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.

Remit2India NRI Family Day celebrated in New Delhi with great enthusiasm

 

 

 

 

 

 

 

 

 

 

 

 

Known for its historical and political importance as also for its famous architectural monuments like the Qutub Minar, Humayun’s tomb and the Red Fort, India’s capital witnessed a spectacular evening this Sunday, filled with a wide variety of performances, activities and contests at the NRI Family Day, organized by Remit2India.

Remit2India, that serves over a million NRIs worldwide with its online money transfer service, extended its consumer connect initiative to New Delhi and recently gave 500 of its NRI families and friends a reason to celebrate. The Lalit, New Delhi played host to Remit2India NRI Family Day, an evening that witnessed a mélange of entertainment for each and every one present. From a breathtaking performance by India’s fastest guitarist Apernit Singh, to dance performances by talented international artists, the event had it all. The evening also witnessed activities like no other, and included free health check-ups, face painting, tarot card reading & photo sessions, all of which saw excellent participation from the families.

 

Speaking on this occasion, Kunnal Sharma, Business Head – Global Remittances, TimesofMoney said, “No countrywide celebration is complete without Delhi on its map. And true to its reputation, the city welcomed the NRI Family Day with great enthusiasm. We are delighted with the overwhelming response we received from over 500 NRI families for the Remit2India NRI Family Day. The event has provided us an opportunity to connect with our valuable customers, and thank them and their families for their continued support.”

Key partners for the event included Harit Dharaa, Jet Airways, Leonia Resorts, LIC Housing Finance Ltd., Moolchand Hospital and Volvo.

Banks flush with NRI deposits

With the rupee trading above Rs 50 against the dollar, remittances from non-resident Indians are surging. In October, the local currency was trading at around Rs 45. Banks like Kotak Mahindra Bank is witnessing a 40-50% y-o-y growth in remittances, while other smaller banks are seeing their NRI deposits growing by 10-30%. The spike in remittances is also partially attributed to the financial crisis in Europe and political unrest in West Asia.

With the rupee breaching the 50-mark, deposits in dollar accounts such as foreign currency non resident account bank schemes (FCNR) (B) have earned an annualized 40% return. To make it sweeter, such accounts can now be held in freely convertible currency. Currently, currencies designated by the Reserve Bank include dollar, pound sterling, yen, euro, Canadian dollar and Australian dollar.

Kerala-based banks have been the biggest beneficiaries of the remittance windfall. Nearly 21% of the deposit base of Federal Bank is accounted by NRIs. For the second quarter, the bank has seen a 30% growth in NRE (non resident external rupee account) and FCNR accounts. “Nearly 7% of pan Indian remittances come through our bank and the rupee weakening has given a further boost,” says A Surendran, head, international banking, Federal Bank. The bank is expecting a 30% growth in its non resident business this fiscal.
Similarly, the non-resident deposit business of South Indian Bank has grown by 20% for the half year ended September 2011. To top that, many Indian banks had offered a 9% deposit schemes at the beginning of the year and with NRO (non resident ordinary rupee account) rates pegged to domestic rates, banks saw a heavy flows into such accounts. For instance, Tamil Nadu’s Karur Vysya Bank has seen a 12% growth in its NRO deposits quarter-on-quarter this fiscal. “NRIs are resorting to arbitrage on account of a weaker rupee and better interest rates on deposits in India when compared to banks abroad,” says N Venkataraman, managing director and chief executive officer, Karur Vysya Bank.

Importantly, the role of NRIs in the Indian banking system has widened. “They are looking at multiple benefits and not just windfalls from exchange rate fluctuations. This includes opportunities for investment in real estate and mutual funds,” says Praveen Kutty, head, retail and SME banking, Development Credit Bank. DCB has seen a growth of 20% in non-resident deposits q-o-q this fiscal and nearly 10% of the retail deposit base of the bank is accounted by Indians abroad. To cash in on such investment opportunities, South Indian Bank has launched portfolio management services for NRIs in association with Geojit BNP Paribas.

“Unlike the previous generation, many of the present generation living abroad are looking to return to India at some point. They are making investments in apartments and so nearly 50-60% of their savings gets channelized to India,” says N Kamakodi, chairman and managing director, City Union Bank.

It’s also profitable to have NRI customers as the average balance maintained by such customers in savings bank and term deposits is much higher than their domestic counterparts. While average balances in CASA of Indian account holders are Rs 35,000, NRIs tend to park over Rs 1 lakh in NRO and NRE savings accounts.

 
Source:The Times of India

Remittance and reform

Healthy remittance income that has undoubtedly averted in many ways a devastating financial crisis in the country is also providing a toxic cushion for politicians to brush aside much-needed policy reforms for boosting Nepal’s shrinking productivity and competitiveness, a World Bank study released on Tuesday has argued. This may sound odd, but there are many convincing points here. It is undeniable that remittance is the major contributor to the healthy foreign currency reserves that Nepal has long enjoyed and that has enabled it to withstand the immediate impact of a worsening balance of payments deficit.

Remittance-fed reserves have also helped the government settle its international payments obligations, such as extending import financing and repaying external debt, without much headache or effort. More than that, remittances, which currently contribute roughly one-fourth of the GDP, have greatly helped to keep consumption afloat even when the economic growth rate was flat and unemployment was rising.

