USD INR ₹ 83.32
GBP INR ₹ 106.05
CAD INR ₹ 60.79
News

How Remittances and Payment Channels Affect India’s Economy

Updated on September 05, 2017 11:27 am
USD compared to Indian Rupee

In recent years, international remittances have grown into a trillion dollar industry and as the cross border remittance industry continues to grow, so does the domestic payments industry. This increasing trend is occurring in all major international remittance receiving countries, especially in South Asian countries such as India, Bangladesh, Pakistan, the Philippines, Indonesia and Vietnam. 

In most of the cases when a cross border remittance comes in, it ends its journey through the domestic payments channels. For example, let us assume, Mr. X sends money from a foreign country to his mother. He normally chooses the most convenient method for the Cash-In and the most convenient method for Cash-Out. From the sending side, the most convenient method is generally an online money transfer. At the receiving end, it is generally a deposit into the bank account of the beneficiary (in this case the mother of the sender). In the above case the domestic payments methods are first used to park the funds into the wallet or online account of the sender. Funds are then delivered to the bank account of the intermediary bank and are transferred into the bank account of the beneficiary thereafter. This push from the bank in-between and the beneficiary bank also forms part of the domestic payment systems mechanism, which is primarily IMPS or NEFT or RTGS. This is part dependent on the amount of money sent. What we see here is that the increase in volumes of international remittance also injects funds into the domestic payments basket.

The way the payment instruments for remittances work is still evolving. Under the NEFT (National Electronic Fund Transfer) format, the payment systems work under batch processing mode. The NEFT window is open Monday through Friday, 8:00 AM to 7:00 PM hourly cycle. On alternate Saturdays, it works like a normal day as above. This mode is closed on Sundays, as well as 2nd and 4th Saturdays. This system does not have any transaction limit constraints and the banks settle between themselves at the end of the day. The RTGS ( Real Time Gross Settlement) works even faster and the funds are settled between banks on real time basis, however, the minimum amount for such transfers is INR 200,000. The IMPS (Immediate Payment Service) is a 24 X 7 service, that can be accessed via smartphone at any time. This has revolutionized the payments structure of India and is one of the most advanced payments systems in the world, however, this also has a transaction limit and of INR 200,000 per transaction.

The funds can be received in a bank account or any other mode. Some other modes can be Remittance Cards or a Wallet. A wallet can be an online wallet or a mobile wallet. The RBI is progressively working on making the wallets or cards available to cash payout players in India, under the cash payout scheme, Money Transfer Service Scheme (MTSS).

 42798 views
Rate article:
(1.0)
 
 
Money Transfer FAQ's
Related Articles
Fast Money Transfer
Understanding Money Transfer Speeds

Sending money internationally is a vital task for many immigrants supporting their families back home. When finding the best money transfer service to send money with, you might be tempted to pick your remittance service provider based on whoever has the highest exchange rate. However, it is important that you look at more than one factor. Money transfer fees, the corridors the money transfer service offers, promotional offers, and money transfer speeds are just some of the factors you should look into before you decide on the best money transfer service for you. In this article, we will mainly be covering money transfer speeds. While the process seems straightforward, understanding transfer speeds is essential to ensure timely and efficient transactions. This article will delve into why money transfer services can't instantly transfer money, the factors influencing transfer speeds, and how to compare and choose the right remittance service using CompareRemit.Why Can’t Money Transfers Be Instant?Money transfers involve multiple steps and parties, which can cause the money transfer process to take some time. Here are some reasons why transfers aren’t always instant:Transfer Method: Bank transfers, wire transfers, and online money transfer services all have different processing times. Online services often provide the fastest way to send money.Payment Method: How you fund the transfer (bank account, credit card, debit card) can affect speed. Transfers funded by credit cards might be quicker but could incur higher fees.Transfer Amount: Larger transfers may undergo more rigorous checks, resulting in slower processing times compared to smaller amounts.Service Provider: Different remittance companies offer varying processing times. Some prioritize speed, while others focus on cost-effectiveness. It's essential to research and compare the transfer speeds of different providers.Verification Processes: Financial institutions must verify the sender’s and recipient’s information to prevent fraud and comply with regulations. This verification can take time.Bank Processing Times: Banks typically have set processing times, often limited to business hours and excluding weekends and holidays, which can delay transfers.Regulatory Compliance: Different countries have various regulations to prevent money laundering and illegal activities. Ensuring compliance with these regulations adds time to the transfer process.Intermediary Banks: Transfers that involve multiple banks or financial intermediaries can take longer as each institution has its processing times and procedures.Destination Country: The country to which you are sending money also plays a role. Transfers to countries with advanced financial infrastructure tend to be faster. For instance, sending money to India might be quicker compared to less developed regions.Time of Transfer: The timing of initiating the transfer also plays a role. Transfers initiated during business hours on weekdays tend to process faster than those initiated on weekends or holidays.Anti-Fraud Measures: To protect against fraudulent activities, money transfer companies implement rigorous security measures. While essential, these measures can slow down the processing of transactions.Preparing for Money Transfer SpeedsTo ensure your money reaches its destination as quickly as possible, consider the following tips:Plan Ahead: If you know you need to send money by a specific date, plan the transfer well in advance to avoid any last-minute delays.Verify Recipient Information: Ensure all recipient details are accurate to prevent any issues that might delay the transfer.Choose the Right Service: Use CompareRemit to evaluate different services based on their transfer speeds, fees, and reliability. This tool allows you to see all the factors that will influence your transfer experience.Consider Time Zones: Be mindful of time zones, as transfers initiated during business hours in the recipient’s country may be processed faster.Find the Fastest Way to Send Money Internationally with CompareRemitWhen selecting a remittance service, prioritize your needs and preferences. Getting the most for your money is important, but the highest exchange rate is not always the best answer. Getting a high exchange rate but having your money recipient wait days or even weeks to receive their money is not the best deal. Use CompareRemit's comparison tool to identify the fastest way to send money internationally. Compare the processing times offered by different providers to find the fastest way to send money abroad.

