What is Remittance?
Remittance is the process of transferring money from one person to another, often across international borders. It’s a lifeline for many families, helping them cover essential expenses like food, education, and healthcare. For countries like India, remittances are a significant source of income, boosting the economy and improving the quality of life for millions.
Most remittances are sent by people working abroad to support their families back home. For Indian families, sending money from overseas has become easier and more efficient thanks to various transfer options.
How to Send Money to Family in India
General Rules
- No Restrictions: NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) can transfer funds to family members in India without any restrictions using regular banking channels.
- Convenient Services: Using services like the Money Transfer Service Scheme (MTSS) offers quick and hassle-free transfers.
Popular Methods for Sending Money 
- Money Transfer Service Scheme (MTSS):
This is a quick and easy way to send money to India. International money transfer companies work with local agents in India to disburse funds to beneficiaries. MTSS is ideal for personal remittances, such as family support. Funds are usually available within the same day. - Remittance Cards:
A remittance card is a prepaid, reloadable card issued in the recipient’s name. NRIs can load money onto the card, and the recipient in India can use it to withdraw cash or make purchases. It’s convenient, cost-effective, and widely available through multinational banks. - Wire Transfers:
One of the most popular methods, wire transfers involve sending money electronically between banks. With banking and routing codes, transfers are secure and typically completed within 1-3 days. - Bank Money Orders:
Bank money orders work like postal money orders but are processed through banks. While reliable, this method is slower, taking anywhere from 3 to 30 days. - Foreign Currency Cheques or Drafts:
These are cheques or drafts issued by foreign banks and sent to beneficiaries in India. While secure, they are slower due to the time needed for mailing and clearing. - Mobile Money Apps:
Mobile apps have made it incredibly easy to send money, especially to areas without a strong banking presence. These platforms are user-friendly and perfect for quick, on-the-go transfers.
Factors to Consider When Choosing a Remittance Service
- Fees and Exchange Rates:
Not all services charge the same fees. Look for providers with low transfer fees and favorable exchange rates. Online platforms often offer better deals compared to traditional banks. - Speed of Transfer:
If you need the money delivered quickly, services like wire transfers or MTSS are ideal. Keep in mind that faster services might cost more. - Convenience:
Choose a method that suits your needs—mobile apps for flexibility, online platforms for transparency, or banks for reliability. - Promotions and Discounts:
Keep an eye out for special offers or discounts from remittance service providers to save on costs. - Trustworthiness:
Ensure that the service provider is authorized to operate in India. Reading reviews and checking customer feedback can help you pick a reliable option.
Time and Costs Involved in Remittance to India
- Fastest Methods: Electronic transfers like wire transfers or mobile apps take about 1-3 days.
- Slow Methods: Cheques and drafts can take up to 30 days, while money orders can range from 3 to 30 days.
- Costs: Fees depend on the service provider and can vary based on the transfer method and speed.
When sending money to your family in India, it’s important to choose a service that offers the best balance of speed, cost, and convenience. Consider your family’s needs and your budget, and compare options before making a decision. With so many reliable methods available, you can rest assured that your loved ones will receive the support they need, no matter where you are.
