When it comes to repatriating large sums of money from India, it puts every NRI in a situation where he has to consider different obligations regarding monetary cross-transfer. Taxation, reliability and transfer timelines are a few things that influence these decisions.Personal finances have to be dealt with delicately and ensured that there is no loss during the due process of remittances. There are various options available in the marketplace today, be it via traditional banking or the modern ways of online transfers.
CompareRemit offers a platform that allows you to compare different players in the market and pick the best rates that suit your needs.
As a component of the liberalization scheme of the Reserve Bank of India, remitting funds from India has become relatively easier. Balances in NRE (Non-Resident External) accounts are freely repatriable. No formalities or requisite permissions are required for remittances abroad be it any amount. Funds in accounts are usually funds deposited from abroad or current income like interest or dividends on investments made through foreign funds.
Balances in NRO (Non-Resident Ordinary) accounts are subject to certain conditions. The remittance of USD 1 million per financial year from NRO accounts is allowed subject to certain procedural formalities. NRO account balances include income earned locally or certain capital account transactions. Form 15-CA and 15-CB need to be submitted before a remittance can go through.
Read more on difference between NRE and NRO account on CompareRemit.
The most sought after choice for remittances to the UK are banks. Banks are the most popular means of transferring money to the UK because:
● There is a high level of trust owing to the various government regulations.
● Familiarity and the comfort of knowing the neighborhood-friendly banker
There are two ways one could remit funds using banking services:
However, it is important to note that INR to GBP/GBP to INR exchange rates may not always be competitive. The transfer fees can be high and the charges, not always transparent.
Selection of Remittance Service Provider
Should you want to avoid remitting through banks, approaching a marketplace of money changers would be the next best option. A selection of remittance service providers should be made based on the following:-
● Transfer charges
● Speed of transfer
● Exchange rates
● Charges on the conversion of currency (INR to GBP)
● Freeze option on exchange rate while process requirements are completed
● Flexibility of payment options
Alternative Options for Remittance from India to UK
To select the right money transfer service one should keep the cost and time factors in mind. Convenience at a reasonable cost should be the mantra for selecting a suitable remittance service provider.