Understanding Fees for Transferring Money from UAE to India

However, despite the fact that the above process may sound easy, many other charges, which might be referred to as fees, or other charges, as well as the exchanged rates may fluctuate in a manner that makes it necessary for those who want to transfer money from UAE to India to understand certain issues.

Introduction to Remittances Between UAE and India

India has remained in the remittances receiving country list as one of the leading countries for many years. About half of these remittance flows are sourced from the UAE, a country with millions of Indians working there. Regardless of the need to transfer money – for family members, for investments or otherwise, it is important to understand how much it actually costs, to transfer money across borders. The total fees for UAE to India money transfer depends on several factors such as exchange rate, service charges, bank charges and the time taken.

To any person intending to transfer cash from the UAE to India, knowledge about the costs structure of the available remittance services will be helpful in making decisions. Understanding these charges can also help expatriates in minimizing expenses, ensuring that more money reaches their intended recipients.

Types of Money Transfer Services

There are many ways to transfer money from UAE to India and all these approaches have their own charges. Here’s a close look at the most common services used:

• Banks A good number of people use conventional banking as a means to transfer money from UAE to India. All banks have the international money transfer services through the customers can remit money to the Indian Bank account safely. Most banks employ a flat rate for the transfer plus an extra charge if the currency conversion is needed. The exchange rate given by banks is normally higher compared to other services offering the same service. Also, the banks could set their exchange rate, a value which is lower than the one obtained from an exchange for foreign currency, and this is after subtracting the markup.
• Money Transfer Operators (MTOs) As much as five leading MTOs in use namely Western Union, MoneyGram, and Xpress Cash money transfer service are frequently used for transferring money from UAE to India. These services are famous because they are fast and easy to use, and often the number of agents that can be sued for cash pickup by the recipient in large. Despite this being faster that the traditional banks, costs that are normally incurred are fairly high. The fees range with the quantity of money being transferred and the speed in which one desires the transfer to take place. Other ways through which MTOs earn their revenues include charging relatively lower exchange rates than the market rates imply a loss of some amount over the remittance intended for the beneficiary.
• Online Remittance Services The latest digital money transfer services that have appeared are TransferWise, Remitly, Instarem. Digital platforms have lower fees and more favourably priced exchange rates compared to banks or MTOs. They tend to be more efficient and transparent about prices. They charge an insignificant percentage of the money being sent or a flat rate. They execute transfers using live rates and therefore yield more to the recipients in India as compared to bank transfers or MTOs. To the techno-savvy, online sites are excellent avenues to avoid the hefty fees that are synonymous with such means.
• Exchange Houses An alternative option for expatriates in the UAE is an exchange house. They generally get more favourable rates and higher speed services, which are usually affected within a few hours. With their strong presence in the UAE and a wide footprint across India, they invariably offer both cash pick-up and bank transfer. Though exchange houses are cheaper than banks or MTOs you should compare their charges to ensure you get the best. The cost of transferring differs depending on the amount and the duration taken to complete the transfer so go ahead and shop around.

Breakdown of Fees in Money Transfer

The total cost that comes with the transfer of money from UAE to India depends on several factors. Here’s a closer look at the most common types of fees:

• Transaction Feervice providers demand either a one-time fee for the transaction or a proportion equivalent to the value of the amount being transferred. This fee appears to be higher in situations where the fund is a large amount and where the transfer is to be sent within a short time. Transaction fees range from AED 10 to AED 150 based on the particular service provided.
• Exchange Rate Markup Exchange rate is one of the most important parameters which defines cost of money transfer from UAE to India. Some service providers charge a markup on the foreign exchange that means service providers offer lower exchange rate to you than the exchange rate prevailing in the international market. This can be considerably expensive where large amounts of cash are being transferred.  A small change in the currency exchange difference means a lot in terms of the amount that will be received in India.
• Correspondent Bank Fees When transferring funds some go through a chain of banks in order to get to the desired account, often these intermediary banks are inclined to take a commission for the actual transfer of the money. Not all transfers attract correspondent bank charges, but where they do, this results in charges being made.
• Receiving Bank Fees At times, the bank receiving the money in India can also charge extra fee for the transaction that is being made. Such fees can however be quite large and rare likely to differ from one bank to another and from one type of account to another.

Additional Factors to Consider

Besides fees and charges, there are other aspects that need to be kept in consideration while money transfer from UAE to India:

• Speed of Transfer Some money transfer services do instant transfers while other may take a few days. It is always seen that faster transfers are accompanied by higher fees while more economical options may need sometime for a few days before the money arrives.
• Transfer Limits Some services may have significant limitations as to how much you can send in one transaction or within a given time. Be sure to check whether the service you are using has any restrictions to the amount you can transfer.
• Customer Support and Accessibility Different transfer services do not have the same level of customer support, and not all cover the same network within India. In this respect, it is also crucially important to think about the ease with which the recipient may access the funds and what kind of support will be available in case issues arise.

Reducing Transfer Costs

The service providers must be compared along with the benefits of each provider to reduce the cost of UAE to India money transfer. Here are some tips on how to reduce the overall cost making the process more easier:

• Use Online Services As mentioned earlier, the online remittance platforms usually charge lower fees and have better exchange rates than the traditional banks or MTOs.
• Transfer of Higher Amounts Sometimes, there are service providers who will give cheaper fees or a higher rate for more significant transfers. Transfer the money into fewer accounts as much as possible to minimize the total fees.
• Monitor the Exchange Rates Technically, the exchange rates vary constantly. Generally, the best way to get a good deal is to know the exchange rate and send money at the right time when the rate is in favour.
• Avoid Expediated Transfers Unless the transfer is not urgent, consider using standard transfer times to save on fees. Expediated transfers often come with higher costs.

Conclusion

This would enable an expatriate to understand the fees and charges that are levied while transferring money from UAE to India, for those who make remittances regularly. There are a lot of choices-from banks to MTOs and online remittance services and research and comparison of the costs incurred in each service would help get more money into the recipient’s hands in India rather that gulped down by excessive fees or unfavorable exchange rates.

The Global Exchange is one of the world’s best exchanges, which offers global remittance and foreign exchange services. They feature competitive rates, very low fees and reliable transfer options so that your money will get where it is going promptly and efficiently. Thus, for any such cost effective money transfer from UAE to India, Global Exchange is worth considering as one of the top choices.