Sending money back to India from the USA can be a common practice for NRI’s. However, the process of international money transfers can be complex, and it can be overwhelming to understand the various financial terms involved.
Understanding terms like exchange rates, transfer fees, remittance, etc, can help you make informed decisions and save you money. In this article, we will help you understand most common money transfer terms, including their definitions and explanations.
So, whether you’re an overseas worker, a student studying abroad, a business owner, or someone who is contemplating moving to the USA, read on to learn more about the key terms you need to know for your USA to India money transfer.
Remittance refers to the transfer of money from one country to another. It can be carried out through various means, such as wire transfer, bank draft, money order, or online transfer.
Remittance plays a significant role in the economy of many developing countries, as it provides a major source of foreign exchange earnings and helps to support the livelihoods of millions of people.
The exchange rate is the rate at which one currency can be exchanged for another. For instance, in case of USA to India money transfer, you need to know the exchange rate of the USD with respect to the INR. Exchange rates can fluctuate based on various economic and political factors, including inflation, interest rates, geopolitical events, and government policies.
Transfer fees refers to the fees charged by a money transfer service for transferring funds from one location to another. The fees vary depending on the amount of money being transferred and the destination country. Transfer fees can be a fixed amount, or a percentage of the total amount being transferred.
It is important to compare transfer fees across different service providers to ensure that you are getting the best deal. Additionally, you should also consider other factors such as exchange rates and delivery times.
For instance, ICICI Bank’s Money2India remittance service ensures the money you transfer from the USA reaches the person in India immediately within 3-4 hours. You can also be assured that you will get maximum savings as they have the lowest transfer fees. There is zero transfer fee if you remit $1,000 or more in a single transaction.
A transfer limit refers to the maximum amount of money that can be sent through a specific remittance service. This limit may be set by the remittance provider, or the sender’s bank.
During your USA to India money transfer, you can transfer up to $300,000 in a single transaction with Money2India.
The person or entity who receives the money from the sender in a money transfer transaction.
The beneficiary may be an individual, such as a family member or friend, who is receiving financial support from the sender, or it could be an organization to whom the sender is paying for goods or services.
A wire transfer is a type of electronic transfer of funds between bank accounts, often used for domestic and international money transfers.
To initiate a wire transfer, the sender must provide their bank with the recipient’s bank account details, including the bank name, routing number or SWIFT code, and account number. The sender’s bank then communicates with the recipient’s bank to facilitate the transfer of funds.
In case of transferring funds through Money2India, you can send money from any bank in USA to any bank in India.
Understanding the terminology and concepts related to money transfers can help you make more informed decisions when it comes to choosing a remittance service.