USD to INR Forecast 2024
USD to INR Forecast 2024

The year 2022 concluded with the Indian Rupee hitting an all-time low against the US Dollar. The COVID-19 pandemic significantly impacted global economies, leading to the devaluation of the Indian Rupee. Throughout the pandemic, the rate experienced a gradual decline in value, setting the stage for potential recovery in 2023.The US Dollar to Indian Rupee exchange rate did, in fact, see that recovery over the year’s performance. 2023 ended on a high, with the exchange rate averaging at $1 = ₹83.249 in December 2023.As we are well into 2024, it is crucial to begin looking to the future and understand what the predictions for the year’s rates are. If you are planning to send money to India this year, this is particularly important as it will help you understand what is the best time to send your money and take advantage of an opportune rate.  Navigating the USD to INR exchange rate landscape requires understanding market dynamics and leveraging available resources to make informed decisions in 2024 and beyond. That is why we have accumulated expert forecasts and predictions all in one place for you. In this guide, we will be covering the Indian rupee's current outlook, what's driving the value of USD, the USD to INR forecast, and much more.The US Dollar-Indian Rupee Performance in 2023As we delve into the USD to INR forecast for 2024, let's rewind and understand the context.2023 had an unpromising start, leaving many wondering whether the value of the Rupee was going to continue to decline despite the aftershocks of the pandemic having pretty much worn off. On January 20th, 2023, the USD to INR exchange rate reached its lowest point for the year. However, as the year progressed, 2023 witnessed a slow but steady increase in the exchange rate compared to 2022. The USD/INR rate experienced a positive shift of +0.62% in 2023, indicating an increase in the value of the US Dollar against the Indian Rupee. The year's peak rate was recorded at 83.442 INR on September 19, 2023, with an average exchange rate of 1 US Dollar = 82.579 Indian Rupee for the year.Various factors contributed to the strength of the USD against the INR and the subsequent exchange rate fluctuations. Economic indicators, such as GDP growth rates, inflation, and employment data, played a significant role. Additionally, geopolitical events, trade policies, and interest rate differentials between the US and India influenced investor sentiment and currency valuations.What Factors Contribute to the US Dollar’s Strength & Exchange Rate Fluctuations?Various factors contributed to the strength of the USD against the INR and the subsequent exchange rate fluctuations. Economic indicators, such as GDP growth rates, inflation, and employment data, played a significant role. Additionally, geopolitical events, trade policies, and interest rate differentials between the US and India influenced investor sentiment and currency valuations.The aftermath of the pandemic boosted investor confidence in the robust US economy, while economic indicators, trade imbalances, and geopolitical events played their part in shaping the fluctuations of the USD to INR exchange rate in 2023.Will the Indian Rupee Get Stronger Against the US Dollar in 2024?Current market sentiment indicates a bullish outlook for the USD to INR exchange rate. That means the overall market-in favor of the United States-is expected to go higher, meaning that the value of the US Dollar is expected to increase. The US Dollar is projected to experience a 1.64% rise in the next year, with the USD to INR rate anticipated to reach around ₹ 84.82. We have already begun to see the rate reach closer to that rate as the yearly average so far has been around ₹ 83.17.[Source: Coincodex]This is good news for those hoping to send money to India in 2024 as the rate leans more favorably for the US Dollar. It is, however, unfortunate news for those wanting to convert their Indian Rupee to travel to the United States, study in the USA, etc. 2024 USD to INR ForecastAs we peer into the crystal ball for 2024, as stated before, the current sentiment in the USD to INR market is currently estimated to be bullish. The 14-day RSI reading is 53.64. Forecasts suggest an upward trajectory for the USD to INR exchange rate in the coming months. Projections for the next six months indicate a potential 1.42% increase, bringing the exchange rate to ₹ 84.64. Looking further into the future, as stated earlier, the one-year forecast anticipates a 1.64% rise, resulting in a rate of ₹ 84.82.2024 Monthly USD/INR ForecastThis all can be very overwhelming for those of us unfamiliar with how to navigate market fluctuations or even interpret terminology used by experts when discussing the exchange rate and market health. That is why we are providing you with a monthly breakdown with the predicted exchange rates for each month in 2024, that way you can make the best decision for when you would like to send money from the US to India or send money from India to the US. The following INR USD forecasts are based on information that is currently available.  