How to Send Money from India

Sending money from India to another country, known as an outward remittance, is subject to stringent government regulations and tight currency controls. However, it is possible if you know what the Indian government considers acceptable. You must select a method of remittance and ensure that your transaction complies with any applicable regulations.

Part 1 Choosing a Method of Remittance

1. Go to a bank. Many banks will allow you to remit money abroad by visiting a branch and filling out an application. The methods of remittance you can use with this method may be limited. For example, you may be able to apply only for a wire transfer or a Foreign Currency Demand Draft (FCDD). You may also be required to have an account at the specific bank. Whether you have an account or not, be prepared to:

Display proof of identification, such as a passport.

Provide information about the recipient of your funds, including an account number to which the funds will be transferred.

Display evidence of the purpose of your remittance, such as an invoice.

Select an account (checking, savings, etc.) from which to transfer your funds.

2. Make use of an online banking service. You may be able to remit money online if your bank provides online banking services. Log in to your bank’s online service and search for the “transfer” or “remittance” option. You will be required to provide information about the recipient of your funds (including an account number to which the funds will be transferred) as well as proof of the purpose of your remittance, such as an invoice.

3. Employ the services of a third-party transfer service. Money2World, PayPal, and Book My Forex are examples, as are services provided by some banks to non-account holders. These are subject to a monthly transaction limit of $25,000 USD.

If you do not have an account at the institution making the outward remittance, you must provide proof of identification and residency (such as a passport).

You will almost certainly be required to go through a one-time registration process that will record your account number and other personal information. This information will be used to verify the remittance as well as any future remittances.

In addition, you may be required to register and verify the recipient of your remittance. This is done to protect the security of your fund, prevent fraud, and make future remittances easier.

You will most likely have to wait a short period of time (such as 24 hours) after registering with a funds transfer service before you can use the service for an outward remittance.

4. Send a remittance in a foreign currency, such as US dollars (USD) or euros (EUR). Outward remittances in rupees are subject to stricter restrictions than those in foreign currencies. You can have money sent to you from India in a foreign currency, such as USD or EUR, as long as you have access to it through a checking or other account. These foreign funds can then be transferred using a variety of methods, such as wire transfers and checks.

Prepare to provide proof of the purpose of your remittance, such as an invoice, if requested.

Foreign currency can be purchased from a variety of banks as well as private currency exchanges.

You can also send money in a foreign currency using an FCDD (available at many banks and financial institutions), but this will be converted from rupees and thus subject to the Indian government’s restrictions.

You should be aware that each remittance transfer service provider has its own exchange rate. It means that Western Union’s exchange rate differs from the real mid-market rate. You could use a price comparison website to learn about hidden fees.

Part 2 Sending Funds

1. Ascertain that the funds will be used for a suitable purpose. Typically, outward remittances are restricted to specific purposes. In addition, you must provide proof of the purpose, such as an invoice, bill, or debit note. The invoice or other document must bear the same name as the account for which the remittance is being requested. You may send money from India if it will be used for one of the following purposes:

Education expenses

Emigration fees


Care for a close relative

Medical treatments

Visa fees

Police verification

Visits abroad for private purposes

2. Maintain a reasonable level of outward remittances. Most money transfer services have limits on how much money can be sent from India. The limit for most purposes (referred to as “Small Value Remittances”) is $25,000 USD per fiscal year.

The Liberalized Remittance Scheme is an exception, allowing Indian residents to send up to $125,000 USD per fiscal year to purchase shares or debt investments in a company abroad.

You can remit up to $100,000 in medical expenses, plus more if a doctor estimates a higher cost.

If you are an Indian resident, you may send up to $100,000 per fiscal year for medical, educational, employment, familial, or emigration expenses. This programme is not open to corporations.

Non-resident accounts are not subject to these restrictions.

3. Decide how the money will be distributed. In most cases, there are multiple ways to send money to a beneficiary via outward remittance. Fees for remittances vary depending on the type of service used and the amount of money remitted. Typical examples include:

Transfer of funds via wire. This method transfers funds from one account to another in the amount you specify in your currency, quickly and electronically. Although the fees for this service are relatively high, it is the best option when you need to send a specific amount in your currency.

A Foreign Currency Demand Draft (FCDD) sends a specific amount in foreign currency and withdraws the equivalent amount in your currency from your account. Funds could be delivered as soon as the following business day. The most commonly used foreign currencies are US dollars and euros; however, your bank may offer FCDDs in a variety of other currencies. FCDDs have lower fees than wire transfers and are the best option when sending a specific amount in a foreign currency.

4. Allow the funds to be deducted from your account. If you have an account with the bank or service that is processing your outward remittance, the funds will be withdrawn from the account you specify. If you are a non-accountholder, you must make a payment for the funds that you wish to remit via check, draught, or cash deposit.

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