In plain terms, money transfer is the transfer of money from one bank account to another. It may be a physical or electronic transfer of funds from one to another bank account. It may happen in different countries, between the same bank operators, between other bank operators, in the same country. This is the act of moving money from one location to another in the same country or overseas.
The process to transfer funds is electronic. This is the cashless mode of transferring cash from one bank account to another.
How does money transfer work?
In very simple steps, money transfer through mobile apps or money remittance software is achieved.
- Visit the remittance agent or service provider of a local bank.
- By name, mobile number, and give him cash, register your remittance account.
- You will get an OTP to your mobile number by verifying your remitter account.
- Now you must give bank details including name, account number and IFSC code of the receivers.
- Agent must sign the recipient's account
- Fill the amount you would like to send to the recipient's account
- Now the agent receives an OTP, and after sending an OTP, transactions take place
- Get transaction receipt from the agent
As technology is rising, money remittance services are progressing. There are many places in India that banks cannot reach. Banks are introducing a strategy to place society on the same financial platform. They grant you the authority to use the money transfer to India facility.
Disadvantages of a money transfer facility
- You may need to pay a small fee to the banks to send money to India. Often by using online money remittance services in exchange for online fund transfers, you have to pay an extra small fee for these services. But that is not a significant deal, since you can use these services to move money quickly.
- When you use credit/debit cards to conduct financial transactions online, hackers also manipulate your data. Your computer ID and password can be compromised and can be used to harm your bank account.
- The poor and those without bank accounts are going to have trouble spending and collecting payments.
- It is not the worst service for customers, but it is not healthy. Your assets get frozen if your account gets suspended, and it could take months to unfreeze them.
With all the choices around us, there is no perfect way of sending money to India. Each remittance service aims to be as easy as it can be. To see which one meets your protection, transfer rates, and efficiency requirements, you want to analyse the resources at your disposal.