Nov 082014
 

By Mohammed Waseem

We have known many money transfer services that allow transfers to India and similar developing nations. Sending money from India is however subject to a lot of restrictions, it is not impossible though; but the options are very few and many of the common people are unaware of them. Any leading money transfer service you mention, they have no way to send money out of India due to the restrictions involved.

There are few foreign exchange companies that offer money transfer from India to many countries. Thomas Cook is a leading foreign exchange company and a travel agency that has branches in all major Indian cities. They offer money transfer services from India to over 120 countries.

Thomas CookIn order to send money, one has to walk into a Thomas Cook office and complete the process to send money abroad in a fast, reliable and convenient manner. They have special services for speedy transfers and for students looking to study abroad. Other than that, the transfers need to be for personal use only.

Money can be sent abroad for maintenance of close relatives, and the Reserve Bank of India has defined who falls into the definition of ‘close relatives’. It includes the sender’s spouse, or a member of their Hindu Undivided Family, which is a form of family business in India. Other relatives include parents, children and their spouses, grandchildren and so on. A list of 22 relatives other than the spouse has been mentioned.

As per the regulations, any resident of India, including a minor is allowed to remit up to USD 100000 per financial year, provided a proper reason is specified. For larger amounts, prior approval of the RBI is necessary, and this is not easy to acquire.

Being a foreign exchange dealer, they can offer good rates. But that is not something that the senders would bother, as finding a service that allows money transfer out of India is a difficult task.

 

Sep 232014
 

By Mohammed Waseem

Foreign currency transfers is a natural expansion option for foreign exchange houses and companies that work with them. Many companies have come up with this kind of service and are successfully running money transfer services from one part of the world to another. The benefit they focus on is better rates than a bank.

While this is common for almost all companies in this league, they have distinct USP that helps them attract new customers and that also retains old customers. However, as it is difficult to differentiate between various services offered and the factors involved in each of the services, having a distinct USP is very difficult. For this reason, they provide a guarantee or challenge other service providers.

World FirstThe guarantee may be in the form of better service, fast transfers, lower fees or better rates. This eventually serves as their USP. To quote an example, UK based foreign exchange company, World First offers a great service that guarantees unbeatable exchange rates, exceptional levels of service, fastest available international payments and free transfers for UK based customers making personal transfers.

Having said this, it is questionable as to how fast the transfers can be. They take anywhere between a day and four days to complete a transfer. They cannot compete with leading money transfer operators in claiming that their transfers are the fastest. If they intend to compare themselves with banks and other exchange houses, it is a different point, but I believe it does not make sense.

When we talk about transferring money, we do not ask whether it is an exchange house or a different company. All we want is better rates, lower fees and fast transfers; whether it is World First of Western Union or any other service. It is however possible that they provide a much better service and better rates, but speed can’t be their USP.

World First allows customers to send money to other parts of the world through correspondent banks, such that money is deposited directly into the recipient’s account. The transfers happen through SWIFT as the company is a member of the SWIFT network. Transfers can also be scheduled for a later date with the help of a future contract. This link takes you to the sign up page. If interested, the users can try their service and see how different they are.