Many Non-Resident Indians go abroad for providing a better means of living for their families. Non-Resident Indians are one of the major sources of income for the Indian economy. The NRIs have many options for sending their hard-earned money back to their home country without any hassle or confusion. Person of Indian origin (PIO) and Overseas citizen of India (OCI) can also send money to India for making investments
. At the same time, if the NRI is transferring a significant amount, they should be able to show the source of funds and the reason for the transfer, if requested by the Indian Income Tax department.
The receipt of foreign currency to Indian shores is known as Inward remittances.
The NRIs can use the following methods to send money back home:
Bank Wire transfer:
The Bank wire transfer happens electronically through two banks. The transfer of funds occurs when the NRI types in the banking codes, routing codes and the branch code of the receiver’s bank account in India.
Many agencies like Western Union, UAE exchange, offer the services of fund remittances across the country. These agencies also have their offices around the globe for the receiver to receive the remittances. There are fewer takers for the Agent transfer option as they charge high remittance charge and have lower limits for sending the money. The NRI needs to submit the required documents and identification to transfer the money, and the receiver has to show their identification for receiving the funds.
This is one of fastest growing options for money remittance across the world. Just a click of the button will transfer the funds in a minute to the receiver’s account. All that the NRI has to do is to save the beneficiary details in their internet banking account options and do the transfer at any time. However, the NRI has to keep in mind the exchange rate, remittance charges, time for completion of the transaction from banker to banker and the timezone difference.
The NRI also has the option to draw a demand draft on the name of the beneficiary and post it to the beneficiary. The beneficiary can then cash the Demand Draft by presenting to their banker and crediting the amount to their bank account.
NRI bank accounts:
NRIs can hold Non-Resident Ordinary (NRO) or Non-Resident External (NRE), or Foreign Currency Non-Resident (FCNR) accounts in India. These accounts help the NRI to carry out inward and outward remittances effortlessly and it is also very simple to operate.
Foreign Currency Drafts:
This type of draft is used for business transactions. In this deal, the NRI has to take demand draft of the resident country’s currency and mail it to the receiver. This foreign currency drafts usually take up to 21 days for encashment.
Remittance card is another type of reloadable debit card. The NRI has to purchase the card on the name of the recipient and provide the required documentation. Once the card is issued, the recipient can use the card for making purchases or in ATMs. It is a cost-effective option for NRIs, and major banks offer this privilege to their NRI customers.
Transferring money to India has now become a hassle-free and transparent process. Hence, NRIs from any part of the world can transfer their funds for making Investments in India
, cater to their family expenses like education, marriage or investments like property purchase, mutual funds
, stock market transactions
without any hitch.