15th August, 2012 – Celebrating India’s 66th Independence Day.

 

India can boast of its freedom much different than other nations, a freedom won without a war. Saw the birth of a super power, which still in many ways in its infancy.

A day to look back and feel the FREEDOM in the wind, the day the British bid adieu, a day that remind us that much more needs to be done for a majority of the population that lacks basic quality of life.

A proud moment for all and a reminder to the post-Independence born citizens to salute the endless spirit of its nation’s Heros that brought us freedom. With a promise to keep the struggle on to achieve what our leaders dreamt off.

And hope that someday our children value what they have and salute the sacrifice of many that has made this Independence Day possible.

Wishing all a Very Happy 66th Independence Day!

NRIs sent home $4.8 bn. (between April and May’12)

To take advantage of the weakening rupee vis-a-vis dollar and higher returns, non residents have pumped in a record $4.753 billion in local bank deposits during April and May, seven times higher than the same period last year.

Indians working abroad prefer NRE (non-resident external rupee accounts) scheme the most as the scheme offers interest rates akin to high domestic deposit rates. This scheme saw an net inflow of $5.502 billion in the two months, compared to an net outfow of $133 million in the corresponding period in 2011, according to Reserve Bank of India’s latest data published.

The non-resident ordinary rupee ( NRO) account, which is non repatriable or strictly for NRI’s local use has seen a modest inflow of $46 million.

Reserve Bank of India has deregulated the interest rates on NRI deposits in December last year which prompted NRIs to invest $4.658 billion between January and March this year which was 40% of total NRI flow of $11.9 billion in 2011-12.

 

NRIs will now have to pay service tax for sending money home

Remitting money to dependents in India by non-resident Indians (NRIs) could attract a service tax beginning July 1, 2012. The service of transferring remittances into India have been brought under the service tax regime, and will attract 12.36 % tax. As proposed by The Union Government.

Experts say that this move is likely to push many NRIs to explore illegal channels to bring their dollars into the country.

Remittance flows intoIndiaamounted to $64 billion in 2011, compared with around $58 billion the previous year, according to World Bank’s Migration and Development report. Remittances are expected to be around $70 billion in 2012. According to the Reserve Bank of India data there are 30 million NRIs. Currently no other country imposes tax on remittances and India would be one of the first.

Experts also say that imposing tax on remittance is also unjust because a major share of the money is used to the daily needs of family members of the NRIs.

Remit2India’s Power20 – Get $10* EXTRA on each of your first two transaction

If you have just registered with Remit2India.com or registered before but haven’t yet used the services, Remit2India brings you a limited period offer to ensure that you get the best when you send money through it. Get up to $20 extra while sending money home all through this month. This special offer is valid till 30th March 2012.

So, hurry and make sure that you make the most of this offer. To know more click http://bit.ly/r2ip20

*Conditions Apply

Inheritance of agricultural land by NRIs

Indian Laws governing the investment opportunities by NRIs are governed by Foreign Exchange Management Act, 1999 (FEMA), according to which NRIs and PIOs in India (non-resident Indians and Persons of Indian Origin) are prohibited from buying agricultural land in India. Under the general permission granted by Reserve Bank of India, properties other than agricultural land, farm house and plantation property can be acquired by foreign citizen of Indian Origin provided the purchase consideration is met either out of inward remittance in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE (Non Resident External Rupee Account) or FCNR ( Foreign Currency Account) accounts maintained with Indian banks. The reason relating to the prohibition clause, about agricultural land is mainly to protect farmers from foreign conglomerates looking to buying up agricultural land.

Indian NRIs cannot buy agricultural land in India and this is applicable to the whole of India. Approval is required from the Reserve bank of India which one can assume is not easily available and this would depend only on individual circumstances. In addition to that, some State Governments in India have rules that allow only farmers to buy agricultural land in their State and this restricts even Indian citizens from buying agricultural land unless they come from a family of farmers. Therefore, one cannot complain that due to the above prohibition, NRI investment options have been mitigated. On the other hand, NRIs who have acquired foreign citizenship, are sometimes mislead into believing that they cannot continue to hold agricultural land as foreigners cannot hold agricultural land in India. But this is not all encompassing, because Indian NRI’s can continue to hold agricultural land or any other property they own in India provided they had acquired them legally before accepting foreign citizenship. NRIs and Foreign Citizens of Indian Origin cannot acquire agricultural land, even by way of gift. However they can acquire agricultural land by way of inheritance and an agricultural property or land thus acquired can only be sold to a resident in India and not to an NRI.

Just like every cloud has a silver lining, therefore, even if it seems like there are a lot of obstacles involved in the process of inheriting an agricultural land as an NRI, but eventually, the initiative generates one of the biggest advantages eliminating the hurdle of paying any inheritance tax for NRIs. Also, NRIs can sell the inherited agricultural land to a resident Indian, but they will have to pay capital gains tax on the sale proceeds. Once the tax is paid the remaining sale proceeds can be remitted abroad which again should not exceed 1 million USD in any financial year. Therefore, these are a few attributes an NRI must keep in mind while deciding on investment strategies to the best of their suitability. Therefore, the conclusion lies in the fact that, inheritance of agricultural land is not covered by the ban on NRIs, but in fact it is an exception to the rule.

Source:- blogs.siliconindia.com

Remit2India’s MOR(Money on Referral) Hat-Trick Offer is back

And certainly with a bang…


Remit2India gives you MOR reasons to smile and earn with its referral program ‘Money On Referral’ (MOR). All one has to do is refer his/her NRI friends and he/she can earn Rs. 1,000/- per referral. Your friends also get Rs. 500 for using our service through your referral.

