According to the World Bank report, since 2004, remittances to India have increased by as much as 33%. In 2006, $ 24.6 billion was remitted to India. Over the years, the strengthening of the Indian market has managed to win the trust of foreign investors to invest in India. This has really helped the Indian economy to survive in the recession period. To facilitate foreign investors, the Government of India replaced the Foreign Exchange Control Act (FERA) with the Foreign Exchange Management Act (FEMA) in 2000. FEMA offers more relaxation compared to FERA.
Folk remittance methods, India
There are different types of methods to send remittances to India. Reliable and popular ways people abroad send money to India include:
Bank transfer: With this method, you can send money in two days. The presence of bank codes and routing codes in this method makes it safe.
Payment orders:
These money orders are provided by banks, through which you can send money to your loved ones in India. You can easily buy one from your local bank and mail it in. This is a safe method of sending money, but it takes time.
Checks in foreign currency:
This is the simplest process of sending remittances to India. You just have to write a check and deliver it to the recipient. The recipient can collect it from their bank. However, the whole process can take more than 20 days. You can send the check via courier services overnight to reduce the time period.
Drafts in foreign currency:
This method is similar to sending a money order. Typically, this is what entrepreneurs prefer. It is a time consuming but safe method. On average, money orders in foreign currency take around 20 days to arrive.
Remittance card:
This is a similar debit card. You can buy a card on behalf of the recipient. The recipient or family member can use this as an ATM card and a shopping card. All you have to do is recharge it regularly. It is the least time consuming method of sending money to India.
Direct deposit:
This method is good for those who have to send money home regularly. In this method, you allow an Indian bank to withdraw money from your foreign bank account. The recipient can collect that money from the bank.
Among the various options for sending remittances to India, you should always choose the one that best suits your needs.