As an NRI, you may need to send money to India at some point while living abroad. Whether you're sending money to friends or family or transferring funds overseas to manage finances back home, there are multiple ways to send money to India. Listed below are some of the options you have to transfer money to India as an NRI.
1. Money Transfer Companies
Money transfer companies offer a variety of money transfer services, including options to send money to India. They offer a secure, fast, and inexpensive means of sending money from the US to India and often come with many benefits such as better exchange rates, lower transfer fees, and excellent customer service. There are many money transfer companies to choose from, and you can select the company best for you based on their exchange rates, fees, and other features.
For a list of reputable money transfer companies you can use to send money to India, view our suggested remittance companies.
2. Wire Transfer
Wire transfers are very common for international money transfers and most banks in the US offer wire transfer services. With a wire transfer, the funds are transferred directly to any foreign bank account and usually only take a few days. Wire transfer service charges vary from bank to bank, so check the fees of a few different banks before selecting one.
3. NRI and NRE Accounts
NRI and NRE accounts are a trusted and efficient way to send money to India. To send money to India through an NRI/NRE account, first you must open an NRE account. With this method, you can deposit USD in your account in the US, and the authorized recipient back in India can withdraw the amount in Indian rupees. The transaction process usually takes about a week and is non-taxable.
Most banks in India provide NRI/NRE account facilities, and few provide online services. Some banks that provide money transfer services through NRI accounts include SBI, CITIBANK, HDFC.
4. Personal Checks
You can write a personal check to the recipient who can then deposit it in their bank account back in India. However, some banks do not accept foreign checks, and even if they do, there is usually some delay in cashing the check since the bank must verify the deposit. The recipient may also be required to pay a fee to cash the check.
5. Cashier's Checks, Money Orders, and Bank Drafts
All of these options may be purchased through a bank. Although there are fees to purchase, they are much less expensive than wire transfer fees. With cashier’s checks, money orders, and bank drafts, you purchase the amount you want to send in the currency of the country the recipient is in, in this case, India.
With money orders and bank drafts, be sure to make a copy of the money order or draft and keep it in your records.
6. Bank Draft in Indian Rupees
SBI (State Bank of India) and Citibank have the facility for bank drafts made in Indian rupees, which can be cashed instantly in India. SBI draft is free if the amount is more than Rs 50,000. Otherwise, a flat charge of $10 may apply.
Money Transfer Tips and Related Information
To learn more about various different ways to send money to India, please visit Different Ways to Send Money to India.
Information for Indian banks and their US branches:
With any money transfer method, be sure to obtain receipts of your transactions. In case of any delays or errors in your transactions when sending money to India, you can always contact the bank or money transfer company for assistance.
Each of these methods varies in their fees and transaction process. You can research the best method for you by comparing exchange rates, transfer fees, and processing time to select the money transfer option that best fits your needs.
Some of these methods also work for sending money abroad to other countries, and not only India.