{"id":33,"date":"2017-02-18T20:57:16","date_gmt":"2017-02-18T20:57:16","guid":{"rendered":"http:\/\/blog.coziie.com\/exchange-rates\/?p=33"},"modified":"2017-03-13T22:21:32","modified_gmt":"2017-03-14T05:21:32","slug":"money-transfer-india-works","status":"publish","type":"post","link":"http:\/\/blog.coziie.com\/remittance\/33\/money-transfer-india-works\/","title":{"rendered":"How money transfer to India works?"},"content":{"rendered":"

Are you an Indian (desi) who recently travelled to USA, UAE, Saudi Arabia, UK, etc for\u00a0your work assignment? If so then you must be wondering what is remittance, how it works and how can I use to transfer money to India\u00a0then continue reading.<\/p>\n

What is Remittance?<\/h2>\n

Remittance is a money transfer transaction initiated by a foreign worker to his family\/friends back in his home country. In simple terms\u00a0it is an international money transfer sent\u00a0by a foreign worker back to his home country for personal use.<\/p>\n

Indians travel all over the\u00a0world for better opportunities\u00a0and while they are in the foreign countries, all the money they send back to India for personal use is considered as Remittance. For example, a H1B professional working in USA can\u00a0transfer money\u00a0to India to support his family members or pay his bills using remittance service.<\/p>\n

So the international money transfers between Individuals are called as Remittance and there are dozens of remittance service providers in countries like USA, UK that offer services to transfer money to India. \u00a0And most of these remittance service providers does not allow transferring money for business purpose; you can’t use\u00a0remittance services to fund a business or pay salaries of your employees in home country. More details about business transfers in another blog post.<\/p>\n

Remittance service allows a Indian software engineer working in USA to\u00a0transfer money to India for personal use like pay his bills and supporting family members<\/i><\/strong><\/p><\/blockquote>\n

How remittance works?<\/h2>\n

Remitting money to India\u00a0is a simple process, especially from countries like USA and UK where there is a lot of competition between service providers. A typical remittance process for a first time transfers\u00a0generally\u00a0follows these steps<\/p>\n

    \n
  1. Identify the money transfer service that\u00a0works best<\/li>\n
  2. Sign up online with money transfer service.<\/li>\n
  3. Enter receivers information like name, address, Indian bank account details, etc<\/li>\n
  4. Enter sender’s foreign bank account details to fund the money transfer request<\/li>\n
  5. Enter the amount of money to transfer<\/li>\n
  6. Review\u00a0 information provided and submit the request\u00a0to initiate money transfer.<\/li>\n
  7. Ta-da!! Money should be transferred from your foreign bank account to receivers Indian bank account in few hours or days depending on the money transfer service you used.<\/li>\n<\/ol>\n

    Aren’t these steps fairly simple and straightforward? Thanks to the innovations of\u00a0several startups and fintech companies, transferring\u00a0money across the globe is as simple as a\u00a0domestic online bank transactions.<\/p>\n

    Remittance to India is huge!<\/h2>\n

    Remittance to India has been in growing rapidly since 1990 and it is playing a significant role helping India’s forex reserves. Based on one\u00a0of the recent estimates, approximately 25 millions (2.5 crores) of Indians live\/work outside India and they transferred 68.91 billion US dollars between\u00a02014-2015. Also India is the largest receiver of Remittance money with a lion share of 12% of global remittance transactions.<\/p>\n

    <\/p>\n

     <\/p>\n

    Remittances earn developing nations three times as much as they are sent in aid<\/em><\/strong><\/p><\/blockquote>\n

    60% Remittance\u00a0comes from 2\u00a0countries<\/h2>\n

    Indian migrants living in West Asia and North America are the biggest source of remittance to India as they account 60% of total remittance. While Indian\u00a0workers in West Asia sends 30.8% of total foreign remittances, North American counterparts send 29.4% of remittance.<\/p>\n

    According to this\u00a0pew report<\/a> from 2015 \u00a0UAE, USA and Saudi Arabia are the top 3 sources, while Pakistan and United Kingdom stood at 4th and 7th places.\u00a0Similar to top 3 sources accounting to majority of remittance to India, 40% of this money flows into Kerala, Tamil Nadu, Punjab and Uttar Pradesh.<\/p>\n

    Worldwide\u00a0Remittance Flow<\/h2>\n

    The nice folks at\u00a0TagesWoche<\/a>\u00a0created a great visualization of Remittance history and its mighty raise. Explore this interactive visual for great insights.<\/p>\n