The UAE houses a huge population of Indians. Recent numbers suggest that at least 30% of the UAE’s population comprises Indians.
Such a huge population of Indians – both resident and non-resident – is bound to have relatives back home in India. Most Indians in the UAE today are living here for work purposes. They have familial obligations to fulfil, and hence, most of them send money home to India every month.
Transferring money online
This transfer of money has traditionally been happening through money orders. Now, with the Internet being used extensively in the banking sector, online money transfer to India has caught on in a big way. There are some excellent online money remittance services that allow Indian expats to transfer sums of money to their relatives in India. The money is deducted via credit/debit cards in real time.
This ease of transferring money is a boon for millions of Indians, both in the UAE and back home in India. Working Indians in the UAE have to mandatorily send money back home to their dependents every time they get their salary. For most Indians back home, especially senior citizens, the online transfer of money to India option is a prized bonus; now they can get money directly into their bank accounts at any time of the day. This is helpful during medical emergencies or during acute financial crises.
Its benefits…and some risks
Online money transfer to India is an extremely convenient option. Not only does the transaction take place quickly, it allows users the freedom to remit money whenever they want. There is no banking hours’ time limit on the transaction. Some premium banks have also begun offering the online money transfer to India option, where the bank in the UAE has a tie-up with prominent Indian banks such as Axis Bank.
If you wish to transfer money to India using the online option, you must have enough balance on your debit card or credit on your credit card. Also, you must make sure that you do not use your overdraft facility to send money.
Those using credit cards are cautioned into not overspending on their cards while remitting money. The UAE perennially sees several cases of credit card debts, which happens when people do not curb their spends. Also, you must never be tempted to take a loan to remit money – this will only put you in further debt, where you also have to pay a high rate of interest. People remit large sums of money when the exchange rate of the Indian rupee falls. While this makes fiscal sense in the short term, it means that a larger dent has been created in your Dirham budget.