According to a study by the Reserve Bank of India, NRI’s predominantly use electronic wires and Swift for the remittances from Abroad to India. Speed and efficiency of transfer are uppermost on the mind of overseas Indians, according to the study.
SWIFT code is like routing number, Banks around the world use SWIFT messages ( Wire Transfer ) to notify banks in other countries that a payment has been made. Most international transfers are executed through SWIFT. Each financial institution has a SWIFT code which is commonly used to identify the banks involved in an international wire transfer.
Electronic wires/Swift is the most expedient method for transferring funds between bank accounts, also it is the costliest means of transferring of funds compared with other modes of transfer. Swift is used frequently as it is the most time-efficient means of remitting money. Average time taken for SWIFT varies mostly 1 to 3 days.
The majority of international interbank messages use the SWIFT network. Each financial institution has a Swift code which is commonly used to identify the banks involved in an international wire transfer.
Other modes used by NRI’s are drafts, cheques, debit/ credit cards, money orders and direct transfers to bank accounts. Cheques, drafts and money orders (now you can send online money order ) are cost-effective but it will take upto 30 days ( exchange rate can fluctuate at the time of converting ).
Western Union, MoneyGram, XOOM are service providers who send international money transfers. These companies are convenient because neither you nor the receiver needs to have a bank account.
Alternatively, online remittance transfer service provided by banks (ICICI Money2India, SBI Express Remit, Remit2India, etc) are both cost-effective and less time-consuming.
- Wire Transfer/SWIFT – It is the quickest way to transfer money, usually more expensive compared to other means.
- Cheques, drafts and money orders – More time-consuming.
- Online remittance transfer provided by banks – Less expensive than wire and also less time-consuming than Cheques or drafts.
- Western Union, MoneyGram – Convenient and Quick, but more expensive than using a Wire.
Make the choice based on your needs, personally you can save money by using Online remittance services provided by banks.