International Money Transfer For Your Family Maintenance Needs A Beginner’s Guide

International money transfer

The globalised environment of the modern world has necessitated a free and fast flow of capital across national borders. However, outward remittance remains a complex topic for many ordinary Indians as they grapple with the regulatory issues surrounding the international money transfer process. Data from the Reserve Bank of India (RBI) shows that Indians sent US$ 18751.4 million abroad in 2019-20. Travel and education together accounted for over 60% of it, while outward remittance for family maintenance formed 18% of the total amount. 

As more and more Indians move abroad to pursue new opportunities, international remittance for family support garners increasing relevance. What do international transfers for family maintenance entail? What is the easiest way to send money to family members living abroad? Let’s answer these questions and more in the following sections!

Outward Remittance for Family Maintenance: A Growing Necessity in Recent Times

In the earlier days, foreign remittances for family maintenance resulted in capital inflows. Children settled abroad would send money to their parents in India and support them in running their households. But now, the situation has changed drastically. A large number of Indians emigrate every year to pursue promising opportunities across the globe. Their families in India offer assistance by sending them money with outward remittance systems. RBI categorises these payments as “Maintenance for Close Relatives”. This category can cover several aspects:

  • Maintenance of the household while the primary income earner is living in India
  • Financial support for close family members related by blood or marriage
  • Financial assistance for children who are studying or setting up a livelihood abroad

RBI’s Rules for Outward Remittance: Decoding the Regulations for Sending Money Abroad

RBI has a “Liberalised Remittance Scheme” (LRS), laying down the rules for an overseas transfer. The following points highlight the regulations under LRS:

  • Resident Indians (including minor children) are eligible for outward remittances up to US$250,000 in each financial year between April to March.
  • These transfers are allowed for capital account transfers, current account transfers, or a combination of the two.
  • This limit includes the foreign exchange facilities available to a resident Indian.

LRS does not allow Indians to make capital account transfers to countries that the Financial Action Task Force (FATF) deems non-cooperative. Moreover, RBI issues advisories to banks with the names of people who pose risks of terrorism. Resident Indians cannot send money to these individuals under the LRS. Besides these limitations, the LRS offers substantial flexibility to Indians for sending their money abroad.

How to Send Money to Your Family Abroad?

There are two popular approaches for sending money to family members living abroad:

  • Remittance Via Banks: Indians have traditionally relied on banks to manage their international transfers. You can get a foreign currency demand draft (FCDD) from your preferred bank and send it to your family member. They can present the FCDD to their drawee bank and receive the amount. However, this is a time-consuming and complicated process. Nowadays, banks use SWIFT transfers for direct interbank remittances. You can submit your request for a bank transfer and wait for up to five working days. While this is a trustworthy process, it is not as fast and convenient as the modern fintech-enabled remittance services available in the market.
  • Remittance through a Money Transfer Platform: Money transfer platforms can help you send money to more than 40 countries from the comfort of your couch. Top outward remittance platforms allow users to send money on the go with their cutting-edge fintech model. The hassle-free system of online money transfers is convenient and quick, helping people manage their family maintenance needs.

Sending Money with Transwire- The Best Money Transfer Platform

Unsure which Forex organisation you should approach? Transwire can simplify your outward remittance woes.

Transwire has the ability in managing international money transfers. They provide an easy-to-use online system to initiate overseas payments for family maintenance needs.

Transwire is a trusted money transfer platform because it ensures secure payments and strict compliance with RBI norms. The RBI has recognised Transwire as an authorised category II dealer, facilitating secure transactions across national borders. We have supported customers in sending money to more than seventy countries and continue to do so with a complete commitment to transparency and customer service. 

The process for remitting money with Transwire is quick and effortless. The following steps will help you complete your payment:

  1. Register on the Transwire site and complete the self-onboarding process.
  2. Upload relevant documents for making a transaction under LRS.
  3. Initiate the transaction.
  4. Book the exchange rate and pay for the transaction.
  5. Download the SWIFT data or invoice.

Before initiating this process, you should prepare your remittance documents. You will need the following:

  • An Identity Card as per RBI norms
  • A PAN Card
  • A2 declaration

The experts at Transwire can help you understand the documentation process and provide support as you navigate it. The A2-cum-LRS document is an essential requirement under RBI guidelines. You can reach out to the Transwire team and take their assistance in preparing these documents.

The self-onboarding system on the Transwire website is available to you 24*7. However, the remittance process is only permissible during the business hours of your target location. You can speak to your Transwire agent to understand relevant exemptions for this.

