A Step-By-Step Guide For Remitting Gift Money To UK From India

India is home to the largest number of people living abroad, with around 3.2 million Non-Resident Indians (NRIs) and People of Indian Origin (PIOs). In the UK, there are 1.92 million individuals who are multicultural, which makes them a significant part of the population. This community plays a crucial role in contributing to the UK’s economy by accounting for 6% of its GDP and creating around 120,000 job opportunities. As a result, India stands as the largest investor in the UK. The states that contribute most to gift money transfers from India to the UK are Maharashtra, Punjab, Gujarat, Delhi and Kerala due to their diaspora communities and financial resources. On the other hand, London, Birmingham, Leicester, Manchester and Coventry serve as destinations for receiving these remittances within the UK. These monetary exchanges highlight the rooted connections between India and the UK that stem from shared histories and standing collaborations. This article delves into exploring the dynamics and impact of this link between these two nations.

Indo-UK Economic Relations

India continues to be the UK’s source of foreign direct investment (FDI), with 118 projects in FY 2022–23 leading to the creation of 8,384 job opportunities. On the other hand, the UK holds the position of being the largest investor in India, with a total equity investment of US $33.88 billion from April 2000 to March 2023, contributing approximately 5.34% of all foreign direct investment in India. According to a report by CII Grant Thornton, there are 618 companies operating in India, generating a turnover of INR 3,634.9 billion and directly employing around 4,66,460 individuals. This significant exchange of investments highlights the partnership between these two nations.

Modes of Sending Gift Remittances to UK

1. Cash: There are ways to send money to the UK, including using a courier service or sending it through the postal service. It’s essential to be aware that sending cash internationally carries some risk as it is more vulnerable to theft and fraud.
2. Gift Cards: Sending money to the UK can be made easier with the use of gift cards. There are plenty of retailers where you can buy these gift cards and have them conveniently delivered to the recipient in the UK. The great thing about gift cards is that they provide the recipient with a range of shopping options, making them a versatile and thoughtful gift choice.
3. Certificate of Deposits (CD): A CD is a savings account that provides a higher interest rate compared to a standard savings account. Individuals have the option to buy CD’s from either banks or Non-Banking Financial Companies (NBFCs) in India and have them delivered to recipients in the UK. The recipient can later convert the CD into cash upon its maturity. CD’s generally require a deposit and have a term ranging from 1 to 5 years.
4. Wire Transfer: Sending money internationally via wire transfer is an efficient method. You have the option to initiate a wire transfer either from your bank account or by using a money transfer company. On average, wire transfers usually take around 1–2 business days to complete the process successfully.
5. Money transfer companies: There are companies specializing in international money transfers that provide services for sending money across borders. Such companies often provide reasonable exchange rates and ensure speedy processing times.

Comparison of Cross-Border Payment Methods

Documents Required For Remitting Gift Money To The UK

The documents required for remitting gift money to the UK from India may vary depending on the money transfer service you use. However, some of the common documents required include:

• Passport: Passport number
• Proof of Identity: Government-issued ID, such as driver’s license or PAN card
• Gift Letter: Letter stating that the money is a gift
• Recipient’s Details: Full name, address, and bank account information

Make sure to reach out to the money transfer service you’re using and find out what documents they specifically need. You might have to submit paperwork like a marriage certificate or birth certificate if you’re transferring money to your spouse or child.

Calculation of TCS on Remittances

Here are a few additional points to keep in mind:

• As per the RBI, Under the Liberalized Remittances Scheme (LRS), every Indian resident can send up to USD 2,50,000 in a financial year. An individual can remit multiple times during the year for various purposes permitted under the LRS limit. However, the total amount of all such transactions must not exceed USD 2,50,000 in a Financial Year.
• It’s worth mentioning that the TCS on remittances is applicable even if the amount is sent to a close family member.

Rates & Fees

The charges and fees for sending gifts from India to the UK will vary based on the following factors:

• The specific amount of money being sent
• The chosen method of sending
• The bank or money transfer service being utilized

Why choose HOPRemit?

HOPRemit by moneyHOP is an instantaneous, cost-effective, user-intuitive, and contactless international remittance service that is tailor-made to serve Indians. It provides customers with complete transparency and significantly reduces the total transaction costs of sending money abroad. The HOPRemit platform represents the perfect concoction of a fintech’s agility and the security observed in a bank.

Here Are Some Features That Make HOPRemit Different:

• Best Exchange Rates: HOPRemit provides some of the best exchange rates for currency conversions. They regularly update their exchange rates to ensure that customers get the most favorable rates possible.
• No Hidden Charges: HOPRemit is committed to transparency and honesty in their dealings. They do not charge any hidden fees or commissions, so customers can rest assured that the amount they see at the time of the transaction is the exact amount they will be charged.
• Fast Processing Time: HOPRemit understands the importance of timely money transfers. They process transactions quickly, usually within 48 hours, so that the money reaches the recipient as soon as possible.
• 24/7 Availability: HOPRemit operates round-the-clock, 365 days a year. Customers can access their services at any time of the day or night, regardless of their location.
• Freeze Exchange Rates for 24 Hours: HOPRemit offers the option to freeze exchange rates for up to 24 hours. This means that customers can lock in a favorable exchange rate and be certain that the amount they will receive at the time of the transaction will remain the same, regardless of any fluctuations in the market.

Also read: Easy Way To Send Living Expenses to UK From India

5 Simple Steps To Transfer Gift Money With moneyHOP

• Create an Account: To get started with HOPRemit, you’ll need to create an account by signing up using your email address and phone number. This process is quick and easy, and once you’ve signed up, you can start using the platform right away.
• Enter The Amount: Once you’re signed in, the first step is to choose the amount you want to send. You can do this by selecting the currency you want to send, choosing the purpose of the transfer, and entering the amount you want to send.
• We’ll Verify Your Details: To ensure security and prevent fraud, HOPRemit requires all users to complete their KYC (Know Your Customer) verification process. This involves providing some basic information about yourself, such as your name, date of birth, and address, and uploading a valid government-issued ID, such as an Aadhaar or PAN card. The verification process usually takes just a few minutes, and once completed, you’ll be able to use all the features of the platform.
• Enter Recipient Details: Once your account is verified, you can enter the details of the recipient you want to send money to. This includes their name, address, and other relevant information, such as their bank account details. You may also need to upload some additional documents, such as a proof of relationship or bank statement, depending on the purpose you have selected.
• Pay For Your Transfer: Finally, you’ll need to choose how you want to pay for your transfer. HOPRemit offers several payment options, including net banking, credit/debit cards, and UPI (Unified Payment Interface). Once you’ve selected your preferred payment method, you can complete the transaction, and your recipient will receive the funds within a few hours or days, depending on the country and payment method used.

Who Are All Considered As Close Relatives?

The following are considered to be close relatives:

• Husband and Wife
• Father (Provided that the term “Father” includes step-father)
• Mother (Provided that the term “Mother” includes the step-mother)
• Son (Provided that the term “Son” includes the step-son)
• Son’s wife
• Daughter
• Daughter’s husband
• Brother (Provided that the term “Brother” includes the step-brother)
• Sister (Provided that the term “Sister” includes the step-sister)

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Summing Up

The economic relationship between India and the UK remains strong and vibrant. The arrival of students in the UK has played a key role in boosting remittances. After the pandemic, increased disposable income and easier access to loans contributed to this trend. The demand for high-quality education and other opportunities overseas continues to fuel the remittance market.

In this regard, moneyHOP stands out as a partner offering transfers to the UK with competitive rates and near-zero charges. This ensures that the financial and cultural ties between these two nations remain strong over time.