A country with trading ties to almost all nations across the globe, India is also a beehive with immense talents. Many look at India as a potential market and are opening up branches or offices in India.
Bank transfers remain as one of the most common ways to make cross-border business payments to India. However, banking regulations in India require substantial information about the payment you are making. This can become cumbersome.
Moreover, Indian Rupee (INR) is one of the most thinly traded currencies in the market. Currencies, like INR, are usually traded at low volumes. Thus they can be very volatile and heavily influenced by political and economic instability.
In this article, we aim to help you better understand exotic currencies in an easy-to-digest manner, and provide advice to CFOs and other business decision-makers regarding how to approach and manage this type of currency.
Indian Rupee As An Exotic Currency
The Indian Rupee is known to be an exotic currency. As hinted, exotic currencies are those that are traded thinly or at low volumes. They are illiquid and tend to lack market depth.
Trading at low volumes does not necessarily mean weak or undervalued currencies. Rather, it means they do not exhibit popular behaviour in the trading market and are available in very limited volumes.
Typically, a partially convertible currency shows that a certain country’s trading volume is considered low in the global foreign exchange market. This is partly because governments of such countries have capital control on the limit of the amount of currency that enters or leaves the nation.
Being high in volatility, low in volume and partially convertible in nature, making international business payments in INR can become long and complex if the provider does not have a direct payment partner in the region.
Required Details When Making Business Payments From SGD To INR
- Account Holder Name
The name in your bank records
- Account Number
6-20 characters to identify beneficiary bank account
- SWIFT Code
Swift code consists of 8 or 11 characters used to identify a specific bank in an international transaction. It is used to identify banks worldwide.
- IFSC Code*
Indian Financial System Code (IFSC) is an 11-character alphanumeric code that uniquely identifies an individual bank branch for electronic fund transfers in India.
- Purpose payment code
When operating cross-border payments, to accept and process the payment, the central bank of the country may require a Purpose of Payment Code. This is so the payee can submit the reason for payment. The codes are assessed based on different aspects.
*IFSC for certain locations in India can differ, and additional information may also be required when making a payment. It is strongly advised to employ the services of an expert provider for a risk-free transaction. Explore Wallex which has a proven delivery experience in Indian Rupee.
Setting Up A Payment In INR
Follow the steps below to send payments to India through Wallex:
Step 1: Open a Wallex account for free
Signing up is 100% free with no maintenance fees or hidden charges.
Step 2: Add your beneficiaries and start transacting
Once your account is activated, you can add your beneficiaries and set up your FX payment online.
Step 3: Track payments
Wallex offers complete transparency and you can keep track of your INR payment on Wallex's platform.
How long does it take for remittance to India?
With the help of the Wallex remittance service, you can now send money to India on the same day. The location and payment method you choose will affect the transfer reasonably. You can keep track of your INR payment on Wallex's platform, and our team will keep you updated in case of any delays.
How much does it cost to send money to India?
With Wallex, sending money in the Indian rupee has a small service fee in most cases, and the FX rate applicable is updated in real-time. You can check the indicative rate for setting up a payment below. We may further discuss better rates that suits your needs. This way, you can save more despite making high-volume transactions.
Payments made using Wallex are also encrypted end-to-end to ensure security.
Here are the reasons why Wallex is the best solution for your business to opt for when making payments in INR:
- Full transparency of FX rates and fees
- Assurance that your funds will be delivered on time
- All transactions can be done online
- Faster transfer and turnaround time
- Dedicated account manager
To know more about Wallex and our offers to help your business, feel free to visit www.wallex.asia/ to schedule a demo.