Family Remittances – How To Ensure A Safe Passage For Your Hard-Earned Money
Family comes first – true to this phrase, outward family remittances are funds families transfer to their kin in foreign countries. This could be for education, travel, medical expenses, boarding and more. In 2019 alone, a whopping 26.92 million Indians traveled abroad. To add to these figures, nearly 3.74 crore Indians have traveled for higher education to foreign lands. In addition to education and travel for leisure, there are several other reasons for family remittances such as:
- Sending initial money to start a job abroad
- Cover medical expenses
- Give a family member a monetary gift
- Send money for maintenance of your home in a foreign country
- Permanent migration
- Invest in international markets
This shows the sheer movement of funds from across the world periodically, increasing the need for stable and secure remittance agencies. Only banks and Licensed Authorized II dealers have the right to send outward remittances on behalf of Indian citizens. TransWire, an initiative by Transcorp International Ltd, is a leader in cross-border remittances, offering unprecedented service for over 3 decades. We are a trusted authorized dealer II as per the Reserve Bank of India, having a presence in over 70 countries across the globe. Here is everything you need to know about family remittances and why it is important to choose a reliable remittance partner for all your transactions.
Features & Importance of Outward Family Remittances
Frequent Middle to Low-Value Transactions – Family remittances are characterized by frequent low to medium-value transactions monthly as and when individuals back home receive their salaries, especially in case of education loans. It must be noted that any individual cannot overshoot $250,000 in outward remittances in a financial year, across all the reasons for outward remittances. This ceiling is prescribed by the Liberalized Remittance Scheme of the RBI.
Heavy documentation – Outward remittances are characterized by heavy documentation, which senders must get right to avoid transaction failure. A valid Indian passport, PAN card, Aadhar Card, bank account statement, university letter/prospectus, immigration documents, proof of close relative abroad, invoice copy of hotel booking are some of the many documents required in outward remittances, based on the type and reason of remittance involved. With TransWire, one can have easy glitch-free outward remittances, as the system auto suggest documents to upload and validate online – so you do not have to travel anyplace, you can process all while sitting at your home.
Helps Regulate Demand for Various Currencies – Regular outward remittances help regulate the demand and supply for various foreign currencies. India has clocked in a whopping $19.6 billion in global remittances in the financial year ending March, 2022 under RBI’s Liberalized Remittance Scheme, making it one of the leading outward remitters in the world. TransWire is proud to be a part of this ecosystem, offering the feature of blocking live forex rates to make the most of your cross-border transfers.
Branches In from Remote Areas – More than half of the outward foreign remittances in India come from the “rich” states namely Andhra Pradesh, Maharashtra, and Punjab. These states have the highest number of students exploring foreign lands for education, higher numbers of investors, migrators and travelers. The money sent by these states branch in from many remote districts, towns and 2-tier/3-tier cities, not only the metros or state capitals. This gives rise to the need for a thorough financial remittances system. That’s where TransWire can help with our state-of-art technology and deep-rooted network of branches, agents and services.
Risks & Concerns Surrounding Family Remittances
High Cost of Transfer – Banks, post offices and other financial institutions are the costliest medium for family remittances. Costs of outward family remittances are around 7 per cent with reputable and registered cross-border agencies such as TransWire. This is the lowest across all channels of money transfer.
Limited Financial Inclusion & Financial Network – Many families in remote areas such as 2-tier and 3-tier cities areas aren’t equipped with the necessary infrastructure to send periodic foreign remittances. They also have limited reputable cross-border remittance agencies such as TransWire. We aim to change that by strengthening our network and serving more and more customers every day.
Lack of Knowledge – Many remitters are not aware of the various laws surrounding foreign remittances. for example, remittances cannot be made for trading in foreign exchange, buying lottery tickets and other several reasons. Also, there is limited knowledge on processes, paperwork and limitations involved. it helps to have an expert in outward remittances by your side. TransWire is a trusted dealer for foreign remittances, making it a safe option for those sending money abroad for the first time.
Final Word
TransWire provides a safe passage to your onward family remittances. We understand the hard work and effort that goes behind every rupee earned, and its significance in education, travel, medical expenses and other expenditures abroad. We take it upon ourselves to reach the same to your family in a speedy, safe and cost-efficient route. Reach out to us today for all your cross-border remittance needs.