Now that you know how easy this process is, it is time to initiate your overseas payment! Contact the Transwire team today to simplify your outward remittances.

How Can I Pay My College Fees Abroad From India?

College Fees Abroad From India

Today, Indian parents and their children are increasingly opting for studies abroad. Our modern world’s hyper-competitive environment demands individual preparedness. A global education can support such preparation, enabling students to secure an edge. The number of Indian students going abroad to pursue higher studies is projected to reach 1.8 million by 2024. While this growing trend underscores India’s rising potential on the global stage, it also complicates the issue of outward remittance. As thousands of Indian students pack their bags for foreign universities, they must contend with a fundamental problem: how to remit money for paying their course fees?

Education fees to abroad

International money transfers to send hefty amounts involve several complexities. Students must adhere to relevant norms while paying their college fees abroad. Let us explore the avenues open to them! One can pay institutional fees to a foreign university in four ways. The following section analyses these options for you.

Four Ways to Pay Fees to a Foreign University: Which is the Best Choice?

Forex Cards: A Forex card is a prepaid instrument: you load it with a chosen amount and swipe it at electronic terminals for making payments. It operates like a credit or debit card while paying for something. The difference is that the debit or reduction occurs from your Forex Card balance. A Forex Card’s USP is that it can load money in a foreign currency. For example, if you get a Forex Card with USD as your chosen currency, you can swipe the card at American terminals and pay a dollar amount. 

Forex Cards are ultra-convenient. Anyone can make quick local payments by swiping the card. Students and travelers use these fast and convenient cards to pay their everyday expenses. However, people do not prefer Forex Cards for large transactions like fee transfers. Fluctuations in exchange rates and exchange facilitation charges can also compound the costs of a Forex Card for making lump sum payments.

Payments via Banks: Banks provide money transfer facilities for students in international institutes. International transactions through banks can take two forms: demand drafts and SWIFT Wire Transfers. People use international demand drafts relatively less often. However, some colleges may insist on payments via demand drafts. Let’s break down both of these options in detail:

International Demand Drafts (D/Ds): An outward foreign exchange D/D involves two banks. Students or their family members can go to a bank and apply for a D/D along with a cheque. The bank will subtract a small amount as the D/D fee, and convert the rest into your chosen foreign currency for creating the D/D. The payer can transfer this D/D to the foreign university’s designated bank. After depositing the D/D, one can inform the institute, which can then collect the amount upon demand. This process is relevant for students when their institutes specifically request D/D payments. However, this method is time-consuming and complex, and few people opt for it.

Bank Transfers: A bank wire transfer is a trusted way of sending money to foreign institutes. A system called SWIFT (Society for Worldwide Interbank Telecommunications) connects most banking establishments around the globe. A bank can transmit a lumpsum amount to the payee’s bank account using the SWIFT mechanism. This process can take three to five business days. You can initiate a wire transfer online for some banks. For example, users can execute an SBI Wire Transfer by visiting the State Bank of India’s online banking portal. However, the online facilities offered by Indian banks are often slow and cumbersome, causing hassles for students. Furthermore, some banks may require students or their families to physically visit the bank branches to initiate an international transfer. Even though bank transfers are credible and safe, their inconvenient features often make them unsuitable for students.

Bank transfer is the traditional method for making foreign university fee payments. This method has long been widely acceptable in India. However, since the advent of fintech, it has become easier to make international transfers from the comfort of your home. Students can save the extensive time it takes to complete a bank transfer by switching to a smarter system. Bank transfers take much longer than the modern mechanisms for on-the-go money transfers. Hence, the rapid rise of fintech have worsened the appeal of bank wire payments.  

Money Transfer Services: How cool would it be to have money transfer apps handle your foreign university payments, right? If you are a student hoping for remittance apps to serve as your genie, you need to look no farther than money transfer providers. A money transfer service will help you send your fees abroad super-fast. You can send money on the go with a top-notch transfer service. They charge a small service fee and have clear rules about exchange rate considerations. There are many money transfer providers in the Indian market. However, you must find a credible company using cutting-edge technology to deliver this service. Users may onboard themselves on a money transfer company’s website and initiate the verification process. After that, you can take the help of their seamless technology to upload documents and initiate the payment as per prescribed rules.

Getting Started with Money Transfer with Transwire-The Trusted Money Transfer Company

Transwire’s team is expert at managing outward remittances for people transferring money abroad. Transwire is an authorized dealer (category II) approved by the Reserve Bank of India (RBI). The team can help you make foreign remittances for university fee payments according to the financial regulations applicable in India. 

