Remittances are transfers of money by foreign workers to their home countries. The World Bank estimates that migrants officially sent home more than $167 billion to their families in developing countries in 2005 – a figure more than twice the level of international aid. Remittances are playing an increasing larger role in the economies of many nations. In Latin America and the Caribbean remittances play an important role in the economy of the region. In the region, remittances have overtaken the combined sum of Foreign Direct Investment and official development aid in terms of dollar value. Remittances also account for more than 10% of GDP in six Latin American and Caribbean countries and exceed the dollar flows of the largest export in almost every country in the region.

Money Exchange Service Providers

Cash2india.com (Xoom.com) - Xoom Corporation is an online-to-offline international money transfer service. They offer a secure, fast, and inexpensive means of sending money to India. For more information log on http://www.cash2india.com or http://www.xoom.com

Western Union Money Transfer - Western Union is a global leader in money transfer services, with a history of pioneering service dating back more than 150 years.  For more information log on http://www.westernunion.com

ICICI Bank NRI Money Transfer - ICICI Bank, the leading bank in India offering financial services to the NRI community through NRI savings account, NRE Accounts, Fixed Deposits, FCNR deposits, and the quickest way to send money online to India. For more information log on http://www.icicibank.com/Pfsuser/icicibank/ibank-nri/nrinewversion/m2i.htm

Remit2India - The leading service from The Times of India Group for NRIs across the world. Remit2India offers you safe, quick and affordable money transfers from across the world, easy investments in the best mutual funds and healthcare packages for your family in India. For more information log on http://www.timesofmoney.com/remittance/jsp/home.jsp

HDFC Bank - HDFC Bank offers you quick, economical and convenient options to remit funds to India. No matter where in the world you are located, you can transfer funds to your near and dear ones in India. For more information log on - http://www.hdfcbank.com/NRI/remittances/default.htm

Sendwise - A rupee demand draft delivered to the recipient's doorstep within three to four working days and can be encashed at any nationalised bank in India - What could be simpler! For more information log on - http://www.sendwise.com

Samachar Money Tranfer - For more information log on https://moneytransfer.samachar.com

Citi Bank - Sending money to India from Middle East, America, Europe Africa, Asia Pacific, need never cost you anymore. Whatever, your commitment in India, you can make the payment by a cheque, demand draft, through an account to account transfer (if the beneficiary also has a Citibank account), cash withdrawal from an ATM or a debit card. Whichever method you choose, since your account is in India, you need not pay any transaction fee to make your payment giving you savings all the way! For More information log into https://www.online.citibank.co.in

State Bank of Travancore (SBT) - was originally established as Travancore Bank Ltd. in 1945 sponsored by the erstwhile Princely State of Travancore. Under a special statute of the Indian Parliament (SBI subsidiary Banks Act 1959) it has been made an Associate of the State Bank of India and a member of the State Bank Group, the largest banking group in India. Exchange Companies in the Middle East having Rupee drawing arrangement with STATE BANK OF TRAVANCORE For More information log into http://www.statebankoftravancore.com/fundremit.htm

HSBC NRI Services Another way to send money to India from Bahrain, Hong Kong, Oman, Qatar, Saudi Arabia, Singapore, UAE, UK, USA/Canada is HSBC bank through its HSBC NRI Services. For More information log into http://www.hsbc.co.in/in/personal/nri/nribanking.htm

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Send Money to India - Articles

BBC Online India has launched a new service in the United Arab Emirates to make it quicker for the large number of Indian expatriates there to send money home. It is estimated that $10bn of the $14bn sent to India each year currently passes through unofficial channels. The scheme is part of the Indian government's campaign to crack down on money laundering, and is intended to help reduce unofficial money transfer practice known as Hawala or Hundi. Officials in the United States believe that terrorists have used this informal and anonymous system to move money around the world. Last year the United States accused one transfer company of funding terrorists.

Fast track
Senior officials say the new money ordering facility will be more popular because money can now be received in less than ten minutes through computerized post offices. The Indian Post Office also hopes to get a 10% share of remittances sent this way. Until now Hawala has been the easiest way for millions of South Asians living abroad to send pay home to relatives. It allows people to escape a country's exchange controls while providing a better exchange rate, and it's also traditionally been faster than official channels.

Unofficial channels
Hawala transactions go through a specialist broker. The person who wants to send money gives the broker the cash plus a fee. That broker then contacts their counterpart in the recipient's country who delivers the money. The money itself doesn't move, either electronically or physically. The system is based on trust and the brokers balance the transfers over time. Although some people who currently use Hawala may be persuaded to use the new service, it's likely the unofficial channels will remain popular with people who don't want any record of their financial dealings. The International Money Order Service in the United Arab Emirates has been launched in association with Western Union Financial Services.