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Money Transfer in India: Know What You Don’t Know

  • June 21, 2017
  • rootroot

The recent demonetization stunt by the Government of India revealed a lot about India’s acceptance towards digitization in the country. The unexpected cash crunch led to an interesting increase in the number of credit card transactions in the following months, while card transactions made over point-of-sale terminals also saw a whopping 88% rise in October. But the most encouraging numbers were those that came from online transactions like account transfers, mobile banking and mobile wallets that witnessed a collective rise of more than 100%, making these solutions the king.

Digitization has been playing an important role and will continue to do so in the coming year, given the existing pressure that exists to standardize processes, eradicate costs, reduce variables and reshape businesses. Digitization of payments would enable improved transparency, preventing the movement of unaccounted money and bringing transactions in the ambit of the Indian banking system.

India has various payment settlement systems in place for gross settlement through a Real Time Gross Settlement (RTGS) system, and net settlement systems such as Electronic Clearing Services (ECS Credit/ Debit), credit and debit cards, National Electronic Fund Transfer (NEFT) system along with an Immediate Payment Service (IMPS). In addition, to enable customers to make more of electronic payments, various banks have developed convenient channels for online payments viz. internet banking and mobile banking apps.

The role of Money Transfer Service Providers

A Money Transfer service provider makes it possible for customers to send and receive money from their near and dear ones in a quick and hassle-free way. The RBI approved real-time transfer service allows almost instant delivery of the amount within less than 10 minutes.

For example, Muthoot executes its online money transfers and payment services through trusted sources including Western Union, Money Gram, Xpress Money, Instant Cash, EzRemit, Transfast, Royal Money and Global Money Transfer. With over 4,300 branches across India, Muthoot carries out close to 2 million transfers annually and is therefore, recognized as the Largest Single Payout Centre in India.

Safely transferring your money

Transacting online consists of e-transfers and power transfers, which is a web-based wire transfer system that effectively eliminates errors associated with regular wire transfers. While no single option can be considered the best, you should choose a reputed service provider to be assured of a safe and secure money transfer. When making transactions outside of the country, make sure you check the corresponding institutions abroad which will be receiving these transfers. Apart from that, here are a couple of useful points to note:

The reason for difference in money transfer charges

There is an inverse relationship between the speed of money transfer and the cost associated with it. Did you know that? Well now you do! While service providers may charge you a little higher when compared to banks, they are known to offer more specialized services and a significantly better reach.

Never share passwords and important information

Sharing your personal or account information in response to unsolicited emails or messages can land you into great trouble. Remember, neither the sending nor the receiving service provider will request your account number or your personal identification information.

Stay informed about the basics, and choose only the most reliable service providers for money transfer, to transact with complete peace of mind!

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WHY US

We are India's No.1 - Most Trusted Financial Services Brand, according to the Brand Trusted Report, 2017 & 2016 consecutively. We are also the largest Gold Financing Company in India in terms of loan portfolio, according to the 2015 update to the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2015 ("IMaCS Industry Report, (2015 Update)"). We provide personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time-frame, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.

  • 25000

    Employees

  • 4500+

    Branches spread over 21 states and 4 Union Territories

  • 6 million

    Customers in our portfolio

  • 131 year

    Existence