Things to Consider Before Transferring Money from Canada to India
5 Things to Consider Before Transferring Money from Canada to India
How to send money from Canada to India? NRIs who stay in Canada can send money to India using two different methods. One is by using wire transfer. The other is using cheques and demand drafts. Here are things to consider before sending money from Canada to India.
Choose the method of transfer: As you can see, there are two ways to transfer money to India from Canada.
Wire transfer: How to transfer money from to India from Canada? As we have seen there are two methods. One is through wire transfer. Wire transfer is also known as electronic transfer. Here transfer information is sent from one bank to another using a messaging system known as Society for Worldwide Interbank Financial Telecommunication (SWIFT). The transfer request can be sent online or by visiting a bank branch. Certain details are required. This involves name of beneficiary, name and address of beneficiary bank, the beneficiary’s account number and the bank’s SWIFT code. If you are doing a wire transfer online, you need to fill up an online form. Otherwise you need to fill up the form and submit it in person to the bank.
Transfer through cheque or Demand Draft: How do you transfer money to India from Canada without using a wire transfer service? You can draw a cheque a demand draft in the name of your beneficiary in India. You need to attach a letter of instruction to the cheque. In case of a demand draft you need to fill up a demand draft form. Send the cheque or the demand draft to the bank in India through mail or courier for it to be processed.
Time taken for transfer: The time taken for transfer is an important thing to consider when sending money from Canada to India. Wire transfers are quicker; they take between 1-5 working days. Money transfer by cheques and demand drafts take anything between 15-28 days. If you need to send money fast, wire transfer is a better option.
Costs involved: Another thing to consider is the cost. There are generally no remittance charges for a wire transfer. The remitting or intermediary bank may levy a fee. You need to pay a flat foreign currency conversion fee. Service tax is also levied. The service tax is a percentage of the total amount sent. It varies between 1 per cent and 0.1 per cent of the transferred amount. For cheques and demand drafts there is a flat fee from Rs 200 to Rs 500 depending on the amount. Plus, there are courier charges. Compare the costs applicable before making a decision.
Safety: Cheques and demand drafts are a safe and time-tested option as it is drawn in the name of the beneficiary. However, there are chances of it getting lost or misplaced. Wire transfers also safe if you check your details and do not send money to a person you do not know.
Consider all the above before sending money from Canada to India. Click here to get started with HDFC Bank NRI Account.
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.