Sending Money Overseas from India? Here’s What Every BookMyForex Customer Should Know!
Understanding Wire Transfers
A wire transfer is a quick and secure way to send money electronically from one bank account to another, either within the same country or internationally. International wire transfers are commonly used for overseas transactions such as paying for tuition abroad, sending money to family, making smart investments abroad, etc. When you initiate an international wire transfer, your bank transfers the funds to the recipient’s bank through a secure network, like SWIFT. The process requires you to provide information such as the recipient’s name, bank account number, and the bank’s SWIFT code.
While banks in India also process wire transfers, they often charge high fees – anywhere from Rs. 1500 to Rs. 2000 along with hidden rate markups. A more affordable alternative is using platforms like BookMyForex. With BookMyForex, you’ll enjoy zero transfer fees and the lowest rate guarantee for your international wire transfers. We transfer funds through our reputed partner banks, thus maintaining the same level of trust and security that customers expect from traditional banks while providing far better exchange rates.
Why Indians Transfer Money Abroad
Under the Liberalized Remittance Scheme (LRS), Indians can send up to $2,50,000 per financial year for various purposes. Below are some of the most common reasons why Indians transfer money abroad:
1. Education: Many Indian students pursue higher education in countries like US, UK, Canada, and Australia. Parents often transfer money abroad to their children for tuition fees, accommodation, and other costs associated with studying abroad.
2. Family Maintenance: Sending money to loved ones abroad is not just a financial transaction but also a way to stay connected and show care, even from a distance. Many Indians send money to family members living abroad to help them meet their daily needs.
3. Medical Treatment Abroad: Indians often seek medical treatment in countries like the USA, Singapore, UK, and Germany. They transfer money abroad to cover medical expenses, including advanced treatments or surgeries that may not be available in India.
4. Investment in Foreign Stocks: Over the years, more and more Indians have started investing in foreign stocks, mutual funds, ETFs, and other equity instruments. A lot of people are transferring money abroad to make these investments happen.
5. Emigration and Foreign Employment: Countries like Canada and Australia seeing a surge in Indian immigrants. As more Indians relocate or settle abroad, they often need to remit money for visa-related expenses, initial settlement funds, and housing.
Documents Required for International Money Transfers from India
The documents required for international money transfers through BookMyForex vary depending on the purpose of your transfer. For example, if you’re sending money for university fees, you’ll need to upload your I-20 form/ admission letter from the university. If you’re transferring funds to a family member abroad, you’ll need to provide proof of your relationship with the beneficiary.
In general, two essential documents you’ll definitely need to upload online, no matter the purpose, are:
— Pan Card
— Remitter Photo Cum Address Proof
For a complete list of documents based on the purpose of your transfer, click here
Factors to Consider When Transferring Money Abroad
1. Exchange Rates: Even a small markup in rates can impact the amount received. Look for providers offering the best exchange rates. Banks apply up to a 2.5% markup over base rates, whereas BookMyForex offers the lowest rate guarantee on international money transfers. Let’s say you’re transferring $10,000 and the USD to INR rate offered by BookMyForex is ₹85 compared to ₹86 offered by another provider, the beneficiary would receive ₹10,000 more with the better rate. This is why it’s crucial to compare rates and choose providers like BookMyForex, which offers the lowest rate guarantee on international money transfers.
2. Transfer Fees: Compare the fees associated with the money transfer platforms and go for the most economical option. Banks typically charge a flat fee of up to Rs. 1500 and some platforms in India charge a percentage fee that can go as high as 8000 INR depending on the amount transferred. In contrast, BookMyForex offers zero transfer fees – simply use the promo code “ZEROBANKFEE” when initiating a transfer through BookMyForex.
3. Intermediary Bank Charges and Recipient Bank Fees: When sending money abroad, be aware of intermediary bank charges. These charges occur when the transfer passes through one or more intermediary banks before reaching the recipient's account. Each bank involved may deduct a fee, which can range from $15 to $50 or more. Additionally, the recipient’s bank may also charge a fee for processing the incoming transfer. To avoid surprises, choose a provider like BookMyForex, which ensures transparency in costs and allows you to calculate the exact amount your recipient will receive.
4. Transfer Speed: Consider how quickly you need the money to reach its destination. While transfers via banks and other platforms can take anywhere from 3-4 business days, BookMyForex stands out by offering same-day transfers for foreign remittances related to education. For other purposes, transfers are still exceptionally fast and completed within 12 to 48 business hours.
5. Security and Compliance: When selecting a platform for international money transfers, it’s important to be cautious, as many platforms don’t prioritize the security of your financial and personal data, leaving your sensitive information exposed to potential risks. By choosing a trusted and secured platform like BookMyForex, you can have peace of mind knowing that your transactions are fully safeguarded. BookMyForex utilizes secure payment gateways and employs document watermarking to protect your sensitive information. The platform is fully compliant with the Reserve Bank of India (RBI) regulations and adheres strictly to the Foreign Exchange Management Act (FEMA).
6. Tax Collected at Source (TCS): Regardless of the platform used, TCS applies to your remittances. For education and medical expenses, 5% TCS is applicable while for other types of remittances exceeding INR 7 lakh in a financial year, 20% TCS is applicable. Transfers below INR 7 lakh in a financial year are exempt from TCS. You can claim TCS as a tax credit when filing your income tax returns.
