Online transfers are now preferred by a large number of NRIs to send funds to India regularly. But while online remittance is as simple as using net banking to transfer funds to another bank account, a lot can still go wrong. Check out this post to know five of the most common mistakes people end up committing when transferring funds online.
With online remittance, sending money from one corner of the world to another is now easier than ever. NRIs working in all the different parts of the world are the biggest beneficiaries of this advancement in money transfer technology.
One of the biggest benefits of using an online money transfer service is that the whole transfer process is pretty straightforward and quick. In fact, online remittance is very much similar to using net banking for transferring funds between bank accounts.
However, a lot of people, especially ones using online remittance for the first time, end up making several mistakes. These mistakes can sometimes also prove very expensive. Here is a list of some common remittance mistakes so that you can avoid them and ensure that your transfers reach your recipient on time and in the safest possible manner-
1. Not Checking the Exchange Rates
The exchange rates fluctuate based on the forex markets and can vary significantly between two remittance service providers. So, before making a transfer, it is essential to first check the exchange rate offered by the service provider.
It is also worth noting that the exchange rate could also fluctuate even after you have already initiated the transfer. However, there are a few service providers that offer guaranteed rates that do not change in-between the transfer. Prefer such guaranteed rate services as long as it is offered by a reputed provider.
2. Watch Our for Hidden Fees
Service providers that advertise exchange rates higher than the average market rates generally have hidden money transfer fees and additional charges. Ensure that you thoroughly check the exchange rate, transfer fees, and also go through the terms and conditions mentioned on their website.
Selecting a reputed Indian bank for online remittance is a smart way to avoid this problem. Banks are known for their transparency with regards to exchange rates and other charges.
3. Choosing Better Rates Over Safety
It is common for a lot of first-time remittance service users to select the least expensive transfer service. This strategy is often known to back-fire as most such service providers offering cheap international remittance services are not secure.
So, in the bid to save a bit of money, you might end up risking the entire remittance amount. It is always better to go for a service provider that offers a combination of competitive rates and enhanced safety.
4. Confirm the Account Details of Your Recipient
With online transfers, the funds get deposited directly into the bank account of your recipient. So, you will be required to provide details like name, bank name, account number, branch name, etc. of your recipient to initiate the transfer.
Errors in recipient details is one of the most common money transfer mistakes. So, double-check the details with your recipient and even after you enter the same on the money transfer portal to avoid any errors.
5. Not Knowing the Average Delivery Duration
You should also know the estimated, if not the exact, duration the service provider generally takes for transfers from your current country of residence to India. This becomes very important in cases if you need to send money to India online for an emergency.
So, while selecting a service provider, do check the average delivery duration of the transfers. Top Indian banks now offer same-day transfer service.
Online Remittance: The Easier Way to Send Funds to India
While online remittance is currently the most convenient and cost-efficient way to send funds to India, one should always be as careful as possible to avoid making any mistakes.
In case if you do make a mistake and realize the same after confirming the transfer, instantly contact the support department of your service provider. They might be able to stop the transfer and offer other assistance as required.