Depending on the extent to which key factors, such as interest rates and central bank policy match market expectations, the forecasts could be changed and turn out to be false. Please make sure to always conduct your own research and remember that future results don't depend on past performance.Dollar to Rupee forecast February 2024: At the beginning 83.06 Rupees. At the end of the month 82.81, the change for February -0.3%. Maximum 84.07, minimum 81.53. The average exchange rate is 82.87.Dollar to Rupee forecast March 2024: At the beginning 82.81 Rupees. At the end of the month 82.78, the change for March 0.0%. Maximum 84.02, minimum 81.31. The average exchange rate is 82.73.Dollar to Rupee forecast April 2024: At the beginning 82.78 Rupees. At the end of the month 82.67, the change for April -0.1%. Maximum 83.91, minimum 81.43. The average exchange rate is 82.70.Dollar to Rupee forecast May 2024: At the beginning 82.67 Rupees. At the end of the month 82.53, the change for May -0.2%. Maximum 83.77, minimum 81.29. The average exchange rate is 82.57.Dollar to Rupee forecast June 2024: At the beginning 82.53 Rupees. At the end of the month 82.61, the change for June 0.1%. Maximum 83.85, minimum 81.37. The average exchange rate is  82.59.Dollar to Rupee forecast July 2024: At the beginning 82.61 Rupees. At the end of the month 82.82, the change for July 0.3%. Maximum 84.06, minimum 81.58. The average exchange rate is 82.77.Dollar to Rupee forecast August 2024: At the beginning 82.82 Rupees. At the end of the month 83.16, the change for August 0.4%. Maximum 84.41, minimum 81.91. The average exchange rate is 83.08.Dollar to Rupee forecast September 2024: At the beginning 83.16 Rupees. At the end of the month 83.63, the change for September 0.6%. Maximum 84.88, minimum 82.38. The average exchange rate is 83.51.Dollar to Rupee forecast October 2024: At the beginning 83.63 Rupees. At the end of the month 83.82, the change for October 0.2%. Maximum 85.08, minimum 82.56. The average exchange rate is 83.77.Dollar to Rupee November 2024: At the beginning 83.82 Rupees. At the end of the month 83.20, the change for November -0.7%. Maximum 84.45, minimum 81.95. The average exchange rate is 83.36.Dollar to Rupee December 2024: At the beginning 83.20 Rupees. At the end of the month 84.15, the change for December 1.1%. Maximum 85.41, minimum 82.89. The average exchange rate is 83.91.Sending Money from the US to India in 2024For those looking to send money from the US to India in 2024, numerous options and companies offer highly competitive rates. Some even provide first-time rates higher than the economic USD to INR exchange rate. Utilizing a comparison tool can help individuals find the best way to send money, ensuring they get the most favorable rates for their transactions. Use the CompareRemit comparison tool to find the best USD to INR exchange rate. How to Get the Best USD to INR Rate in 2024Compare and contrast the top money transfer companies on the market to find the best USD to INR exchange rate using our comparison tool.  Protip: Many companies offer a first-time user rate that is significantly better than their regular rate. Make sure you utilize those offers to get the best exchange rate that you can. ConclusionAs the USD to INR forecast for 2024 unfolds, staying informed about currency dynamics is essential for making informed financial decisions. Whether conducting international transactions for business or personal purposes, understanding exchange rate trends and exploring efficient remittance methods empower individuals to navigate the currency landscape with confidence and foresight.However, do keep in mind that the forecasts are often inaccurate and subject to correction. The USD to INR forecasts are based on the rate of inflation, central bank policies, and the health of the US and Indian economies.Send money home to India today while the USD to INR exchange rate is in your favor! Compare rates and providers by using our online comparison tool.

