For an expatriate Indian, sending money home is a way of life, a culture commitment that bonds them to their families still in India. Normally, the money goes to elderly parents for their maintenance, for education of siblings or close relatives or for weddings. When money is sent to India, it is required either urgently, such as may be the case for an illness or accident or simply a monthly remittance.
For urgent requirements, money can be remitted by wire transfer or through a remittance agency. For monthly remittances, the least-expensive way is to make a cheque transfer to India. A cheque transfer is far less costly, but it does take up to a month for the check to clear and the funds available to the recipient. There are two forms of cheque transfer to India; personal cheque drawn on the remitter’s bank account and a cashier’s cheque.
- Personal cheque: It is a simple matter to write a cheque in the funds of the account country, be it the USA, the UK, Australia or any other country. The cheque is then mailed to the recipient in India and upon its receipt; the amount is converted from dollars or sterling to rupees. The rupee amount is credited to the beneficiaries account, but it cannot be touched for perhaps a month. The cheque must be returned to the issuing bank for clearance and once it clears, the receiving bank is free to release the funds to the recipient.
- Cashier’s cheque: The process of getting the cheque to the recipient is the same, through the mail. The difference is, the cheque is bought and paid for by the sender so that when it is presented to the recipient’s bank for negotiation, it is seen as a pre-paid instrument and the funds are released early. The cost of the cashier’s cheque is borne by the sender; the recipient simply collects the appropriate rupees.
For those who find cheque transfer to India to be a suitable solution, they usually send a series of postdated cheques that eliminate the need for constant mailing.
For those who find that a cheque transfer to India does not meet all their needs, they have adopted wire transfer for any urgent demands that arise and maintain cheques for the routine monthly remittance.
Wire transfer can be accomplished either bank to bank or by using one of the many agencies that offer this service. It can get the cash to the recipient quickly but at a cost that may be prohibitive if used for all remittances. The Internet has allowed for online transfers that are less expensive than a wire transfer and are completely secure.
