Mar 18, 2025, Posted by Admin

How NRIs Can Easily Remit Funds to India: A Step-by-Step Guide

India has one of the largest diasporas globally, with over 10 million Non-Resident Indians (NRIs) living across various countries. Many NRIs regularly remit money to India to support
their families, invest in property or grow their personal savings.
Thanks to modern financial services, transferring money to India is now easier and more secure than ever. The best method depends on factors such as transaction speed, transfer fees, and convenience. Below, we explore some of the most common ways NRIs can send funds to India.
Choosing the right method to send money depends on factors such as speed, cost, and convenience. Below, we explore some of the most common ways NRIs can transfer funds to India.

Ways to Send Money to India

NRIs (Non-Resident Indians) can transfer money to India using various methods, depending on factors like cost, speed, and convenience.

Here are some of the most common methods, along with examples:

1. Bank Wire Transfer (SWIFT Transfer)

One of the most secure and widely used methods for NRIs to send money to India is through a wire transfer. This involves transferring money directly from a foreign bank account to an Indian recipient’s bank account using international banking networks like SWIFT (Society for Worldwide Interbank Financial Telecommunication). Wire transfers are especially useful for sending large sums securely, and while they are reliable, the process typically takes up to 48 hours for the money to be credited to the beneficiary's account.

How it Works: NRIs can send money from their overseas bank to an Indian bank account using the SWIFT network.
• Speed: 1–3 business days
• Cost: Banks charge a transfer fee, exchange rate margin, and sometimes an intermediary bank fee.
• Example: An NRI in the USA wants to send $5,000 to their parent's account in India.
They initiate a wire transfer via their bank, providing the Indian bank’s SWIFT code and account details.

2. Online Money Transfer Services

With the rise of digital financial platforms, NRIs now have access to fast and secure online money transfer services such as PayPal, Payoneer, and Payza. These platforms act as intermediaries, facilitating transactions between bank accounts, credit cards, and digital wallets. The process is user-friendly, often comes with transparent fees and exchange rates, and eliminates hidden charges. Depending on the platform and destination, transfers typically take one to two business days.

• How it Works: Digital platforms like Wise, PayPal, Remitly, and Xoom allow NRIs to send money online using debit/credit cards or bank transfers.
• Speed: Instant to 2 days
• Cost: Varies based on service provider, method (bank transfer, card, etc.), and exchange rates.
• Example: An NRI in Canada uses Wise to send CAD 1,000 to their sibling’s Indian account. Wise converts and transfers the money at a competitive exchange rate with transparent fees.

3. NRI Bank Accounts (NRE/NRO Accounts)

• How it Works: NRIs can transfer money from their foreign account to an NRE (Non-Resident External) account in India, which allows tax-free repatriation.
• Speed: 1–3 days (depending on the bank)
• Cost: Bank transfer fees and exchange rate margins apply.
• Example: An NRI in the UK maintains an NRE account with HDFC Bank India. They transfer £2,000 to their NRE account, which is converted to INR at the bank's exchange rate.

4. Foreign Currency Demand Draft (FCDD)

• How it Works: An NRI can request a demand draft in foreign currency from their overseas bank and send it via mail/courier to an Indian recipient, who deposits it in their Indian bank.
• Speed: 7–14 days
• Cost: Draft issuance fee and bank charges.
• Example:  An NRI in Dubai sends an FCDD in USD to their child studying in India. The child deposits it in their Indian bank, which converts it into INR.

5. Western Union/MoneyGram

• How it Works: These services allow cash pickup or direct bank deposits in India. The sender provides details, and the recipient collects cash from an agent or receives it in their account.
• Speed:  Instant to a few hours
• Cost: High transaction fees compared to other methods.
• Example:  An NRI in Singapore urgently sends SGD 500 to their relative via Western Union. The recipient collects the cash from a local Western Union agent in India within minutes.

6. Cryptocurrency Transfers

• How it Works: Some NRIs use cryptocurrency (like Bitcoin, Ethereum) to send funds, which are converted to INR via crypto exchanges.
• Speed:  A few minutes to hours
• Cost: Exchange fees and potential tax implications.
• Example: An NRI in Australia transfers Bitcoin to their friend's crypto wallet in India, who then sells it on an Indian exchange and withdraws INR.

7. International Money Orders

• How it Works: An NRI can buy an international money order from a post office or financial institution abroad and mail it to India, where it can be cashed or deposited.
• Speed:  7–14 days
• Cost: Issuance fee and exchange rate costs.
• Example: An NRI in Germany sends a €500 international money order to their parents in India, who deposit it into their bank.

Let's Compare the Right Method to Transfer Money to India.

Conclusion

For NRIs, sending money to India is easier than ever, thanks to multiple transfer options ranging from traditional wire transfers to modern online payment services. While wire transfers offer high security and reliability, online payment platforms provide speed and convenience. Choosing the best method depends on personal preferences, urgency, and the amount transferred.

Jain Anurag Associates, a trusted Chartered Accountant firm in Mumbai, provides expert advice on selecting the right transfer service for your needs. Our team ensures that NRIs can send money to their loved ones in India quickly and efficiently.

For personalized assistance, feel free to Contact Us today!

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