As an NRI, making regular transfers back home is probably a part of your routine. Be it to support your family, manage investments, or grow your wealth, you need a convenient medium.
Thankfully, you have access to various international transfer systems to make this process easier. Each option has its own set of requirements and levels of convenience. This article breaks down the different ways NRIs can send money to India.
Popular ways to send money to India as an NRI
You can choose from various money transfer options based on your speed, efficiency, and cost-effectiveness needs.
- Wire transfer
This is a highly preferred method for making international transfers. You can directly transfer money from your bank account abroad to an Indian account through the SWIFT network. It provides a trustworthy means and works greatly for larger amounts. The processing time and charges may vary across banks.
- NRE/NRO account
You can also open an NRE account or an NRO account to regularly send money to India. An NRE account lets you transfer foreign earnings, and an NRO account may also accept foreign transfers, subject to certain conditions. Check with the bank before using either of the NRI savings accounts for sending money to India.
- Online remittance platforms
As the demand for convenient international remittance solutions increases, many platforms have come up with competitive features. They are quick and easy to use but may attract a service fee. You can consider them for your everyday transfer needs.
- Demand drafts/cheques
A more traditional route is a foreign currency draft or a cheque payable in India. The beneficiary can present their foreign currency draft or cheque at their bank to have the funds deposited into their account. Note that the recipient may also incur charges upon encashing the cheque/draft, which can affect the total amount received.
- International money order
The Indian postal service offers this convenience service for sending or receiving money internationally. When you send an international money order, the recipient can collect it at designated encashing centres. This method is especially suitable for transferring smaller amounts when the recipient does not have a bank account.
Key aspects to consider before transferring money
Now that you know the different remittance options, you can pick the one that suits your transfer needs. Additionally, take a look at these key points to get the process right:
- Exchange rate
When the currency is converted, the exchange rate applies and can affect the total amount your recipient gets. Even a small difference in the markup against the rate can have an effect on larger transfers. Look at both the visible and hidden fees carefully prior to making a transfer.
- Transfer charges
Some service providers charge a flat fee, while others take a percentage of the amount you send. Compare options based on these charges to save as much as possible. You will get the details for each payment option on the service provider's portal.
- Speed of payment
While some platforms may process your transfer in minutes, others may take a few working days. For urgent transfers, you can send money through faster options like wire transfers. A SWIFT code is also required for an NRI savings account to expedite the transfer and reduce cost.
- Tax implications
If you're using an NRI account for transfer, the type of account being used matters. Opening an NRE account usually works great for sending money, as the interest on the account is not taxed in India. On the other hand, interest earned on an NRO account is taxable in India.
- Basic Details
You will require the recipient's basic details, like their full name, bank account information, contact number, etc. Additional information may differ based on the transfer method.
Final words
Given the various transfer methods, you have the flexibility to choose based on your
Now that you know the various transfer methods available, you can choose the one that suits your needs, ease of sending money, speed, service cost, and other factors. Although using an NRI account for sending money is an option too, it usually requires a joint account holder, or someone designated through a power of attorney to operate. Thus, it is mostly useful to support your family. For other recipients, you might want to explore other international remittance solutions.