When sending money to any other country, it is worthwhile comparing providers to get the best rate and the best service. Also, fees tend to vary between arrangers. Taking India as an example, this article will look at what you should know when you send currency to India.

India’s Currency

First of all, you should know that the currency of India is the rupee. The word “rupee” derives from the Sanskrit word “rupyakam” and dates to the 1540s, which means silver coin. To maintain this kind of value in your currency exchange, it is for those converting to or from the currency to know the rates. Today, it is the Reserve Bank of India that issues the currency rates under the RBI Act 1934.

The Indian rupee is divided into 100 paise. As of 2019, 1 rupee was the lowest value.

Spot Exchange Rates

It is the USDINR spot exchange rate that will specify what one currency is worth compared to another. Whilst the USDINR spot exchange rates will be quoted and exchanged during the same day, the USDINR forward rate will be quoted for payment and delivery on specific future dates. 

Economic Trend for Indian Rupee

In 2021, the Indian rupee did weaken past 74 compared to the USD in July. This was its weakest level since mid-April and due to the impact of the spread of the covid pandemic’s Delta variant. This is something to be aware of in terms of predicting exchange rates now. The negative impact has resulted from various countries imposing restrictions.

Keeping an eye on financial reports will help assess currency impacts on the rupee and other worldwide currencies because of global factors.

Transfer Fees to India

The percentage of fees on transactions will reduce with the more money that you transfer. For example, the percentage transfer for 137,410 USD might be 0.53%, whereas it would mean only 0.37% on 1,374,100 USD. So, it is worth transferring more money to India less frequently than less money more frequently, so as not to end up paying more in fees. So, this is another aspect of timing money transfers between different countries, apart from their fluctuating currency rates.

In General

Some general tips on sending currency abroad include thinking about the timing of the transaction. This is everything, as to send money when the exchange rates are not in your favour is to cost more money than the payment might otherwise have done. This is particularly tricky in business because you do not want to be seen to deliberately delay payment when it might disadvantage another financially to favour yourself. It is worth considering, though, when business is about survival. Those more financially-minded are likely to survive in business in situations where a pandemic makes it particularly challenging.

Effective trading of goods is about knowing the exchange rates. This applies to the exporting or importing of goods to or from counties such as India. In both cases, either money will be received or paid, and the timing of this will affect profits and how much of a margin is made from a transaction. Fees added on to transactions can also add to the expenses, and international traders should be aware of all that has been discussed above to make a success of their business.

So, to send money to a place such as India, you would first of all need to know something of the currency that you will be dealing in, what spot exchange rates mean, and how the Indian rupee is trending in terms of its exchange rate. This will help you to get the best rate. Then you should be mindful of the transfer fees you might incur from using different providers for this service. Timing is everything in terms of the exchange rate for the period of the transaction, and this can only be assessed from being able to access these rates 24/7 and see immediately the changes and updates. 

Transferring to India is easy to do but it is good to know the implications so as not to lose out financially.