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Review of various international money transfer options to India Updated information on Money Transfer in India
Though India is the largest recipient of foreign currency remittances , there is little information available on the various methods to send money to India. We have received money through various money transfer options and we review the charges, ease of use , reliability and service of these companies below . This is based on our personal experience and valid for small amounts . We have spent a lot of time checking the various options and we hope it will help readers to take an informed decision
Western Union - is one of oldest money transfer services but their charges are quite high (approx. US$18 for amounts less US$100 ). This service is simple, fast and reliable but the exchange rate can be lower than that for wire transfer/draft . Recommended for receiving payment from genuine customers in West African countries, since you get payment in cash. Though the money transferred is available to a recipient within 15 minutes, we have had to wait for 2.5 hours to receive the money ,due to problems in the agents office.
Wire/SWIFT/Telegraphic Transfer (TT) is a secure money transfer method from bank to bank. Depending on the country in which the sender is located the bank charges vary . Telegraphic transfer charges can be as high as US$45 for sending US$50. (from Indonesia to India). The charges are usually lower if the transfer if the transfer is directly from USA to India. Normally the amount is transferred to our account within 3 days. Kindly note that Standard Chartered bank in India charges US$14 for all foreign currency transactions in addition to TT charges of your bank. The sender should send a copy of the Telegraphic transfer receipt from senders bank to recipient, since banks require proof of transfer. At times the amount sent by TT can be reversed by your bank. It is not advisable to give your bank details to customers in West African countries .
Letter of credit (L/C) it is basically a letter of guarantee issued by the bank on behalf of the buyer/importer in favor of seller/exporter guarantying the payment subject to the bank receiving certain documentation regarding fulfillment of the transaction.as for l/c there are fixed minimum processing charges plus pecentage of amount ( if u are a big customer all these charges are negotiable). it also varies from bank to bank. This is the preferred mode of money transfer for transactions of amounts greater than US$5000
Draft/cashiers check in any major currency (US Dollar, Japanese Yen, Euro, Pound Sterling) sent by registered post is the cheapest option for senders in most countries. Nationalized banks in India charge a small commission + postal charges for encashing the draft and are the preferred for encashing low value cheques/drafts. Private banks charge a Rs 300 - Rs 500 flat fee irrespective of amount. We have en cashed our dollar cheques with Canara Bank , who require a photocopy of the cheque and take 21- 30 days for crediting our account. It is advisable to despatch goods only after the draft /cashiers check has been cleared, especially for first time customers.
Indian Rupee Drafts Exchange houses in the Middle Eastern countries,Singapore and other countries with a large Indian population charge as little as US$2 for preparing drafts in Indian Rupees since they have low overheads
Moneybookers Senders in select EU countries may pay thru their local bank transfer/cheque using Moneybookers and senders from other countries can pay through credit/debit card . The transfer charges are low but to convert the money to Indian rupees they charge a flat fee of about Rs 200/Euro 3.5 irrespective of the amount. Queries to customer support are usually answered within a day. Recipient receives money after 3-4 weeks
There are various other new electronic money transfer options available , but since we have not used any of them, we are unable to give any feedback. If you have any query , feedback or suggestion, kindly let us know by email or through our feedback form.
Money transfer, foreign exchange remittance FAQ - Questions asked by visitors to our website
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