It is a widely accepted fact that every year, millions of financial transactions take place on a daily basis. It can also be attributed to the fact that with the advent of technology, sending money back home has become somewhat comfortable. On the other hand, there are several means with the help of which one can send money to their home. In this context, it is worth mentioning that particular transaction charges are levied while sending money back to India. Moreover, the transaction costs are also dependent on the mode of transfer and cost of transfer. The cost of assignment plays a crucial role in deciding how much money is being deducted while sending funds to India. Hence, it is always good to be aware of these transaction charges as this would help the sender to communicate with the bank in case of any problems correctly.

Exchange Rate

This is commonly known as the speed through which one currency is being exchanged with another. Moreover, this rate varies from time to time as it is dependent on the global financial scenario and other mixed economic factors. In this context, it is worth mentioning that it is always good to wait until and unless the currency value of the receiver in India is lesser than that of the sender. For instance, if someone residing in Thailand wants to send money to a receiver who is situated in India, he or she should always lay stress on the fact that if the value of rupee is lesser than Thai baht so that more money can be sent.

Fees and taxes

The fees and taxes are always dependent on the sender’s bank and thus depend on a broad range of factors that also includes the economic structure of the sender’s bank. Moreover, the fees for transferring money would always rely on the service provider that is the bank and the mode through which the money is being transferred. On the other hand, in many countries across the world, a tax is being levied as service fees. Hence, the sender has to be careful while sending money to India as the absolute amount of taxes can be burdensome for the originator.

Outward remittances

It is the process with the help of which money is being transferred to foreign exchanges. The NRIs like to utilize this outward remittance in the course of transferring money to a recipient in India. On the other hand, it is feasible to go along with the transaction process as per the Foreign Exchange Management Act (FEMA). Moreover, these are the following transaction charges that are levied while transferring money to India.

Wire Transfer Charge

One can always use the money wire transfer procedure by using local bank account to a receiver bank account in India. It is also known as SWIFT, and it always requires the sender to visit their local branch and fill the details of the receiver. Although this process of transferring money is advantageous, the charge levied by the bank is still unknown. The costs also depend on the third party correspondent bank rates and the exchange rate. Usually, the fees are high, and the bank of the sender does not facilitate the time limit in completing the transaction.

Online transfers

Online transfers are one of the most favored modes of transmission as in recent years; almost every individual is familiar with the methods of an internet. Moreover, one should always opt for online transfers, as many of them do not levy service charges. However, it is always advisable to choose for credited online services as there would be no underlying risk for hidden terms and conditions.