It is indisputable reality that had there been no remittance inflow at the level the country now enjoys, Nepal’s foreign currency situation would have plunged into serious trouble a long time back. Under that scenario, it would have compelled the government to take urgent reform measures aimed at curbing foreign currency outflow, such as checking imports and boosting exports, through the removal of barriers that crop up in the development of the manufacturing sector. The huge reserves buildup via remittances has given ground for the government to overlook very essential reforms for tackling problems such as rigid labor laws, labor militancy and dwindling investments that have added to manufacturing sector woes.

In addition, the World Bank study has also brought out a mind-blowing ‘vicious policy circle’ of healthy remittance helping the state distance itself from economic reforms which in turn is inducing low growth, low job creation, and ultimately fueling more migration. The study also warns that the toxic combination of high remittance inflow and lack of policy reform has exposed Nepal to the risk of Dutch Disease, an unnatural growth of a certain sector that appreciates the currency and hurts manufacturing and exports. The study has rightly reckoned that remittance-fueled demand and subsequent price rises are ultimately raising the cost of exportable items, thereby leading to loss of competitiveness.

We believe that the gentle but powerful recommendation of the study that the government make migration an option rather than a necessity for survival, needs to be well taken. We have heard many good things about what remittance has done but it’s high time we made an in-depth assessment of the possible negative social and economic consequences that it might bring in the long run.

Source: MyRepublica

Migration & Remittance

Migration has always been a global phenomenon since ages. People migrate from villages to towns, from towns to cities, from small cities to bigger cities and from one country to another – all in search of better opportunities & a better life. But what is critical to note is that most migrants continue to be connected to their roots – emotionally or financially.

And this presents an opportunity for the ever increasing money transfer industry. An estimated $500 billion moves across countries as pure private remittances. Which means, a value equal to the entire annual GDP of a country like Egypt or Thailand, is generated purely by these cross-border remittances.

And leading the world in inward money transfer, India receives an annual amount of over $55 billion (World Bank Estimate 2010) in personal remittances. The Indian Diaspora is spread all over the world and is considered one of the most affluent ethnic communities in countries like the US, U.K & Australia. Over 22 million Indians are settled abroad and from the US alone, India receives an approximate $20 billion in remittances. This money could be utilised for family maintenance, savings in NRE accounts, charity or for buying property in the booming real-estate market in India.

It’s not surprising given the facts above that, India Money Transfers is a very lucrative segment for banks and other service providers. However, Indian customers have also been price conscious yet, at the same time, quite demanding in terms of the service quality.

This has resulted in the customer witnessing a huge change in the service offered to him over the years. From using offline agents to archaic foreign currency cheques to progressively priced wire-transfers, customers have now migrated to more convenient & cost effective online money transfers. Online money transfers to India is now the fastest growing choice to send money. Apart from some banks offering the service, neutral service providers like Remit2India from the Times Group, is the preferred choice for most NRIs.

Remit2India’s Penalty Shoot Out

Is the Football World Cup on your mind? It’s on ours too! Since we have that in common, we thought we would share the frenzy with you.

Welcome to Remit2India’s Penalty Shoot Out! We are taking advantage of the fact that you love football as much as we do and hope to make your experience as close to exciting as possible. Log on to Remit2India, register (if you have not already done so) and participate in the daily contest at http://bit.ly/R2IFootball.

Participation is simple. Predict the winners for the questions on the site and you could be a winner. 2 daily winners stand a chance to win Original Football World Cup Jerseys. 2 REALLY lucky winners stand a chance to win Original World Cup Jabulani Footballs every week.

Need we tell you more?

Kick-start your chance to win some cool original football goodies!

India sees more dollars coming in with a weaker Rupee!

The weaker Rupee has become the cause for a surge in inward dollar remittance sent by NRIs from the US. Yesterday the US $ reached an exchange rate of Rs. 46.59* against the rupee and this has enabled a lot of NRIs to send money back home in India.

(*Source: remit2india.com indicative rate as on 9.30am IST on Thursday, 20th May, 2010)

Remittance inflow from the US has increased by a whopping 37% in the first 20 days of this month when compared to the previous month. This reinstates the fact that the weaker rupee has indeed caught the fancy of NRIs in the US.

“The recent surge of the dollar against the rupee has been extreme. We have seen a spike in our numbers, both on transactions and volume especially in the past few days. Also a noticeable factor that has come forward over the past few days is that the average remittance amount by individuals has been upwards of US$ 10,000, which is substantially more than our monthly average” said Avijit Nanda, President, TimesofMoney. He also added, “We feel that this trend will only improve over the next few days and we expect more inflows to come into India.”

Very comfortable with Remit2India

Remit2India – Remit2India services- Remit2India Features

I will be frank and say my first experience with Remit2India was not perfect. But when I carefully reviewed and spoke to the sales person, I understood the issue was a misunderstanding and it was sorted out. Since then I’m very comfortable with Remit2India’s money transfer to my NRE account in ICICI.

A Satish, California

Remit2India – Once again thanks

Remit2India – Remit2India services- Remit2India Features
Dear Sir, Thanks for you immediate help. The money is transferred to my Indian account. Once again thanks for replying.
Regards

Remit2india – New services are helpful to us NRIs

Remit2India – Remit2India services- Remit2India Features
I had bought property in Bangalore and my bank was not allowing me to transfer huge amount for the payment. Thanks to Google I found Remit2india and they let me complete the wire transfer smoothly. I am happy these new services are helpful to us NRIs.

Arvind Krishnan, Sacramento CA

%d bloggers like this: