Sending Funds to India from the US? Here’s What You’ll Need
According to a recent study by the World Bank, the correspondent lending network has been contracting in recent years causing the process of transferring money internationally to become more ambiguous than ever. If you have family or are administrating business in India, this article is meant to inform you of the basic information you will need to complete various types of money transfers to the country.
When you transfer money to India, and your aim is to wire the funds via the ACH network in the United States, the first thing you must gather is your social security number. This is a banking regulatory requirement to identify who you are. In the case that you are not a US citizen, you will need to present your tax ID number, which is the social security number’s equivalent for those who are in resident status.
To complete an ACH transfer you will likewise need to know your bank account type in the US. Are you sending money from a checking or savings account? These are typically the only two options to consider. With that, as the sender, you should have the account number and ABA routing number handy. These numbers can be obtained by logging on to the bank’s site and reviewing the details of your account. You may also check with your banker, locally, at a branch, but be sure to bring at least one form of US-issued identification with you. While there is no set limit for individual recipients, the maximum transfer to a business account in India is INR 1,500,000.
There are four principal ways you can make an ACH transfer. The first type is what’s called a wire transfer. For this kind of transfer, you must know your ABA and the bank account number. If your bank is connected to another account, it is possible to do an online transfer. If that’s the case, then only the 9-digit bank routing number is necessary. The third type of transfer is by debit or credit card. To complete this transaction, you must possess your card’s details, including the three-digit security code number at the back of the card, along with the card’s expiration date. Finally, you can complete a transfer by check. This type of transfer is less common and may require your bank’s assistance -you must have all of your recipient’s details at the ready.
Concerning the recipient, there are several pieces of information required here as well. Foremost, you’ll need the full name and address of the person to whom you are sending funds. Secondly, you’ll want to have the recipient’s bank information, including the full account number, the name and address of the bank branch, and the IFSC/SWIT code.
Alternately, you could ship a prepaid credit card to the recipient’s address or transmit the money to a cash pick-up location in India. In doing so, you’ll want to make sure the recipient has a local ID and phone number so they can collect the money.
Lastly, while sending money to India is still rather simple, a circumstance may arise in which your financial institution places a hold on the transfer and then contacts you to verify the transaction. When this happens, you will be asked to verify additional details to the representative such as the purpose of the wire.