Irudaya Rajan, chair professor, research unit on international migration, Ministry of Overseas Indian Affairs said.

Recent policy measures by the Reserve Bank of India have also given a fillip to the remittance business. After the interest rates on NSE and NRO accounts were deregulated last year, banks looked to shore up low cost deposits through this route, by increasing rates which were controlled. NRE saving deposits mirror domestic saving rates at 4% while interest on NRE term deposits range from 8.5% to 9%.

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