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.

Love for the yellow metal


Last year the Indian government increased the import duty on Gold to 6% from around 1% anticipating a correction on the price thereby curtailing the demand

However, the gold demand went up 41% to 262 tonnes during the October-December quarter as households flocked to buy their favourite precious metal, ignoring the spurt in prices.

The rise in demand poses a fresh policy challenge for the government, which is battling to control gold imports as part of its efforts to keep current account deficit under check.

So far those efforts seems to have failed as India emerged as the fastest growing market and retained its position as the largest market, according to data released by the World Gold Council.

Positive sign for times to come: Indians in Olympics

The Indian contingent is steadily making inroads at the ongoing London Olympics. The first medal came in the form of Gagan Narang winning the Olympic Bronze Medal in the Men’s 10m Air Rifle Event couple of days back.

While tennis and hockey have disappointed, hopes are alive with boxers, shooters and shuttlers (Both Sania Nehwal and Parupalli Kashyap have advanced).

Back home a billion people wait to see their heroes perform well and win more medals. In the true spirit of the game it’s overwhelming to see the interest of people in India growing for sports beyond cricket, a positive sign for times to come.

Let’s hope India wins more medals and keeps its spirits high.

Remit2India adopts innovative ways to connect with its NRI audience

Participates in community associations & events to increase brand presence and engage its audience

Believing in the philosophy of engaging with its customers Remit2India, pioneer in online money transfers, has adopted a novel way of reaching out to the Indian disapora by partnering with Indian communities such as the ‘Bruhan Maharashtra Mandal of North America’ (BMM), ‘Telugu Association of North America’ (TANA) and participating in their annual events in US. Associating with these communities provided the opportunity to interact with NRIs who send money back home.

The BMM and TANA events were held in Chicago and California respectively where a sizable NRI population resides, thereby providing the perfect platform for services such as Remit2India to interact with potential customers. Both events attracted thousands of locals who turned out in large strengths at the venues that showcased their cultural and Indian roots.

Remit2India’s booth at these events gave the audience a flavour of the ease and convenience of its services that NRIs could benefit from when sending money to their home country. This on-ground activity was targeted at effectively connecting, interacting and engaging with the NRI community. Several product demos were conducted and promotion brand collaterals were given out to excite the customers. Commenting on this initiative, Avijit Nanda, President of TimesofMoney said, “We have traditionally followed extensive online marketing activities, but over the last couple of months, we have adopted a more focused approach that allows us to interact with our consumers directly and educate them on transferring money in a safe and secure manner online. Remit2India has always been innovative in interacting with its audience and sharing relevant product information. For these events, we aided our representatives with iPads that allowed us to provide a real time service demo along with a chance for customer to signup for FREE on the spot. The feedback has been very promising and we hope to continue reaching out to our audience in an innovative manner”.

Usage of Online Money Transfer for family maintenance

India has seen a huge leap in the form of displacement to other countries. This can be attributed to increased education, work opportunities and other factors for Indians. Though there is a clear displacement; there is a need for transfer of money, goods etc. to family, friends back to the country of origin. In the same process internet has played a huge role of simplification and making it hassle free.

Indian centric data on remittances sheds light on the importance of such services. According to the April 2010 study on remittances by Reserve Bank of India (RBI) 61% of remittances to India are used for family maintenance. The balance is used for investments in bank Fixed deposits, stocks and real estate, among others.

Family maintenance tops the list for usage of remittance. Hence it is important to understand that the medium to send money has to be instant, reliable and easy to use. Online banking is the quickest way to transfer money. The same service can be availed while on the move through different mobile devices. Mobile banking has been around for a while now and is gradually being accepted by a wide array of people.

Additional data from RBI shows the use of remittance in India. In contrast with the 61% use of remittances for family maintenance across the various states in India, the most commonly used food, health services and education, was lowest in Ahmedabad (35%) and highest in Ranchi (72%), Bengaluru (70%) and Bhubaneshwar (70%). Relatively higher proportions of remittances were banked in Delhi (31%), Ahmedabad (30%) and Kochi (25%). Higher proportions of remittances were invested in property and equities in Ahmedabad (12%), Mumbai (11%), Hyderabad (9%) and Bengaluru (8%).

The easy access to broadband has made online remittances easier. The online fund transfer and payment system empowers the customers to instantly send and receive money for family maintenance, payment of utility bills, sending gifts to loved ones and do much more with unmatched ease, speed, transparency and safety.

Private remittances from US to India totalled $3.2 billion in 2009

India received USD 3.2 billion in private remittances from the United States in 2009, almost the same as China, a new Congressional report has said. In 2009, 10 countries accounted for over USD 32 billion, or about 40 per cent, of net private remittances and related flows from the United States, said the Congressional Budget Office in its report, “Migrant’s Remittances and Related Economic Flows.”

People in Mexico received about USD 20 billion, the largest single share by far, about 61 per cent of the total receipts for the 10 countries. “People in India and China received over USD 3 billion each and together accounted for about 20 per cent of the total for those 10 countries,” said the 28-page report. “Between 2000 and 2009, net private remittances and related flows to those 10 countries grew by an average of 7 per cent per year (not adjusted for inflation),” it said.

