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Send Money To India

With such insightful statistics, it helps to know how diaspora Indians send money home, the information required to send and receive money, the benefits they enjoy by using money transfer services and the specific issues they should consider to find out the best way to send money to India.

Updated: 06/09/2022
Read time: 19 minutes
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How To Send Money To India

Looking to find out best way to send money to India? The steps are simple and easy. Read below to get started.

Step 1

Find a Trusted Provider

Our comparison table for sending money to internationally looks at your specific transfer needs to and from any country in the world. Use this to find a provider that provides the best all-round service for you.
Step 2

Register with your chosen provider

Most providers will be completely free to sign up to, simply requiring your name, address and contact information. In most cases, you’ll also need to upload a picture of a valid photo ID to verify your identity.
Step 3

Transfer Money

As soon as you're ready, you can start sending money online.

Ways To Send And Receive Money In India

There are multiple ways to easily send and receive money in India but these will largely depend on the provider you decide to use. Below you will find everything you need to know about the best ways to send money to India.

Sending Money To India
Receiving Money In India

Ways to Send Money to India

Traditionally, Non-Resident Indians (NRIs) have been using SWIFT and demand drafts to send money home. However, in recent years, banks have graduated to offering money transfer services, making it a booming business in India. About 60 to 80 per cent of the transfers to the country is processed through the banking system.

Online and mobile companies have also come up to offer money transfer services. This development has significantly changed the remittance landscape in favour of these companies. If you want to send money online to India, there are several ways you can do so, below are some of them:

Automated Clearing House (ACH) Transfer

Indians in North America, Australia, Asia, Europe and the United Kingdom who own verified bank accounts can use ACH transfer to send money home. ACH transfers take 3 to 4 days to reach your loved ones in India. This method is appropriate for small regular amounts. Since ACH transfer is online-based, you do not have to leave your home, thus saving you time and money.

Bank Wire Transfer

This method is one of the oldest ways of sending money. You’ll have to visit the bank and give instructions of where in India the money should be sent. Bank wire transfers take a few days to complete.

Money Transfer Companies

Money transfer operators such as TransferWise, Western Union, MoneyGram, WorldRemit, XE, Ria, Remit2India, Transfast, Remitly, Xoom, and others offer transfers services to India. These services account for 20 to 40 per cent of the money sent to the country.

Setting up is very easy. Most of these companies require that you sign up for an account and fund it. There are several ways of topping up the account including bank transfers, instore cash deposit, using debit and credit cards.

Once topped up, you can transfer to your loved ones online using a downloadable app, directly from the provider’s website, from a physical store or using SendBot for the case of MoneyGram. There are different options for sending through money transfer companies. Some of the top ways include:

  • Wire Transfer -You can deposit directly into the recipient’s account. This method works the same way as bank-to-bank transfers only that the cost of sending is much lower and the time shorter. Wire transfers are relatively safer and reliable when sending large amounts of money. For instance, you can send up to $1,000,000 to India via TransferWise.
  • Cash Pick Up – Here, the money goes to an agent of the provider from where the beneficiary can collect it. Money transfer service such as MoneyGram has a network of more than 36,000 agents in India that offer cash pick up. The money reaches the recipient in minutes.

International Money Orders

If you are sending small amounts of money to India, international money orders work perfectly well. They are safe, affordable, and you can get them from banks. You’ll have to purchase them in Indian rupees, the recipient’s currency. Though time-consuming, money orders are traceable and economical.

What’s Needed to Send Money to India

Before deciding on how to send money to India, there is some documentation and other information tats needed. The information varies depending on the provider and the country in question. That said, the following information will be required.

  • Your government-issued I.D.
  • The amount you want to send
  • The debit and credit card numbers for the cards you’ll use to fund the transfer
  • The name of the beneficiary as it appears on their official documents
  • The phone number and address of the recipient
  • If sending through the bank wire transfer, you’ll need the bank name, branch, account number, and routing number or swift code.

Instead of going to send with half the information, ensure you carry along all the above information before deciding on the best way to send money to India.

Common Reasons For Sending Money To India

In India, NRI remittances form an important part of the family and national income. There are lots of reasons why Indians in the diaspora send money to India. Looking at how households in India allocate the money they receive, the following are the priority areas:

Household Expenses

According to studies conducted in Uttar Pradesh, Kerala, and Karnataka, 59.2% of remittances were mainly for family expenses like food, rent and utilities. This trend was more pronounced in rural households receiving money from low-skilled diaspora Indians working in the middle east.

