Up until recently; there were five money transfer services; check, bank draft, telegraphic transfer, money order and wire. With the advent of the Internet, there are now on-line services that also perform the same function. These services are available worldwide and are one of the primary functions of consumer banks. Let’s have a look at these methods:
The check:
A check is a piece of paper that is issued by the owner of one account to another party. The party can be a person or a business. Regardless of the size of the check or the design imprinted, the check must contain all the information that is required for the transaction to be completed. The check must contain the name of the payer, the name of the payee, the date of the transaction and the amount. The bank, the account number, the bank identification number and branch identification is information that is preprinted on the check, all in accordance the format laid down by the country’s central bank.
A draft:
If an individual wishes to send money to India from UK, a draft is often used. A draft is similar to a check, but with differences. A draft can be prepared in a foreign currency, and it can and will be accepted by any bank in any country as it is pre-paid. The draft is paid for in local currency at the time it is issued.
Money transfer:
A money transfer is rarely used to send money to India from UK. A money transfer is most frequently used intra-European. Funds are simply moved from one account to another, the recipient needs no documentation as the money flows directly into his account.
Money order:
Money orders are losing their popularity as they have become one of the primary methods of laundering money, and institutions are shying away from honoring them. A money order is a document which is offered by banks and independent companies. The money order contains the amount, the payees name and the date. The money order is mailed to the recipient who then negotiates payment from a branch of the issuing company or his bank.
Wire transfer:
A wire transfer is often used to move money quickly from one bank account to another in a foreign country. Every bank in the world subscribes to the system; a wire transfer can only be accessed from a bank. A wire transfer is a safe way of moving money, but the recipient’s complete information must be accurate as an error can be costly.
On-line:
The most modern and perhaps the most effective way to move money is from the comfort of your home. On-line services make it simple, quick and safe to send money to India from the UK.
