Promises Come Home with Remit2India

Send Money to India

People settle overseas in order to chase their dreams, earn success and enjoy a good lifestyle.

But the truth is, even if they’ve made a home away from home, India will never stop being their home.

After all, it’s a county where all their loved ones reside.

And, no matter how successful these NRIs get, they are always concerned about their families back home.

Which is why, the money they send home is never an obligation or out of a sense of duty alone. The money they send home is a promise of love, hope and security.

So while Remit2India is a remittance service that offers instant transfers, awesome exchange rates and great deals, it’s also about helping NRIs keep their promises to their loved ones. And hence is born our brand idea – “Promises Come Home”.

In a category that is very transactional, we want to touch hearts, invoke nostalgia and through our promise drive clicks and connections. Remit2India – “Promises Come Home” is what our brand ambassador Virat Kohli also talks about in the unique story of his NRI cousin’s promise.

Watch our brand film on YouTube to know more.

The Many Ways of Online Remittance to India

Sending money to India is a major concern for those living abroad. Moving your finances is never easy, since the currencies are different and there are a lot of nitty-gritties involved when it comes to money transfer. Clearly, there is no ‘one size fits all’ kind of solution for money transfer and you need to figure out what works best for you. While looking for the best money transfer services, it’s important to choose licensed transfer operators. If you are looking for the best possible ways of money transfer, here’s a quick lowdown on everything you need to know.

While looking for money transfer services for online remittance to India, you need to understand that not all companies operate worldwide. Before going any further, make sure that the company has a robust network and operates in the country you want to send money to. Your own bank could be a good starting point since most banks now offer international money transfer services to their customers. And the best part is that you are eligible for a whole lot of special privileges and discounts if you have been with that bank for a long time.

Of course, the rules and the fee structure would vary from one bank to another and transferring money through your bank may not always be the most economical option. You can, however, ask about exchange rates and the charges involved, and then make a choice. You also need to ask about the preferred currency for the transaction along with the time taken for transfers to India and other countries. Banks are undoubtedly one of the safest means of money transfer, though they may not always be the cheapest.

It’s quite obvious that the best way to send money to India may not be the most economical option but knowing your options takes away the stress from the money transfer ordeal. If you need to send money, but do not have an account yet, you may consider the services of transfer operators. Transfer operators offer their services online and are often your best bet in case of an emergency, or when there is a major time crunch. They usually have a strong network, operate worldwide and are always just a phone call away.

A transfer operator will enquire basic details such as identity proof, after which you would be given a reference number that enables the recipient to receive money. If you know of good transfer operators in your country, you may consider their services for quick money transfers. To be on the safer side, you may consider sending only small sums initially. Foreign exchange brokers are also known for offering decent exchange rates and the transfer fees are also pretty reasonable. Locked-in exchange rates often sweeten the deal and create a win-win situation for you as well as the foreign exchange broker.

While looking for swift transactions, make sure to pay equal attention to safety every step of the way to avoid complications or nasty surprises later.

Is the Rupee undervalued?

Votaries of a weak rupee point to the example of China which – to the rest of the world’s annoyance – has deliberately kept the yuan undervalued, forcing US legislators to consider officially declaring Beijing a ‘currency manipulator’. The comparison with India though is not valid. China is the manufacturing workshop of the world. Exports comprise around 32% of its GDP. Last year, it displaced Germany as the world’s largest exporter (with annual exports of $2 trillion). In contrast, exports account for only 18% of India’s GDP. A weak rupee does not help the other 82% of India’s economy. Quite the contrary: a current account deficit arising from an import bill of $460 billion (over 25% of Indian GDP) erodes the currency, pushes up inflation and lowers competitiveness.

A stronger rupee will not only trim India’s  trade and current account deficits and temper inflation, it will attract more FDI and FII. Today, foreign investors factor in a historical 4% annual depreciation of the rupee when computing their return on investment. Were the rupee to strengthen, dollar returns would rise concomitantly. Average central bank lending rates in the west and Japan are 0.25-3%. In India, the RBI’s repo rate, at which it lends funds to banks, has averaged 7.00-8.50% in the recent past. The gap mirrors precisely the historical annual depreciation of the rupee against the dollar. A stronger rupee would reduce that gap and bring India in line with advanced economies.

Wouldn’t Indian services – especially IT software – suffer if the rupee hardens? Service exports sell increasingly on quality, not price. Many (especially refined petroproducts and polished diamonds) have high import content. Besides, services include sectors such as foreign tourism that benefit from a stronger rupee. The biggest long-term beneficiaries of a stronger rupee would be India’s manufacturing productivity.

Cheaper imports would allow companies to ramp up foreign technology and build infrastructural and manufacturing assets. These, in turn, would lead to a spike in competitiveness, boosting exports based on quality, not marked-down prices. This would create a virtuous cycle of high productivity and quality allied with low inflation and deficits.

So what should be the value of a more muscular rupee? The Economist’s latest Big Mac Index shows that the rupee is undervalued vis-A -vis the US dollar by 61% while the yuan is undervalued by 41%. While The Economist’s Big Mac Index has, over the years, been a surprisingly accurate indicator of exchange rate trends, discounting The Economist’s index for India’s low-cost economy, the rupee is probably currently undervalued against the dollar by about 25%. A fair value of the rupee would, therefore, be just under 40 to a dollar. Our former finance minister, now prime minister, who 20 years ago said 25 to a dollar was fair value for the rupee in pre-reform India, might well agree.

Transferring money now made simple and safe

With an increasing number of Indians living abroad, either for work or having settled there and numerous freelancers working on international projects, the foreign exchange remittances into our country has boosted up in the past few years.

Indians living and working abroad sent home a whopping $55 bn this year as compared to $49.6 bn last year, according to World Bank’s Migration and Remittances Fact book 2011. India and China account for almost a quarter of the worldwide remittance flows of $440bn in 2010.

Overseas Indians have once again topped the world in sending money back home and with bank rates for rupee as well as foreign currency deposits on the rise; it’s not surprising that Indian companies are making renewed efforts to attract this money.

Indian companies are now taking strides in science and technology with which the horizons of the world have broadened. People prefer fast, easy and inexpensive ways of money transfer and expect the customer service to be excellent and professional. With the advent of digital as a medium, distant possibilities have been made achievable. For instance:- online money transfers are already playing a major role in cross border remittances.

Online money transfers have simplified life, eliminated the need to use cheques or even go to a bank. The best advantage of online money transfer is that the receiver is able to receive the payment or money within a short span. They are bank neutral and provide flexibility. Many money transfer service providers have developed innovative methods for payments. The Online money transfer is fast, convenient, accessible, transparent and safe mode of transferring money.

Today everything from communication to shopping to money transfer has become instant and that too by just a click of a button. No longer do you have to spend sleepless nights worrying over whether or not your payment reached the business or beneficiary (the receiver). Today it is simple- just log on, send the payment and get a receipt of the transactions.

 

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