And the good part is one can refer as many NRI friends as possible. Which means more the friends one refers, more money he/she can earn.

So what are you waiting for. Start referring now and make an unlimited amount of money!

The customer also has the choice to redeem this as extra money sent as remittance or even as a Gift Voucher against a host of gifting items from a special catalog.

So, spread the smile with Remit2India’s unique referral program ‘MOR’.

E-Commerce – A common link connecting businesses all across the world

Indian eCommerce market reached US$5.04 billion in 2010, up from US$3.97 billion in 2009. Internet users have also grown by 44% in Asia and 22.7% in Europe in the last decade.

Bill Gates, the richest man in the world, once said “ In every one or two decades there comes a technology which changes the way humans carry out their daily lives forever”.

1950’s witnessed the advent of television that changed human entertainment forever, 1960’s saw the computer that stream-lined work structure and late 1970’s Internet changed the way humans communicated, learnt, advertised, conducted business and so on. As a result of this, an important human chore was digitalized, like a number of others. Thus, e-commerce came into the picture with a wide horizon.

Today, the amount of trade conducted electronically has grown exponentially with increasing access to Internet. Indian eCommerce market reached US$5.04 billion in 2010, up from US$3.97 billion in 2009. Internet users have also grown by 44% in Asia and 22.7% in Europe in the last decade.

This growth is parallel to the evolution of information and communication technology and the availability of the appropriate Information and Communication Technology (ICT) infrastructure in each nation.

As the number of Internet users grow, e-commerce is bound to grow. For many developed countries such as US, UK and Europe, e-commerce is the best way to reach new markets with local goods. Just to cite an example, India’s largest (and one of the world’s top 5) e-commerce website – Indian Railway Catering and Tourism Corporation (IRCTC) that manages the online rail ticketing for the Indian Railways, has recently gotten into the record books for the largest number of e-commerce transactions daily.

This indeed speaks volumes on the phenomenal success and the growing importance of e-travel agencies year on year.

The liberalization of Indian financial sector along with banking sector reforms has exposed the Indian banks to a new economic environment that is characterized by increase competition & new regulatory requirements. As a result, there is transformation in every sphere of activities amongst Indian banks. The new generation banks have led to an increased competition necessary to spearheaded changes towards higher utilization of e-commerce.  The Reserve Bank of India as the central bank of the country has been playing a development role and has taken several initiatives for safe, secure, sound & efficient payment system under the electronic banking environment.

Realizing the plethora of opportunities available in the banking & finance sector, TimesofMoney, the pioneer in online money transfers, has continuously evolved over the years offering services such as global money transfers, E-payments, co-branded cards and white label solutions, across geographies targeting local and NRI customers.

For any country, the infrastructural framework – in terms of connectivity, security, reliability and affordability – plays a key role in how quickly the nation can enhance its e-readiness. Positive strides are expected from the governing bodies for smooth implementation and complementing the growth of this sector.

In a number of other countries, policies and legal framework for IT sector are still in their infancy, but there remains a strong commitment by various heads of government to provide the necessary leadership to make e-commerce a sustainable and more viable option. There is no doubt that e-commerce, which has become a common link connecting businesses all across the world, is here to stay.

Happy Republic Day!!

26th January 1950 was one of the most important days in Indian history as on that day the constitution of India came into existence. India became a truly sovereign state ever since 26th January has been celebrated as a national holiday and is celebrated as The Republic Day of India.

To mark the importance of this occasion, every year a grand parade is held in the capital, from the Rajghat, along the Vijaypath. The different regiments of the army, the Navy and the Air Force march past in all their finery and official decorations even the horses of the cavalry are attractively caparisoned to suit the occasion. The crème of N.C.C cadets, selected from all over the country consider it an honour to participate in this event, as do the school children from various schools in the capital.

The parade is followed by a pageant of spectacular displays from the different states of the country. These moving exhibits depict scenes of activities of people in those states and the music and songs of that particular state accompany each display. Each display brings out the diversity and richness of the culture of India and the whole show lends a festive air to the occasion.

The Republic Day of India sparks a patriotic fervor in the heart of every Indian. It is a day to remember and honour Indian heroes and renew the pledge to protect and cherish their motherland. This fervor of the people brings the whole country together even in her essential diversity. Every part of the country is represented in occasion, which makes the Republic Day the most popular of all the national holidays of India.

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

Importance of Remittances

Remittances contribute to the financial and social inclusion of needy people worldwide and to the economic growth of a country. They also play an important role during financial crises. The recent World Bank report on remittances is a testimony to the fact that remittances flows have remained more resilient as compared to private debt and equity flows and foreign direct investment.

Remittances are stable and may even tend to be counter-cyclical in times of economic hardship. Remittances are now more than double the size of net official flows and are second only to foreign direct investment as a source of external finance for developing countries. In 36 out of 153 developing countries, remittances are larger than all capital flows, public and private.

Remittances could also help in reducing poverty, as it could be the poor who migrate and send money to their families. Some may argue that it is actually the rich who can migrate and send back remittances. Remittances could also be used to promote literacy. Studies show that the school dropout rate is lower and enrollment rate is higher in households that receive remittances.

There is tremendous potential for using remittances to encourage development in countries. Remittances could increase when the home country’s economy is going through a patchy phase. During such times, an individual might prefer to remit more to aid his family’s consumption back home. The money sent home could also be used to promote economic growth, increased investment and community development.

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