How to Send Money from UK to India?
Monetary transaction has becoming the most approached activity in today’s era in terms of buying overseas property, sending money to friends and family living abroad, paying for overseas tuition fees, for holiday purpose and many more other prospects. However, all kind of such transactions are charged with a fixed amount whether a large amount or a regular one is being transferred from one account in UK to another of India. In case of account exchange rate, the cost is also added up.
According to the data made available by the World Bank, India is the biggest corridor for UK’s remittance, transferring around 300 million pounds, sharing about 16% of the total financial transactions done in UK every year. Assuming the huge opportunistic scenario of the present market with India, the British government has announced new guidelines for money transfer companies, ensuring the safe transfer of money sending from UK to Britain overseas including India, since before people used to face little trouble in sending money to India reaching to the right person and to correct endpoint. In this lieu, the Department of International Development (DFID) has introduced a new Remittance Customer Commission to assist the customers in easy fund transfer from UK to India and elsewhere.
Available Transfer Options
Before going to process the international fund transfer from UK to India, one must go for the authorized financial service providing company which ensures a safe and authentic transfer deal. For this, one need to get open the account with the concerned company to process the money transfer to India; registering with that account demands an identity proof to be submitted like the passport or UK driving license. Once, the account is open any of the transfer modes can be taken as per the suitability, viz., Online Transfer, Transfer Through Mobile or Transfer at Branch through an Agent.
- Bank Transfer
The most opted and very traditional approach is bank transfer. People finds is much comfortable and the trusted one in international monetary allocation. Recipient’s details like, name, address, account number, their bank’s name with branch, the SWIFT Code and the IFSC (Indian Financial System Code) are some essential requirements while processing the financial transaction to India.
In spite of being so trustworthy option, it too has some obstacle to deal with. First, not everyone has a bank account so that it can be processed smoothly. Second, the transfer through bank proves a costly way, as additionally a fixed figure is also charged at very poor rates of exchange with the transferable amount; however people still prefer to take banking mode as they can access the cash through ATM. Another shortcoming is the process length; number of days is consumed to credit the amount to the recipient’s account, approx. 5 days are required to get the transfer done, which is not acceptable in case of immediate requirement.
- Transfer Through Mobile Wallet
As an estimated figure around 40% of mobile phone users will own smartphones by 2019, featuring its wide ranged technological approach and expertise. All the day to day activities are summarized in a single device and thus so the money transfer. The international fund transfer is also become an easy movement by having a Mobile Wallet App into the phone, performing as a physical wallet allows the user to store money, make payments and also transfers the amount straight to mobile wallet of other person anywhere in the world. The cash is immediately transferred to other’s wallet account for any of these activities.
- Money Sending Through Bureau
Money transfer in cash through agent is one of the quickest ways indeed. To go with this option, accessing a trustworthy and authorized agent is the must. This Bureau makes the money transfer easy and quick, all they need is the detailed information of the receiver, who can collect the amount immediately from the local agent. This is the cheaper ad quicker option in comparison to bank as being in a competitive environment, thus the transfer fees is far cheaper than charged by banks.
Things must be considered are to collect the cash amount by the recipient in person so as to avoid any fumble. Additionally, the exchange rates of these agents are often fixed, so the present currency value cannot be reflected which use to change after every second, hence the sender won’t be benefited if a favorable exchange rate is available at that time.
Though various options have made the international fund transfer much easier and comfortable from UK to India, yet some precautionary measures should also be kept along with to make it secured and authentic as well.
- One should make sure that the firm through which the fund is to be transferred must be authorized or registered with the Financial Conduct Authority (FCA) in UK.
- All the relevant documents and receipts must be kept safe to evidence the authenticity of the transfer in case if anything goes wrong.
- A confirmation should be get from the recipient when the transfer been done.
- The details of the firm must be acquired beforehand viz., its SWIFT or BIC membership and other authentications. The agency should also be verified before to get the transaction done.
- On using online or mobile wallet as the transfer alternative, then one must be very careful while processing the same. To have an online or wallet account the password must be extremely unique and hard to hack, comprising a combination of alphanumeric characters, symbols and upper or lower case. Details already provided in account registration should not be included as the part of password like birthdates or name.
- Moreover, while going for the procedure one must beware of the hidden charges incorporated in the transfer assistance. The existing price value of the currency must be taken into consideration along with the proportional value of both the currencies at that time. Also, while presenting exchange rates banks used to offer very poor rates with a high levy of many hidden charges, which must be accessed before when making the fund transfer.
Tax Laws and Other Limitations
Billeting in UK or abroad, only make the people eligible to transfer money. In case of sending money back to UK even, one must be domiciled in UK or overseas legally. If one is not a resident of UK then no tax will applicable on the money sending back to UK else a basic and regulative tax will be applied on such transactions. Hence to avoid the implicated tax, one needs to prove himself/herself as a non-resident of the UK.
Also, only banks are the institutions providing a safe and secure fund transfer even if the amount is less than £50. In any hostile condition there is a chance to get back the amount if processed through banks. Unlikely, money transfer firms and foreign exchange agents never offers such benefits since they don’t protected by Financial Services Compensation Scheme (FSCS). Online modes for transfer also have some limitations to go with in terms of security and authenticity regarding the exact and assured process of the fund transfer to the destined point.