Transfers to people in China rose from USD 1.5 billion in 2000 to USD 3.2 billion in 2009, an average increase of 9 per cent per year. Such transfers to Canada were erratic over the period; they rose from USD 0.5 billion in 2000 to USD 2.2 billion in 2009, but net outflows from Canada occurred in some of the intervening years.

Although a substantial share of net private remittances and related flows went to 10 countries — Mexico, China, India, Canada, Korea, Brazil, Netherlands, Luxembourg, Taiwan and Japan — other countries experienced faster growth in such transfers over the past decade, the report said.

The Bureau of Economic Analysis (BEA) estimates that migrants’ remittances totaled about USD 48 billion in 2009 — nearly 70 per cent more than official development assistance provided by the US government. Nearly USD 38 billion of that amount was personal transfers by foreign-born residents in the United States to households abroad. The rest, about USD 11 billion, reflected the compensation of employees who were in the United States for less than a year. Some of that compensation, however, was spent in the United States.

Source:- IAMTN

Options for Money Transfers

Growing international trade and advancement in technology has made international trading and transactions easy yet speedy. It has also facilitated the need to transfer money. Whether you import or export the commodities, send money to your family settled abroad or buy a property in a foreign country a money transfer comes very handy. Due to this ever growing need of international money transfer services, there have been many mediums introduced which offer quick and cost effective services. Some of them are:-

1) Wire transfer: Wire transfer services are basically an electronic money transfer service with which you can transfer money from your bank account to another bank account. All that is required is the details of recipient bank account and the wire transfer code to transfer money. It can take up to 2 days to perform the complete transfer. Though the foreign currency exchange rate may be high, bank-to-bank wire transfer is considered the safest international money transfer method.

2) Online Money Transfer: Online money transfer has been very popular for performing small amount of money transfer. It is quick and a convenient mode to transfer the amount to a recipient at any global location. All you need to have is an email account and a valid registration with the online portal you choose for your money transfer needs. There are many providers for online money transfer services. The charges for transfer depend a lot on the amount to be transferred. If we talk about the safety measures, proper identity verification is done by the online money transfer agencies to avoid any fraud.

3) Bank Draft: Bank Draft is a medium to transfer money to a foreign company. Mostly, large transactions by companies and banks are done through bank drafts. It is secure and requires the sender’s declaration and verification to perform the transfer. It’s an effective way to perform international money transfer, but it costs more in comparison to other services and hence not a popular mode of transfer for individual money transfer needs.

4) Money transfer Agencies: There are various companies providing money transfer services as a primary service. Whenever one needs to transfer certain amount to an individual in a foreign country, he/she has to visit the agency’s local office, deposit money and take a transfer code. The recipient can use the same transfer code to withdraw the money. It is quick and charges depend upon the transaction amount. There are substantial charges on the foreign exchange rates. It is advisable to use this service when the money transfer is required occasionally.

Are you looking at Transferring money? What should you look for?

India recorded US$ 55 billion as remittances received and stood as the No. 1 country in 2010, as per a recent World Bank Report.

This can be attributed to the increasing emigrants’ population from India that has seen a steady increase. The rise in remittances has encouraged a lot of companies specially banks to offer remittance services. However, with intense competition there are various factors you as a customer need to be aware of while transacting money.

Undoubtedly rates are important to gain the maximum value, however factors such as Trust, Convenience, Safety, transaction charges and time taken are also important. One should also keep in mind charges such as commissions, transfer fees, service fees and others.

One of the fastest growing money transfer option that is catching on is ‘Online Money Transfer’. It offers the convenience of time along with lower transaction fees. And their rates are most competitive.

Factors that will influence your choice of selecting money transfer mode.

  • Trust
  • Convenience
  • Exchange rate
  • Customer Support
  • Security
  • Speed / Times Taken

The above elements are hygiene factors these days while you consider a money transfer mode.

You should also look out for options that save you money. While transferring money, do not opt for faster modes if the money transfer is not critical or urgent as it is the most expensive. Also it disallows large sums of transfer in one single transaction.

While using your agent / branch be aware of the hidden charges and exchange rate offered. Seek transparency of charges and time taken.

Online Money Transfer services such as Remit2India are a one-stop solution for all your money transfer needs. You can send money from 23 countries and gain benefit of most competitive exchange rates, zero transaction fees, 24×7 customer service and above all peace of mind. So be assured that all your money transfer worries are put to rest.

Visit us at www.remit2india.com

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.


Give Back to India with Remit2India

Like the title suggests, you too could make a difference to India. We wont even make a big deal out of it. Literally!!

We have a lot of options for you to choose from and hopefully one of those will grab your attention. With options ranging from education to religion, we empower you to send money to a charity of your choice. With no charges we ensure that all the money you send goes as is to the charity you are sending money in India to.

Click the banner below and know how to send money to India and the charity you want to help.

Remit2India - Online Donations

And so you too can make India a better place to live in.

(PS: We have launched another program altogether known as “Grow India“. Read about that here.)

%d bloggers like this: