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G. Madhan

YOU are travelling abroad and want to send money back home quickly. Or, you are an NRI working abroad looking to transfer your hard earned money home. This is how you can do it.

Money can be transferred through banks, Web sites such as Remit2India.com, and money transfer companies such as Western Union. However, each has its advantages and disadvantages.

Bank transfer

Within the ambit of banking transfer there are several methods of sending money. The most cost effective mode is writing a cheque in the local currency and mailing it across to the beneficiary. However, a cheque takes 30-45 days for clearance and also cost the recipient a few hundred rupees.

You can also send a foreign draft through banks. Sending a foreign draft is similar to sending a local draft. The bank collects the money from you in the form of a cheque or a certified cheque and gives a rupee draft. You mail the draft to the recipient for encashment. If you are an NRI, you can also remit the money in your bank account in India. The procedure is the same, except that you mail the draft to the branch where your account is maintained. In case the draft is payable at a place other than where you have the account, the instrument is sent for collection and normal charges are levied.

Telegraphic transfer or wire transfer is the fastest way to transfer funds through a bank. You do not have to be a customer of the bank to wire funds, and this is faster than a foreign draft. But the catch is you have to pay cash and the fee varies based on your relationship with the bank (customer or non-customer). You will also have to furnish such information as name of beneficiary bank/branch, beneficiary's name, address and a/c no, remitter's name and address, and so on to the bank.

If you are on vacation or on a short visit to India, traveller's cheques are a safe option. You can also convert them into money fast. All you need to do is go to the nearest RBI-recognised moneychanger/bank and show your passport to convert the traveller's cheque into Indian rupee. However, if the traveller's cheque is a gift, you have to deposit it in a bank. Carrying plastic money is also a good option for accessing cash quickly. For instance, a Citibank banking card with a Mastercard logo allows you to shop or get cash from ATMs across the globe. This card does not have finance charges and annual fees.

However, these cards have daily spending limits. Some banks with a good international network also offer ATM facilities for international debit, credit and charge cards. For instance, you can use an ATM card of HDFC Bank to draw money.

Banks also offer online banking transfer facilities which enable you to track your remittance online. For instance, ICICI Bank offers products, such as Power Transfer, e-transfer, and cheque transfer. The time taken for realising money varies from product to product. For more details contact the banks.

Banking transfers are very convenient, particularly for cheque/drafts/wire transfer/online banking transfer, if both the sender and the beneficiary have accounts in the same bank.

Money transfer companies

Some companies, such as Western Union Money Transfer and MoneyGram, also transfer funds. All you need to do is locate the nearest agent who represents the money transfer company, fill in "to send money" format, and pay the cash and the service fee. The agent will, in turn, provide you with a money transfer control number. You have to communicate this number to the beneficiary.

Within an hour, the beneficiary can collect the money from the nearest agent by filling in the "to receive money" form and providing a valid identification. Generally, in India, identification such as valid Passport, Voters ID, PAN No, and driving licence are accepted. Depending on the location and amount of money involved, the beneficiary may be asked a "test question" to verify whether he/she is the intended receiver. The test question is created by you (the sender).

However, it should be noted that maximum amount that can be sent per transaction should not exceed (US $2,500) as per the Indian Government's requirement. Besides, money transfer payments are reserved only for private consumer use and not for commercial, business or investment purposes. It should also be noted that the agent will pay the transferred amount in the form of cash up to Rs 50,000. For higher payouts, the agent will issue a cheque which can be encashed in banks. However, there is no cash payout limit for foreign passport holders in India. As per the Government's requirement, a single beneficiary cannot receive more than 12 payments through money transfer annually.

Web site transfers

Many Web sites also transfer money. For instance, (remit2india) www.timesofmoney.com offers this service.

These Web sites also enable you track your money online. All you need to do is log on to the site and fill the requisite details (yours and the beneficiary's, the amount and the payment mode) for sending the money. The beneficiary will receive the money in the form of cheque or demand draft or through direct deposits (if the beneficiary has account with any of the company's partner banks). The fee varies based on the transfer amount, mode of payment and sender's location.

A word of caution to those who send money through Web sites — kindly ensure that the Web site is a reputed one and recognised by the Reserve Bank of India. Before deciding on the mode of transfer, evaluate the cost involved in each method, the time taken, the ease at which you can send and receive funds, safety and the transaction limit.

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