Prevent Money Fraud
Keeping Your Money Safe: How to Protect Yourself from Remittance Fraud

In today's interconnected world, sending money back home to loved ones is easier than ever. However, along with the convenience comes the risk of falling victim to remittance fraud. As immigrants, it's crucial to stay informed about common scams and fraud schemes targeting remittance senders and recipients. In this article, we'll explore the different types of remittance fraud and provide expert tips on how to protect yourself and your hard-earned money.How Money Gets TransferredTo understand where your remittance can go wrong, you need to understand how the ideal remittance process should work. When you use a remittance service, the process typically involves transferring funds from your bank or online account to the recipient's account. This can be done through various methods such as bank transfers, online platforms, or mobile apps. While these methods are generally safe, it's essential to be aware of potential risks and take precautions to safeguard your transactions.Types of Remittance Fraud: Identifying the ThreatImpersonation Scams: Fraudsters pose as remittance agents or family members in need of urgent financial assistance. For example, someone might impersonate a relative and claim to need money urgently for medical expenses.Wire Transfer Scams: Victims are coerced into sending money under false pretenses, such as lottery winnings or fake job offers. For instance, individuals may receive emails claiming they've won a prize but need to pay a fee to claim it.Phishing Emails: Fraudsters send emails posing as legitimate remittance providers, requesting personal or financial information. These emails often contain links to fake websites designed to steal sensitive data.Social Engineering: Fraudsters manipulate individuals into divulging confidential information through persuasive tactics. For example, they may call pretending to be a remittance agent and request login credentials under the guise of resolving an issue with the recipient's account.Tips to Protect Yourself and Your MoneySpotting remittance fraud requires vigilance and awareness of common red flags. Be wary of unsolicited communication requesting personal or financial information, especially via email or phone. Legitimate remittance providers will never ask for sensitive details out of the blue. There are some easy steps you can take to make sure you are staying safe: Verify Recipients: Always confirm the identity of the recipient before sending money, especially if the request seems unusual or urgent.Exercise Caution Online: Be wary of unsolicited communications requesting personal or financial information. Legitimate remittance providers will never ask for sensitive details out of the blue.Choose Secure Payment Methods: Opt for reputable remittance services that employ robust encryption protocols and verification measures to protect transactions.Stay Informed: Educate yourself about common fraud tactics and remain vigilant when conducting financial transactions, especially online.To mitigate the risk of fraud, always opt for secure payment methods offered by reputable remittance services. These platforms employ robust encryption protocols and verification measures to safeguard your transactions. Furthermore, refrain from sharing sensitive information, such as passwords or PINs, with anyone, including purported representatives of remittance companies.Recovering from Remittance Fraud: Taking ActionIn the unfortunate event of falling victim to remittance fraud, do not panic. There is still a way to protect yourself and get your money back. Here are some steps you can take to recover from fraud: Contact Authorities: Report the incident to your remittance service provider and financial institution immediately to initiate an investigation.File Complaints: File a complaint with relevant authorities, such as consumer protection agencies or law enforcement, to increase the likelihood of recovering lost funds.Seek Support: Reach out to support organizations or legal professionals specializing in fraud cases for guidance and assistance throughout the recovery process.Using CompareRemit for Safe Money TransfersWhen it comes to sending money home, using a trusted remittance comparison site like CompareRemit can make all the difference. By comparing and contrasting the top remittance services available, you can ensure that your money is in safe hands. CompareRemit verifies all listed services, giving you peace of mind that your transactions are secure.FAQs: Frequently Asked QuestionsQ: Can I get my money back from remittance fraud?A: If you have been the victim of remittance fraud, don’t worry, there are still ways for you to get your money back. The key is acting in time and being transparent with the authorities. Immediately report the fraud and file a complaint with relevant authorities and seek legal guidance to pursue restitution.Q: How to get money back from wire transfer fraud?A: If you've fallen victim to wire transfer fraud, immediately report the incident to your remittance service provider and financial institution. Additionally, file a complaint with relevant authorities and seek legal guidance to pursue restitution.Q: Is money transfer safe?A: Money transfer can be safe when conducted through reputable and secure remittance services. By exercising caution, verifying recipients, and choosing secure payment methods, individuals can mitigate the risk of fraud and ensure the safety of their transactions.Q: Are money transfer apps safe?A: Money transfer apps can be safe when used responsibly and through trusted platforms. It's essential to research and select reputable apps with robust security measures in place to protect your personal and financial information.Q: Is email money transfer safe?A: Email money transfer can be safe when sent through secure channels and verified recipients. However, it's crucial to exercise caution and avoid sharing sensitive information via email to mitigate the risk of interception or fraud.Q: Is it safe to transfer money online?A: Transferring money online can be safe when using reputable remittance services with robust security measures. By following best practices, such as verifying recipients and choosing secure payment methods, individuals can ensure the safety of their online transactions.Q: Is it safe to use money transfer sites?A: Money transfer sites can be safe when chosen carefully and used responsibly. Prioritize reputable sites with strong security protocols and positive user reviews to minimize the risk of fraud and ensure the security of your transactions.

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App