How Wire Transfer From India to Abroad Works?

In today’s time, the world is your oyster. Geographical boundaries are longer stopping people from exploring new countries and places. Better job opportunities, higher education, superior medical facilities, or for tourism purposes- going international is getting common. And for all of these, you might need to make international money transfers to adapt and survive in a new place. People need to make such wire transfers for education fees, medical treatments, supporting friends and relatives settled abroad, and taking a foreign vacation among others. Travel and education dominate the reasons for international fund transfers. For first-timers, the most asked question is, "How to transfer money to another international bank account?" With the help of various international wire transfer services, you can now transfer money instantly to your loved ones.

What is an International Wire Transfer?

A wire transfer of money is an electronic way to transfer money. It is called Domestic Wire Transfer when money is transferred electronically from one bank account to another in India. International Wire Transfer is an electronic fund transfer from an Indian bank account to an international bank account. To send money abroad, there are intermediaries like banks involved that offer offline or online money transfer services.

The RBI allows for up to ₹250,000 from India to be sent by one individual or entity for business purposes called business money transfer, overseas education and employment, tourism, medical, and other necessary expenses of relatives abroad, etc. per financial year.

How to Send Money Abroad Via Wire Transfer?

You can send money abroad in either of the two ways:

Offline Process

• Visit a bank’s branch that provides outward remittance (another term for international fund transfer) facilities. Alternatively, some third-party providers also offer international wire transfer services.

• Fill out the outward remittance form called Form A2, attach requisite documents like PAN card copy, Original receipt/ bill/ fee slip, etc., and proof of adequate funds. Some service providers may require additional documents.

• Provide the entire relevant beneficiary or recipient information needed as well as your account details from which the money has to be wired.

• Specify the amount to be transferred along with its currency.

• Post payment of the applicable international wire transfer fee, your transaction is processed.

Online Process

• Step 1: After logging in, look for the option to send money abroad. This could be under 'Wire Transfer', 'Overseas Transfer', 'International Money Transfer', or something similar.

• Step 2: You might have to check whether or not your international transfer service is active or not. If not, you can activate it online. Also, check if your bank has set a daily limit on the transfer amount. You can alter the transfer limit online.

• Step 3: Provide correct beneficiary details such as full name, address, bank account details such as account number, bank name and address, and bank's SWIFT code.

• Step 4: Choose the amount and currency. In most cases, the currency would be automatically chosen based on the furnished details.

• Step 5: Pay the international fund transfer fee and submit the transfer. In most cases, the international money transfer is credited on the same day.

What is the Process Involved in an International Fund Transfer?

Be it an fund transfer for personal reasons or a business money transfer, there’s a detailed process that happens.

Here are the 5 major steps in the process:

• Sender: A money transfer service is not only performed by a bank but it can also be done by a third-party service called an online money transfer service provider.

• Document Verification: The sender’s KYC documents are verified by the money transfer service provider. This is to ensure the sender is following all the RBI remittance rules, especially concerning the maximum allowed limit to remit money abroad (USD 2,50,000 per year).

• Wire Transfer Initiation: Post document verification, the wire transfer service provider (your bank or money transfer company) deducts the transfer amount from your account via direct debit or RTGS/NEFT in case of a third-party service provider.

• Wire Transfer is routed via SWIFT: The current foreign exchange rates are booked and the beneficiary information is fed into the SWIFT Network. (SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. A software called SWIFTNet Link is provided to the banks in the SWIFTNet Network through which the international money transfer transactions are carried out.) In case, the beneficiary bank is not part of the SWIFT network, the money transfer is wired through intermediaries connected to SWIFT.

• Funds are Credited: The beneficiary bank receives the Wire Transfer message and credits the funds to the beneficiary account.

Conclusion

Sending money abroad has never been so simple and convenient. However, before making an international money transfer, be sure to check RBI’s outward remittance regulations and limits. Also, do enquire about the fees/charges levied on such a transfer by your bank or an intermediary service provider.