Money transfers play a crucial role in the lives of non-resident Indians (NRIs) as they need to make efficient and secure cross-border financial transactions. Whether you're sending funds home, investing money or managing expenses, it's important to ensure smooth and cost-effective money remittance.
Money transfer tips for NRIs
1. Keep a track of exchange rates
Exchange rates can significantly impact the amount received by the recipient. Since currency exchange rates fluctuate frequently, especially in the short term, you should monitor exchange rate trends. Use a reliable forex converter, like Axis Bank's online currency converter, to check the current day's rates.
2. Evaluate transfer fees
Evaluate the fees charged by different providers. Be mindful of hidden charges, including intermediary bank fees, which can impact the total cost of the transfer. Some providers may offer zero or low transfer fees for larger amounts or promotional periods. For instance, Axis Bank offers instant 24*7 online remittance up to USD 25,000 without any documentation and zero commission, as per an ongoing offer.
3. Understand remittance limits
You can repatriate funds from your NRE Account without any restrictions. However, for your NRO Account, you can remit up to USD 1 million per financial year for non-current income (such as Mutual Funds or sale of property), while there is no limit for current income (such as rent, pension or interest income).
If you wish to transfer funds from your NRO to NRE Account, you must ensure tax compliance. Forms 15CA and 15CB, authorised by a chartered accountant, are mandatory. The transfer limit is capped at USD 1 million per financial year.
4. Check transaction time
To ensure the beneficiary receives the money on time, check how quickly the transaction will be completed. Ideally, choose a bank that offers the shortest processing time. Depending on your transfer method, transactions can take anywhere from a few hours to a few days to complete. Banks also have specific cut-off times for different countries. If you initiate an international money transfer before the cut-off time, the transaction will typically be completed within the same day for most countries.
5. Check applicable taxes
Funds in your NRE Accounts are not taxable, while those in your NRO Account are subject to taxation, with interest taxed at 30%, plus surcharge and cess. You can remit money from both NRO and NRE Accounts freely without any additional tax.
Also Read: Top 8 NRE Account benefits to know
Conclusion
Managing international money transfers effectively is essential for NRIs to ensure their financial transactions are smooth and cost-effective. By following essential money transfer tips, like keeping a close eye on exchange rates, evaluating transfer fees and taxes, understanding remittance limits and checking transaction times, you can optimise how you remit money.
Additionally, follow wire transfer safety tips, such as using secure and reputable transfer services, verifying recipient details and using strong passwords to ensure your transactions remain secure. Partner with Axis Bank and ensure smooth money transfers every time.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