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The cost of education in India is very high and still soaring. Many families in rural areas struggle to keep their children in school compared to urban families. According to studies done, households receiving remittances spend an extra 17% in education.

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Health Care

The health care system in India is one of the most elaborate. However, there are still disparities between rural and urban health facilities and public and private health care systems. A survey done highlighting the impact of remittances on women health in Kerala shows that women receiving frequent remittances are likely to report increased health autonomy.

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Savings and Investment

Leveraging data from the Reserve Bank of India on private remittances, a study was conducted looking at the investment expenditure behaviour of remittance-receiving households. It was established that remittances from male and older immigrants are likely to be used for investment and asset accumulation. Most of the investments are in financial assets in SEBI approved Stock Exchanges, real estate, and in business.

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Debt Repayments

Whether it is mortgage repayments or other credit facilities taken to facilitate the relocation of the immigrants, part of the money sent home goes towards repayment of such debt obligations.

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Other reasons why Non-Resident Indians send money include contributions to social events such as weddings, religious ceremonies, and to cater for travel expenses.

Why Send Money With a Money Transfer Service? 

Money transfer operators in India use the cash to cash method more often (96.8 per cent) compared to the direct transfer to bank account option (1.5 per cent). Despite the banking system dominance (private, public, and foreign banks) the popularity of money transfer service providers is on the rise. The following are the reasons for this trend:

Ease of Set up

Signing up for an account, loading it with cash and sending to your loved ones, is simple. It takes a few minutes to get all setup. This level of simplicity is incomparable to banks and other institutions.

Favourable Exchange Rates

Money transfer service providers use the interbank rate also known as the mid-market rate. When genuinely applied, the mid-market rate is the most accurate and transparent. It reflects the real-time movements in currency market values. For future transactions, you can even lock the rate.

Lower Transaction Cost

With the expanded choices in the India remittance corridor, senders are looking for cost-effective channels.  Online money transfer providers offer the lowest per transaction charges. They spread their costs over a wide range of transactions enabling them to lower their fees without significantly affecting their bottom line. For instance, the cost of sending $200 to India from the United States using TranferWise is $2.71.

Speed of Transfers

The transfer time is much shorter with money transfer operators. For instance, sending from the United States to India on WorldRemit takes at most 10 minutes. During crises and emergencies, speed is of the essence to senders.

Supports Different Countries and Currencies

Money transfer services such as Western Union has over 500,000 locations in 200 countries and territories. Such a network ensures every corner of the world is covered. Irrespective of the country you are in, these providers will find a way of helping you to send money to your family.


With top of the class technologies such as 3D Secure and other digital authentications, parties are assured of safety and peace of mind when sending money online. Cybercrime is a real risk, but emerging technologies are also hard to beat.

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Things to Consider When Sending Money to India

Other than the speed, costs, and reliability, there are certain aspects you must consider when sending money to your loved ones back home.

  • Sending Limits and Taxes – When sending money to your ‘blood relatives’ in India, including gifts, you don’t pay any tax. However, when sending money to friends, any amount above $700 or 50,000 Indian rupees, is treated as income and taxed. 
  • Depreciating Indian Rupee – The rupee is under pressure from rising oil prices, widening current account deficits and capital flight from exiting foreign investors. This development has made the rupee to lose against most currencies. Economic circumstances like these create an opportunity for better value in rupee terms for remitters.
  • Falling Property Prices  – Major cities in India like Mumbai, Chennai, Delhi, Hyderabad, and Bengaluru are experiencing piling inventories and slack demand in real estate properties. Non-resident Indians can take advantage of this trend and invest in this lucrative industry. 

Therefore, whether you are sending money to your loved ones in India for household expenses or investment, using money transfer service providers is the best option. They are fast, efficient, affordable and flexible. As long as you know the recipient’s details and what else you need to provide, you can send money online to India in minutes!

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Looking to Send Money Somewhere Else? 

Sending money anywhere else in the world is as easy as sending money to India. If you’re looking to send money to another country, here is the list of the most popular destinations.

Jonathan Merry

Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com