Remittances from non resident Indians (NRIs) have bailed the Indian
economy out of the doldrums to some extent in the past, and the
government's fiscal policies in the 1990s have encouraged a surge
of funds to take the figure to USD 180.047 billion, for the week
ended February 2, 2007.
India receives the highest remittance in the world from Indians
overseas, with the USA and Saudi Arabia being the major source
of dollar transfers. About 35-40 % of remittances into India are
from the US.
States like Kerala have been able to tide over an economic crisis
only on the strength of the money transfer from its people working
abroad. It is no wonder then that states and commercial banks
and financial institutions have generous schemes to maintain the
current flow of funds.
Commercial banks or authorized dealers like ICICI, HDFC, Citibank,
and money exchange service providers like remit2india, Western
Union, Cash2india have hassle free products to make remittance
What are the Instruments through which an NRI is able
to Send Money to India?
Personal Cheques - are the easiest way
to transfer money, but for the receiver, it is cumbersome to
get these converted to the local currency. Besides, cheques
are also not a safe option in case they get misplaced.
Cashier's Cheque or Pay order - this
ensures that the sender is not short of funds in his account,
but then again, it is not received by the benefactor in his
local currency, and has the same drawbacks as a personal cheque.
Wire Transfers - It is the fastest and
safest method, sent through any bank branch. Some sending banks
may require the receiver to have an account with them, but this
is not necessary in most banks.
Money exchange service providers operating
globally also offer very competitive services for money transfers.