The current climate for sending money to India is probably the best there has ever been. USD to INR conversion rates have been close to 10-year highs for months. New technologies and partnerships are set to slash conversion and transfer fees. Per capita remittances are on the rise. For the average Indian expat in the US, things are getting really interesting. This article takes a look at many of the factors that come into play when pairing your money-sending channel with your reason for sending it.
Why Expats Send Money to India
According to World Bank estimates based on IMF data, India received $79 billion in remittances in 2018. The reasons for sending money are as versatile as the outlets for spending it. Nevertheless, most remittances can be broadly categorized into three headings, namely family, business and investment.
Family is the best known application of remittance money worldwide and in India. Paying bills, financing kids’ education, parents’ healthcare, buying home appliances and other household expenses are topmost on the priority list. Every remittance transfer contributes to raising the standards of living back home.
Business is an important occupation for those Indian expats who run an enterprise in India remotely or by proxy. Remittances to India are projected to see double-digit growth this year, a large portion of which will be fuelled by business. Payroll, raw materials, marketing, sales, government fees and duties are just some of the expenses incurred in running businesses, for which entrepreneurial expats send money to India.
Investment in India is something most Indian expats consider after the family’s needs have been well satisfied. It is a natural choice for those expats who plan to repatriate to India upon retirement. There is an endless list of attractive Indian investment avenues such as long-term bank deposits, savings certificates, mutual funds, stocks, residential property, launching a bar, agricultural land and commercial real estate. The Government of India recognizes that Non Resident Indians (NRIs) bring in much-needed foreign money. Consequently, NRIs enjoy many tax benefits and can often get excellent rates on deposits and other types of investments.
Factors to Consider
Some expenses require regular remittance transfers, usually monthly. These include family support, bill payments, payroll, installment payments on assets, and the like. The primary considerations for such transfers are ease, speed, reliability and cost-effectiveness. Some money transfer channels (and governments) impose daily and monthly upper limits to the amount of remittances. The limits are usually high enough for the average expat’s needs. Ria caps monthly remits at a generous $7,999.
Other expenses such as the purchase of a large asset or an investment in real estate require bigger one-time transfers. For such transactions speed is generally less important than transaction cost.
Many families also have additional considerations, such as elderly parents who often suffer from limited mobility and have limited skill in the use of electronic devices. The need to receive money with minimal recipient intervention can be even more pressing in remote rural areas of India where access to formal banking channels is limited.
Ria Money Transfer
All of these considerations are met easily when using Ria Money Transfer for your remittance needs. It is a fast, safe and reliable service, with end to end tracking at your fingertips. Ria’s transfer fees are the most competitive in the industry and are set to be reduced even further, thanks to some very innovative technology in the pipeline. The net output of each transaction can be calculated in advance using Ria’s online price calculator. This gives the sender complete control and predictability over the entire transaction. Ria also makes it easy for elderly parents and other dependents to collect money in remote areas. Ria’s global network includes 369,000 agent locations in 149 countries where recipients can easily collect cash with little more than a government issued photo ID.
It is no surprise then, that Ria processes millions of transfers every month, and is fast-gaining ground. Already one of the world’s largest money transfer services, Ria is quickly becoming the preferred choice of Indian expats living in the US.
