When an individual wishes to transfer money to India from USA, an international money transfer is often used. This is when funds are exchanged between two different parties in different countries. This method of funds transfer is done electronically and is often referred to as EFT, electronic funds transfer. When money is transferred from one country to another, there is a conversion of two currencies and fees that are imposed on the sender, and sometimes the recipient as well.
There are many rules and regulations that must be adhered to when making an international transfer of funds, and they vary from country to country.
Electronic funds transfers are happening many times every day. Funds go from one country to another regularly. This is not problematic as the actual exchange of currency happens without currency actually moving from one country to another. The transfers are electronic; it simply allows for debits and credits to be made from one account to the other without any movement of actual cash.
When an individual wants to transfer money to India from USA, he first needs to establish what method to employ. There are a number of services that can be tapped to accomplish the transfer:
- Bank transfers
- Wire transfers
- On-line services
- Remittance agencies
Some options, bank transfers and wire transfers, for example, are available to those people who have access to these facilities. On-line services are available to those with Internet service; remittance agents are available to people in larger cities throughout the country, but rarely small towns.
The way in which the transfer is made affects how the recipient can get the funds. If the transfer is done bank to bank, the funds can be deposited directly into the recipients account. From the account, the funds can be withdrawn in cash or a check can be requested. When wire transfers are made, the recipient usually has to go to the local office of the transmitter to receive the cash.
There are legal issues that must be taken into account when transferring money to someone in another country. It is often much more than just the exchange rate and fees that the participants in the transaction need to concern themselves with. The regulations vary greatly from country to country. When a person wants to transfer money to India from USA there are no impediments, however, there are situations where it is perfectly legal to send money from country “A” to country “B,” but it is illegal for the recipient in country “B” to accept money from country “A.”
Another concern is the currency that will be received. In some places if the sender sends dollars, the recipient will receive dollars. In other places, the recipient receives the equivalent in local currency, often at very poor rates of exchange.
