There are a number of ways to transfer funds to India, some better than others. The Indian expat community in the United States has more options than most; here are a few details of how to transfer funds to India from the USA.
Checks:
Very few Indians know that they can send money home by writing a personal or cashier’s check. The personal check is drawn on their normal current account, put in the mail and sent to India. The currency used in the check is US dollars. Upon receipt in India, the recipient has to deposit the check in their account at a local bank. The dollars are converted to rupees at the spot exchange rate that prevails at that moment. Although this method of sending money to India incurs no fees, it is not very convenient either as it can take up to three weeks for the check to clear and for the funds become available.
There are some banks that will give the money immediately, but they discount the amount. For those expats in the US that send money regularly, a number of checks can be sent, all appropriately post dated.
A cashier’s check, in dollars, can be sent in lieu of a personal check. As a cashier’s check is a guaranteed financial instrument, cashing is quick. The downside of a cashier’s check is that it will cost the sender $8-10 when getting the check from his bank in the US.
Rupee demand drafts:
The State Bank of India has branches in New York City and Chicago. You can purchase a demand draft from the bank in rupees and then mail it to the recipient. With so few branches this is a complicated option. If you live somewhere other than New York City or Chicago, you must send the bank a wire transfer or cashier’s check, they in turn will send the demand draft back to you for furtherance to India. As well as the costs associated with purchasing the draft, the timing is poor. It can take a considerable amount of time for the recipient to receive the money.
Money transfer services:
There are companies in the US that provide a money transfer service. This service is very fast, and you can arrange the transfer over the phone, charging the transfer to a credit card. Although the service is fast, the commission is high and the destinations in India are limited.
Online services:
Perhaps the simplest method to transfer funds to India is the use of an on-line service. It is a simple matter of registering on the site, choosing the method that you wish to use to pay for the transfer, and they send a demand draft in rupees to the recipient in India through their corresponding banks. The costs are low, and the exchange rates are often better than commercial banks.
