Transferring money to India from abroad isn’t as much of a challenge today as it used to be a few years ago. The rise of online money transfer companies helped a great deal. These services provided a cheaper and more efficient alternative to bank transfers. This, in turn, has had a positive effect on the development of the Indian economy as a whole.
There aren’t many international money transfer companies operating within India yet. And those that do, often offer somewhat limited services. However, the increasing demand is sure to change this situation soon.
The Growing Need for International Money Transfers to India
Today India is at the top of the remittance receiving countries in the world. Indians working abroad sent over $68 billion back to their homes in 2016. This amount has been growing at a fast rate over the last decades and it shows no signs of stopping.
In fact, it grows faster due to the increased availability of money transfer services. The majority of all remittances, go to rural areas. People there rarely have access to banks. However, today you can benefit from the convenience of transferring to India with online providers. It’s easier for the average person from a small village to get to a computer with an Internet access than going to a bank. Therefore, such online platforms make it possible for more immigrants’ families to get the help they need.
With such a huge contribution to the country’s economy, it’s safe to say that online money transfer companies play an important part in improving the Indian economy. However, remittances aren’t the only way, through which these services help the country prosper.
Today, India is the second most popular destination for outsourcing in the world and the first in some industries. For example, India is the leader for IT outsourcing, and the IT industry is the fifth biggest in the country.
Businesses that outsource their services to India and everyone who hires freelancers from this country need to pay them for their services. The limitations associated with traditional banking routes are the same for these businesses. Therefore, they need alternative solutions to make this kind of outsourcing beneficial for them. Online money transfer platforms give them exactly what they need. Thus, they help increase the demand in the Indian workforce and create new jobs.
Challenges of Transferring Money to India from Abroad
Both immigrants and businesses that outsource to Indian professionals can appreciate the benefits of online money transfer companies. The main reason for this is that they can save quite a bit of money with their help.
Traditional bank transfers and services of companies like MoneyGram or Western Union can result in losses of 5-10% of the transfer amount in fees. Online money transfer platforms charge small fees, if any. And when using them, you can also get a better currency exchange rate, which helps you save further.
You also shouldn’t forget that traditional money transfers take a lot of time. Sometimes you might need to wait for up to a week before you can use the money. With online money transfers, you can get them in a few hours or a couple of days max.
The ease of use is another benefit that makes these companies more attractive. Some of them don’t even require for you to have a bank account in order to receive a transfer. All you need is a smartphone and an app that will provide you with all the necessary instructions on how to get your money.
On the other hand, the complexity of the banking process is notorious. Therefore, you might need professional help in order to understand all the intricacies connected with bank transfers coming from abroad. Never skip the fine print in Terms and Conditions, regardless of whether you use a bank or a money transfer company. This is the part of important paperwork where less trustworthy businesses hide nasty loopholes.
Please bear in mind that in India, all foreign currency transactions are regulated by the Foreign Exchange Management Act of 1999 and Foreign Exchange Dealer’s Association of India.
Money Transfers to India: Examples of the Best Companies
If you want to be confident in the security of your transfers, you should go for the company with a long history of excellent service. Payoneer in India is a fine example of this. It has over three million clients worldwide, and this number is growing constantly.
Payoneer transfers to India are specifically designed to be a great solution for freelancers. Their main benefit is that you don’t even need to have a bank account to use this service. This means that Payoneer offers a fantastic opportunity to the people in more rural areas, who don’t have easy access to banks.
Currencies Direct is one of the leading money transfer companies in the world. Therefore, it’s not surprising that it contributes to the huge and demanding Indian market. The company even has an office in the country. It’s a proof of commitment and trustworthiness that not many online money transfer companies offer today.
This company, however, doesn’t accept clients based in India. Therefore, it provides only inbound transfers for the country. On the other hand, the terms and rates offered by the company are very good, so everyone can benefit from its services, regardless of the transfer volume.
Money Transfers to India from Abroad: Final Thoughts
The market for money transfer services in India is huge, growing, and rife with opportunity. The coming of online transfer companies made a big impact on the country’s economy. However, there is still a lot of room available for companies willing to take the risk with working in India.
As both the outsourcing and remittances continue to increase, so will the appeal for the providers of these services. It’s true that the economy of India can be rather unstable, and such a volatile environment is a big risk for any financial service providers. But the positive changes, partially brought by the fact that transferring money to India has become cheaper and easier today, improve the situation as a whole. With more stability, more companies should be willing to provide India with options for effective and affordable money transfers from abroad.