Five Factors To Consider Before Conducting Outward Remittances For Education
Going abroad to study is a dream nurtured by thousands of young Indians. Parents, guardians and family members save for this big day to support their child’s career and help them build a successful future. As many as 4.5 lac students spread their wings and flew to foreign lands in 2021 alone. This fast-growing demand for foreign degrees and universities poses a challenge for safe, secure and speedy money transfers for Indian parents to their children.
What Are Outward Remittances?
Outward remittances refer to the umbrella term of sending money abroad for various purposes such as tuition fees, boarding and personal expenses, investments, purchasing foreign assets, travel, business expansion and more. While business owners and investors are well-versed with foreign remittances and the regulations surrounding the same, regular middle-class individuals are often caught in the woods. This article helps those new to the world of outward remittances understand its regulatory framework, safety aspects and other nuances for recurrent and cost-effective outward remittances.
What Are The Ways One Can Send Money Online?
Post Offices: Non-deposit-taking institutions such as post offices are one of the under-developed methods of sending money abroad. The cost of sending funds through post offices is lesser when compared to SWIFT transactions by banks*. This is largely attributed to the fact that post offices are a government-run network. Having said that, it is a fairly primitive option in the time of mobile money and authorized money transfer agents that offer secure results and quick turnaround time.
Demand Drafts: This traditional method of money transfer was the sole option for years. Now with cheaper and more efficient channels of outwards remittances, demand drafts find fewer takers. A demand draft for foreign remittances is executed by converting the payable value to the foreign currency of the destination country, with the addition of processing fees and bank forex fees. The receiving banks also levy their charges, making DDs an expensive and arduous outward remittance method. Additionally, there is always a risk of loss or damage to the physical DD.
Bank Wire Transfers: Banks remain the most expensive type of service providers for foreign remittances, with an average cost of 10.94 per cent. What’s more, the transfer could take anywhere between 3-5 working days. Banks also charge their fees and exercise their exchange rate, which is more expensive than the running market rate. This makes foreign remittance companies such as Transwire the most preferred option for parents, investors, buyers, travellers and anyone looking to remit money overseas.
Money Transfer Agents: Cross-border remittance companies have revolutionized the foreign transfer landscape. With a far-reaching network and secure transactions, they have emerged as a preferred choice not only for parents making outward remittances for education but also for businessmen looking to make purchases, foreign travellers and investors.
What To Consider Before Choosing A Method of Remittance?
Digital money transfers can be a daunting task for an average Indian with limited exposure to online banking and outward remittances. Here are five things to consider before choosing a foreign remittance method.
- Authorised Agent
Several run-off-the-mill companies may claim to be foreign money transfer agents. Steer clear of fraudulent entities by checking the authenticity of an agent. Ensure you approach only authorized banks, authorized money exchangers or dealers that are registered Category II dealers for foreign remittances with the Reserve Bank of India. A remittance agent that complies with the Foreign Exchange Management Act of 1999 is one you should opt for. Transwire follows all the laid out rules and regulations regarding cross-border remittances, ensuring your money is in safe hands.
- Turnaround Time
Gone are the days when turnaround time for outward remittances runs into several working days. With the advent of reputable cross-border remittance agencies such as Transwire, the turnaround time for cross-border remittances has seen an unprecedented shift. From days to mere minutes, Transwire is a reputable partner for your foreign payment requirements.
- Cost of Transfer
Foreign currency exchange rates, bank/operator fees and recipient bank fees are some of the costs involved in cross-border remittances. Globally, sending remittances cost an average of 6.09 per cent*, as per the World Bank for 2021. Banks are an expensive route, with an average cost of 10.94 per cent. Money transfer agents such as Transwire prove to be the most cost-efficient route for foreign remittances.
- Documentation Required
Providing accurate KYC information is the key to ensuring you get your foreign remittance right every single time. This foremost step allows the money transfer agent to execute your transaction effortlessly. Documents such as university letters, PAN cards, and the purpose of remittance are important to avoid hassle-free money transfers.
- Accessibility In The Recipient Country
Choose a method of remittance that is easy to access even in the recipient country. Sub-Saharan African region usually has a limited foreign remittance network, which is also the reason why it is one of the most expensive regions to send and receive money. In such regions, post office transfers or demand drafts may be a poor choice that can throw up several issues. Instead, opt for a reputable money transfer agent with a strong network in the host country, so your funds can reach even the remotest town or district.
Why Should You Choose Transwire For All Your Cross-Broder Remittance Requirements?
Hard-earned money must be handled with precision, safety and complete privacy. We at Transwire understand the effort and planning involved in sending your children abroad to study, and we would be happy to share the responsibility of financial logistics with you. As authorized dealers II from the Reserve Bank of India, we offer safe, speedy and seamless digital remittances.
With over three decades of rich and diverse remittance experience, Transwire is the best international money transfer agency in terms of safety, speed and simplicity of service. Our presence is in over 70 countries, ensuring you are empowered to reach your money in any corner of the world at cost-effective rates! Our far-reaching network and simple money transfer app make it easy for any layman to book transactions. All you need to do is register on our website and upload the necessary documents before you book your transaction at a live exchange rate. Simply make the payment and let our remittance app take it forward for you in a secure manner! Ask our thousands of satisfied customers and you will know why we are the leading RBI Authorized Foreign Exchange Dealers.
Final Word
Trust Transwire to be the wind beneath your child’s wings in their journey to conquer their dreams! Reach out to us to understand how we can make foreign money transfers easy for you the first time and every time.