The limit for fee transfers depends on your institute’s fee structure. The Foreign Exchange Management Act (FEMA) applies an upper limit of US$250,000 per person for foreign remittances. However, proper documentation and RBI approvals can help you navigate these limits as required for making your university fee payments. Our team will help you out with issues like this and more when you sign up for international money transfers! Transwire’s process involves four simple steps:

  • Register
  • Upload documents and complete verification
  • Book the exchange rate and complete the payment
  • Download your invoice

This stellar team ensures easy processing with simple documentation. Reach out to Transwire- the best money transfer company today to simplify your foreign fee payments!

 

Things To Consider While Buying Motor Insurance Online

Domestic money transfer

In 1888, a lady named Bertha Benz drove the first car. She took her sons on a 65-mile road trip in the Mercedes Benz Motorwagen. This marked the beginning of a new era in human history. Today we all depend on such motor vehicles to carry us around the globe.

Today we have come a long way. With the transition from petrol and gas to electric cars, the world is moving fast! However, automobiles are on the rise. Accidents are also following suit. A 51.8 % rise in accidents, was recorded from 2003-to 2012 in India.

For this reason, motor insurance has become essential. If you own a vehicle, having insurance safeguards you from damages. The best motor insurance online covers personal injury as well. However, you may be asking, is it safe? Yes, it is.

However, you’ll need to keep a few things in mind while choosing. Keep reading and find out how to choose the best!

Understanding Your Requirements

Vehicles are assets that belong to you. Thus, understanding the possible risks to your car is essential. Start by asking yourself questions like, is my area prone to flooding? Is it a busy zone where chances of accidents are high? Such questions help you find what you exactly need. Motor vehicle insurance covers a lot of areas. Even comprehensive cover plans have subsets. Choose wisely, and you’ll be appropriately protected!

Consider the Brand

When we talk about a brand, we don’t mean only named services. You need to select a firm with the right ideology. In today’s world of diverse businesses, transparency is essential. Thus, you should go for a customer-friendly service. Another good quality is legal accounting. A lot of online firms may often use illegal services. However, you needn’t get discouraged by this. Select insurance firms have legal accounting codes and standards that they follow. You can contact them for details on their operations!

Understanding Terminology

A big caveat of purchasing vehicle insurance online is terminology. Insurances are legal documents. Thus, the terminology may be difficult to comprehend. That’s why we recommend you complete your homework before purchasing a policy. Read up on claims, accidental loss, what is covered, to what extent it is covered, premiums, etc. once you know the relevance of these terms, you can purchase motor insurance online. The best provider in India will answer all your questions until you’re satisfied!

Know Insurance Alteration Terms

Insurance value, is determined by actuarial calculations. That’s why the initial value of your insurance may change over time. There are specific circumstances where you may need to intimate your insurer. Leading instances when intimation is required are changes to the body, engine, braking and suspension systems, interiors, wheels, paint, etc. Getting vehicle insurance online is a boon under such circumstances. You should quickly reach out to your service provider and intimate them. It saves you time and helps you make alterations to your policy online.

Compare Quotes Available

Purchasing motor insurance online is a fast process. However, ensuring you get a fair deal is essential. That’s why we recommend you compare quotes online. It helps you find the best price available. You can compare quotes to save yourself money. Use this method to your advantage while selecting a stellar service.

The Claim Settlement Ratio

When buying vehicle insurance online, checking claim settlement ratios is essential. The claim settlement ratio of a firm indicates how good they are. A high claim-settlement ratio points towards a great insurance services firm. Additionally, check the reviews of the firm. Reviews help understand how good a firm’s services are. It gives you an understanding of how well they can assist you with insurance!

But Why Get Insurance Online?

The world is changing around us. We have two ways to deal with it, either move ahead or fall behind. Online insurance-like any other online option-is cost-effective. Online insurance businesses don’t need office spaces, extensive infrastructure, or numerous employees. It helps them cut costs for their policies. Additionally, it’s convenient for you. Online service providers are easy to reach. You can contact customer service at any time, around the clock! Thus, get vehicle insurance online today!

Vehicles are an integral part of our life. As society moves towards progress, vehicles will be essential. The rate of life-threatening accidents may reduce in the future. However, the rate of minor accidents may remain the same. That’s why getting your vehicle insured is a good plan. If you’re looking for motor insurance online, Transcorp International Limited (TIL), is the best service provider.  This firm offers comprehensive services in FOREX, Travel, Insurance, etc. With experience and a stellar customer-oriented approach, TIL can get you the right insurance policy. Reach out to their customer care team today, to get the best vehicle insurance online and stay safe!