There are many reasons why an Indian sends money to his or her motherland. The motives are numerous- it may be for immediate family members, for a close relative's birthday, for an emergency or family bereavement or illness and many other reasons. This indicates whatever the reasons; almost all the expatriate Indians are searching for uncomplicated, secured and cheaper money transfer solutions. It's apparent that the conventional money transfer options seem highly inadequate to meet the ever growing demands and expectations of Indians abroad.
So, one needs to examine what contemporary money transfer options available meeting the requirements and expectations of Non Resident Indian (NRI).
Non-resident Indian and Person of Indian Origin
A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for employment, residence, education or any other purpose. A Person of Indian Origin (PIO) is a person of Indian origin or ancestry but who is not a citizen of India and is the citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India or other states.
Traditional Money Transfer Methods
Traditional money transfer methods such as Credit Cards, Bank Drafts, Wire transfers and Cheques have been there for many decades. Such methods seemed to be cumbersome, extremely slow and uneconomical and in some remote cases unreliable. Additionally, credit cards can be a faster method for sending money, however, owing to strict financial regulations and practices in India, the beneficiary may face lot of red tape before obtaining the money. Wire transfers are reliable but extremely slow and costly if large sums of money are involved. Similarly, the bank drafts and cheques take a longer period to reach the beneficiary; in some cases the recipient may not receive them at all.
Hence, sending money to India is inundated with many issues such as long delays, high transfer costs, misplacements, numerous unnecessary visits to local agents, and theft. These issues can subject the sender or the recipient into highly anxious and irritable situations. Therefore, it's no surprise many NRIs are constantly looking of money transfer methods that are faster, cheaper and reliable and less cumbersome.
With the advent of Internet, the online money transfer has become increasingly popular among expatriate Indians. There are many online money transfer websites available across globe including India. Today, any expatriate Indian can remit in any currency denomination from any part of the globe. These online money transfer web services have really made simple and user-friendly for an Indian to send money to his kith and kin or for business purpose. It's just a one click away from your computer.
How do these online money transfer systems work? All you have to do is to register an account with the online money Transfer Company or website like PayPal, Moneybookers, MoneyGram, Western Union, Xoom, Ikobo, and Cash2India. Once you register, you need to input the details of the transaction you intend to do. For example, the name and address of the recipient or the beneficiary and amount of funds that you want to transfer. Then you can upload funds using either your credit card or your bank account and click submit button. Once the online money transfer web site approves your transaction, in matter of minutes, the money directly deposited to the recipient's account in India. Alternatively, the company may send the money to the closest branch office or franchise to collect cash in India.