The hidden costs of international money transfers: What every NRI should know
For NRIs, international money transfers are more than just financial transactions; they keep people connected to their family back home. According to the Reserve Bank of India, the majority of inward remittances support family needs.
Having moved from India to Singapore for education in 2006 and staying on for work, I, too, send money back home on a monthly basis. Through my experiences — particularly after joining a company specializing in cross-border payments — I’ve come to understand that the process for most people is often far more complicated and costly than it has to be.
Despite the growing need for cross-border payments, traditional methods of moving money around the world remain stuck in the slow lane — opaque, expensive, and frustrating. Historically, international transactions often pass through a chain of intermediary banks who may add their own fees to the process that increase costs and delay speed. This outdated system simply isn’t keeping pace with the reality of our interconnected lives, turning what seems like a straightforward transaction into a complex web of costs that can significantly impact the final amount reaching Indian shores.
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Breaking down international transactions
Think of international transfer costs as an iceberg: the tip above the surface is just the upfront fee, while hidden costs like inflated exchange rates and intermediary fees can lurk beneath.
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