Sending money abroad has never been easier before. Gone are the days when you had to visit multiple banks to compare the rates and then proceed ahead with the process. Finding the best exchange rate ensures that you get more foreign currency for your Indian Rupee (INR) while making international money transfers from India, and it’s also important to understand how and where to find the best exchange rates.
When making a foreign money transfer, it’s important to shop around and weigh your options. You should take some time to review all of the online foreign money transfer services and choose the one that best meets your needs.
Here are a few pointers to consider when attempting to send money abroad from India:
1. Comparing Various Money Transfer Platforms:
A person must evaluate a number of different online money transfer services. This will take very little time but will be highly useful to you. This will undoubtedly help you find the best exchange rates and transfer fees. You can also read past customer reviews on the website and pick the one that offers the most dependable support.
You can check out online forex marketplaces, which search the rates offered by all banks and money changers and then provide the best rates based on that information.
2. Avoiding Multiple Small Transfers:
Sending a large amount in one transaction is preferable to sending it in smaller amounts and in multiple transactions. This will save you a lot of money on bank commissions and GST fees associated with currency conversions.
The GST rates that will apply to your international transactions are mentioned below. If the total amount of funds being transferred is less than INR 1 lac, a 0.18 percent GST rate would be applied to the overall gross value of the currency, with a minimum tax of INR 45.
If the total amount being transferred is between INR 1 lac and INR 10 lac, a 0.09 percent GST rate will be applied to the total gross value of the currency, plus INR 180 in other costs.
If the total gross value of the currency you’re exchanging exceeds INR 10 lac, a 0.018 percent GST rate, plus INR 990 in other costs, would be added to the total gross value of the currency.
So, you can clearly see that rather than doing a bunch of transactions, you can do it in one go and save up on the charges.
3. Understanding the Transfer Limits:
The transfer fees that are applied to transactions are directly proportional to the amount you want to send abroad. You should also check the online money transfer platform’s cap, as it can differ from platform to platform in terms of how much money you can send abroad in one transaction.
A resident person is allowed to transfer money abroad up to USD 2,50,000 per fiscal year. It’s part of the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS). This cap can be used in one transaction or several transactions throughout the year.
Regardless of the sum being transferred, you must produce your PAN card whenever you send money from India to another country. This is to ensure that a person does not exceed the USD 2,50,000 cap set by the Liberalized Remittance Scheme (LRS) in a single financial year.
4. Checking if the Recipient’s Bank is Applying any Cross-Border Transfer Charges:
Sending money overseas can be a costly process if you don’t pay attention to the exchange rates and the different types of fees involved. There will be platforms where the fees incurred are low but the exchange rates are higher, and vice versa. As a result, you must add up all of your transaction costs and choose the option that saves you the most money.
Also, unless you have an urgent need for money, you should not pay extra fees to speed up the money transfer process. It is important to check the refund policy when arranging a cash pick-up in case the collector is unable to pick up the funds on time. You can also check if the recipient would be required to pay the receiving charge or any other unknown service charges that the recipient’s bank might place on the payment.
5. Keeping Close Tabs on Currency Rate Fluctuations:
The foreign exchange market is one of the world’s most liquid. The prices are constantly shifting, and if you can grasp how the forex markets operate, it would be extremely beneficial for you to purchase currency at the best possible time. There is a lot of volatility in the economy, which you can take advantage of by purchasing foreign currency while the rates are low. Even a small paisa difference in currency rates will save you a lot of money while making a large transaction.
6. Understanding Procedures and Liabilities:
It’s important that you understand the procedures of the money transfer service you’ve chosen to send money overseas from India. What happens if there is a problem with a money transaction, and who can you contact? This is a big concern, and you should choose a money transfer network with excellent customer service. If there is a pause in money transfer, it can be stressful, but good customer service can still clear up your questions and put your mind at ease.
Before proceeding with your money transfer from India to a foreign country, you should review the company’s policies for any potential liabilities.
These are some of the tips that you can follow while trying to remit money abroad. There is no easy way to get your hands at the best exchange rates because the best choice varies depending on so many variables. However, by understanding what to avoid and how to compare options when sending money abroad, you can save money and possibly get the best exchange rate.