India Post - Money Remittance Services and International Money Order
By Jupiter Team · · 6 min read
For decades now, India Post has played a major role in sending mail and money orders and offering banking and investment services. One such service of the India Post is international money transfer. Read to find out more about how the post office's international money transfer service works and how to receive money using this service.
What is the International Money Transfer Service of the Indian Post?
International money transfer service is a service provided by the post office to receive money from aboard. The post office enables families in India to receive money from abroad in Indian Rupees. It is fast, secure, and reliable. Moreover, it is approved by the Reserve Bank of India (RBI) and the Government of India.
However, the purpose of inward remittance is only to support the sender’s family in India or for foreign tourists visiting India. The sender cannot remit money for the purpose of business or to invest.
Moreover, in this service, a maximum of USD 2,500 can be sent at once, and only 30 transactions are allowed in a year. This might not be the best option for people looking for regular deposits.
India Post has tied up with Western Union to facilitate remittances in India. A total of 7,212 post offices have been authorized to receive money from 195 countries.
How to Receive Money from Aboard with India Post?
To receive money from abroad, your sender must visit a branch of Western Union and complete the required process. Upon processing the payment, Western Union gives a Unique Money Transfer Control Number (UMTCN) or a reference number to the sender.
The UMTCN must be shared with you (the receiver), so you can take the money in India. Once you receive the UMTCN number, you can head to the authorized post office, fill out a form with the required details, and submit it along with a valid ID proof.
Upon verification, the post office will pay the money to you. If the amount is below Rs 50,000, you will be given cash. However, if it is above Rs 50,000, you will have to open an account with the post office. The post office will then give you a cheque or credit the amount into your account.
How to Send Money with India Post?
India Post doesn’t have a provision to send money abroad. Its partnership with Western Union is only restricted to receiving money from abroad. Hence you can only receive money from abroad, but cannot send it through the post office.
Cost of International Money Transfer Service
As a receiver, you don't have to pay any fee to receive the money. However, the sender will incur some costs for sending money to India. Western Union charges two kinds of fees from the sender. One is the transfer charge, and the second is a small fee on the exchange rate. The transfer fee depends on the amount sent and is usually in a particular range.
The exchange rate, on the other hand, is at the discretion of Western Union, which is slightly higher than what you see on Google. The one on Google is called the mid-market exchange rate. But Western Union charges a small fee on this exchange rate to earn revenue on the transfer. Hence the sender is shelling out more to send money to India.
Documents Required for International Money Transfer Service
To receive money from the post office, you must submit proof of identity. A copy of any of the following documents can be submitted to prove your identity at the post office.
- PAN Card
- Aadhar Card
- Voter ID card
- Driving license
- Ration Card
Things to Keep in Mind While Using India Post’s International Money Transfer
- The beneficiary (receiver) can receive the money only in Indian Rupees only for personal purposes.
- A maximum of only USD 2,500 can be sent at once.
- A beneficiary can receive money from abroad a maximum of 30 times a year.
- Only up to Rs 50,000 can be received in cash. Any amount above that is transferred to the receiver post office account.
- The post office will treat the receiver as a 'Most Favoured Customer'. Hence, they are served promptly at the post office.
Frequently Asked Questions
Can you send money internationally from the post office?
No, the post office doesn’t have a facility to send money abroad. You can only receive money from abroad through the international money transfer service.
How can I send money through India post?
You can send it using a money order. You can buy the money order at the post office and fill in all the necessary details. After submitting the money order to the post office, it will be delivered to the doorstep of the receiver. The maximum amount you can send through a money order is Rs 5,000.
How Much Time does it Take to Receive Money with India Post International Money Transfer?
It depends on where the money is coming from. For popular routes, it can take one day. However, for the less popular routes, it can take longer. Once the sender updates the receiver about the money transfer, he can collect it at the post office. It takes only a maximum of ten minutes for the verification, and the receiver can get the amount.
Can I transfer money from my Indian account to an international account?
Yes, you can transfer money from an Indian account to an international account using online transfer. All you need is the receiver account details, IBAN or SWIFT Code of the receiver's bank, and account holder information. Since this process excludes intermediaries, it can be more costly than other ways of transfer, such as wire transfers or bank drafts. However, it is one of the fastest ways to send money abroad.
How much amount can be received (remitted inwardly) from India Post in cash?
A maximum of Rs 50,000 can be received in the form of cash. For any amount above this, the receiver must open a bank account with the post office. The post office then pays the amount in cheque or credits it to the receiver’s account.
How many times can a person receive money from International sources with India post?
A person can receive money from abroad a maximum of thirty times a year.
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