Make some cash available when you go to India to set up ...

[iFinancialAdviser]

Make some cash available when you go to India to set up a business operation

Many multinational corporations are setting up operations in India and also many small to medium size companies are setting up operations in India. There are number of difficulties that they face, and one of difficulties is to set up bank accounts in India and transfer money to their bank accounts from bank accounts in their home countries; having bank accounts in India becomes necessary at some point if they set up business operations in India. They cannot just use ATM cards to get cash, nor can they keep tens of thousands of dollars with them physically when they go to India; they need to transfer money from their bank accounts in their home countries. It seems very simple to do this, but in reality, this can become a bit tricky. Therefore, I highly recommend that those of you who go to India to set up business operations keep some cash in your bank accounts that you can access using ATM cards (preferably Visa and MasterCard ATM cards); otherwise, you can get stuck because you cannot get money from your new bank accounts in India. Here are some of reasons why you want to keep some cash.

It can take a couple of weeks to open a bank account in India, and obviously, there is no way for you to make use of the bank account before it opens. It only takes a day to open a bank account in US; it only takes a day to open even a business bank account. This is not the case in India. There is a rigorous review process, and this itself can take up to a week. If one of documents submitted is not created properly or if you need to take another document, then it takes a bit longer. Without the bank account, you obviously cannot transfer money from your home country to India.

It can also take a long time to transfer money from your home country to India, and there is no way for you to access the money being transferred until the transaction is completed. It takes about one week to wire transfer money, and this is the fast way to transfer money; however, this can take a lot longer than a week. It appears that banks in India check beneficiary bank accounts thoroughly before they credit those accounts. Also if there is any mismatch between the information about the actual beneficiary bank account and the information that you give to your bank, the wire transfer may fail and you may need to start the wire transfer from the very beginning again. Interestingly banks in US and many developed countries seem to be more relaxed in this regard, but banks in India are rigorous and thorough.

Another thing to note is that cash is required in many instances. Lately people make even very small purchases such as a cup of coffee using credit cards and ATM cards in US, but that is not the case in India. Also India is known for customs of bribing and exchanging gifts. Furthermore, a lot of people prefer not to create any records when they receive money so that they can avoid paying tax; even accountants often prefer not to create records. Because of these practices, cash is preferred in many instances; cash is actually *** required *** in many instances. This is why you want to have cash with you instead of a bunch of credit cards and ATM cards.

Cash is really the king in India. You can get things done using cash in India, but you cannot get things done in India without it in many instances. You need to get many things done shortly after you go to India as you set up a business operation, so get cash ready. Make some cash available when you go to India.
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