According to the latest World Bank remittance report it has been concluded that the there has been an increase of 33% in remittance to India since 2004. The amount of remittance to India approximately was $24.6 billion in 2006. India is financially strengthening and this has increased the interest of the foreign investors towards India. This has help in the Indian economy to withstand the severe recession period faced by the world. The probable reason of these figures was a result of the replacement of Foreign Exchange Control Act (FERA) with Foreign Exchange Management Act (FEMA) in 2000 by the Indian government.
FEMA was a more lenient act as compared to FERA and this increased the interest of the foreign investors. There are popular methods of remittance to India which provides a secure transfer, some of them are:
- Remittance Card: It works like a debit card and very fast. The person can get it made on the behalf of the recipient and the recipient can use it like a debit card for withdrawing money or shopping. It needs to be recharged regularly.
- Money Orders: The most traditional way of sending money to India to your family and loved ones. This method is in use since many decades; it’s a bit longer time then other ways but is secure and widely used. All you need to do is buy your currency from any local bank and send it through mail. also see how to Send money orders online in India.
- Wire Transfer: The fastest method of money remittance, just in 2-3 days money reaches your loved ones. Unique banking and routing codes are used and money is transferred from one bank to another very safely.
- Foreign Currency Cheques: The easiest way of sending money, just a normal cheque get cleared, similarly a foreign currency cheque can be issued to anyone and can get cleared from any local bank.
- Foreign Currency Drafts: Foreign Currency Drafts work in the same way as the cheque works, the only time required is the clearance time and the time taken by the draft to the person in India.
- Direct Deposit: In this method any of the Indian banks can use the account of the payer for withdrawing money. This method is used when money has to be transferred regularly.
Guest Post by Idania silvia