Ibrahim Gardner
International students often face challenges when sending money to India due to higher transfer fees, unfavourable exchange rates, and a lack of awareness about reliable transfer methods. However, with new technologies, there are now various options available for seamless and cost-effective international fund transfers. This includes traditional bank transfers, online wire transfers, Unified Payment Interfaces (UPI), and specialised services like Instarem and Flywire. Understanding the remittance rules and guidelines set by the Reserve Bank of India (RBI) is crucial, especially for students with NRI status. Additionally, comparing exchange rates, considering student discounts, and staying mindful of transfer limits can help international students optimise their money transfers to India.
| Characteristics | Values |
|---|---|
| Can international students send money to India? | Yes |
| Common methods | Online international fund transfer services, bank transfers, Unified Payment Interface (UPI) transactions, wire transfers, foreign currency cheques, international money orders |
| Considerations | Exchange rates, transfer fees, transfer limits, speed of transaction, security, student discounts |
| Platforms | Instarem, ICICI Bank, Western Union, Remitly, Wise, Scotiabank |
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What You'll Learn
Online money transfer services
International students can send money to India through various channels, and online money transfer services are one of the most common methods. These services offer a convenient, digital way to transfer funds across borders. Here are some of the key providers and their features:
Wise
Wise (formerly known as TransferWise) is a popular online money transfer service. It offers low fees, starting at 0.1%, and allows users to send money to bank accounts worldwide. Wise provides a secure platform with two-step verification and industry-leading security systems. It also offers predictable exchange rates, allowing users to lock in rates for up to 48 hours. Wise is a fast and convenient option, especially if the recipient also has a Wise account.
Remitly
Remitly is a fast and reliable online money transfer service, offering easy and secure transactions from the United States to India. It provides a user-friendly app and website, with transparent fees and competitive exchange rates. Remitly allows users to track their transfers every step of the way and choose from various delivery options, including cash pickup, bank deposit, and Unified Payment Interface (UPI).
Western Union
Western Union is a well-known international money transfer service that offers online and in-person transactions. It provides a free account creation option, and users can send money to over 70 countries, including India. Western Union offers fraud prevention measures and transfer tracking capabilities. While it handles various currencies, users should carefully compare transfer fees and exchange rates before initiating a transaction.
Instarem
Instarem is a money transfer service that is particularly popular among international students. It offers fast transactions, with most transfers completed within the same day. Instarem has no hidden fees, and it provides low currency exchange rates compared to traditional banks. It services over 60 countries, including India, and offers a user-friendly mobile app for convenient tracking of fund transfers.
Bank-Specific Services
Some banks offer their own international money transfer services. For example, Scotiabank Canada provides the Scotia International Money Transfer service, allowing customers to send money from eligible Scotiabank accounts to global bank accounts, including those in India. Similarly, ICICI Bank offers an international money transfer service, including wire transfers and Unified Payments Interface (UPI) transactions. These services can be convenient for customers who already have accounts with these banks.
When choosing an online money transfer service, it is essential to consider factors such as fees, exchange rates, transfer speed, security, and the specific needs of the sender and recipient.
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Bank transfers
International students in the US can send money to India using various methods, including bank transfers. Bank transfers are a traditional method of sending money to another country and offer a direct way to send money from a US bank account to an Indian bank account. This method is straightforward, but it often comes with higher fees and less favourable exchange rates than other options.
There are several ways to transfer money from a US bank account to an Indian bank account. If your US bank is part of the SWIFT network, you can transfer money through SWIFT. You can also use the telephonic or wire transfer facility, where the Indian bank will have correspondent banks through which the transfer takes place. Wire transfers done through a bank branch often offer a higher transaction limit than online remittance channels.
Another option is to send a cheque or demand draft to a branch of your bank in India, along with a letter containing instructions and the relevant account details. You can also use a third-party money transfer service, such as Zolve or Instarem, which offer competitive exchange rates and no hidden fees. However, it is important to compare different transfer services and understand all the costs involved before making a transfer.
It is worth noting that, as per the Liberalised Remittance Scheme of the Reserve Bank of India (RBI), there is a limit of USD 1,000,000 per year for international fund transfers by a non-resident Indian (NRI) and a limit of USD 250,000 per year for resident Indians. Individuals who need to transfer a higher amount must seek permission from the RBI. Additionally, any taxes collected at source (TCS) by the bank or authorised dealer when a resident Indian remits money under the LRS may vary depending on the purpose and amount of the remittance.
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International money orders
In the last decade, several electronic alternatives to money orders have emerged and have become the preferred cash transmission method in some cases. However, money orders remain a popular option, especially in rural areas where banks may not be conveniently accessible or where many people may not use a bank account.
In the United States, money orders are easy to obtain and are sold at post offices, grocery stores, and convenience stores. Some financial service companies, such as banks and credit unions, may not charge their clients for money orders.
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Foreign currency cheques
International students can send money to India through various channels. One of the most common methods is through online international fund transfer services. Bank transfers are a traditional method of sending money to another country, but it may take several days for the transaction to complete.
HDFC Bank offers foreign currency cheque services in 20 foreign currencies. The bank does not specify which currencies are accepted.
To deposit a foreign currency cheque into an ICICI Bank account, you can approach any ICICI Bank branch. You will need to submit the cheque along with a signed Indemnity Letter cum Deposit Slip. The money will be credited to your account within 8 to 40 international working days.
For cheques up to USD 10,000 or its equivalent, ICICI Bank offers credit within 15 international working days from when the cheque is lodged by the Remittance Unit. For GBP cheques of over GBP 10,000 for individual customers and GBP 50 for non-individual customers, ICICI Bank offers credit within 15 international working days from when the cheque is received by the correspondent bank in the UK.
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Transfer platforms like Instarem, Wise, Remitly, or Western Union
Instarem
Instarem is a student-friendly international money transfer service that offers fast, secure, and affordable transactions. It is available in over 60 countries, including India, and provides competitive exchange rates for popular currency pairs like USD to INR, SGD to INR, and AUD to INR. Instarem's fees are based on a percentage of the amount transferred, which typically ranges from 0.25% to 1%. It offers 24/7 customer support and robust verification processes to ensure the safety of client funds and information.
Wise
Wise is a well-known platform with a strong reputation and many positive reviews. It offers a simple and accessible way to send money, pay for transfers, track transfers, and view historical transfers through its app and website, which supports 12 languages. Wise processes its rates at the mid-market rate, and while it may have higher fees, it is still a popular choice due to its transparency and competitive overall rates.
Remitly
Remitly is a trustworthy platform that consistently offers better rates than its competitors. It provides fast delivery, completing transactions in a few minutes for existing accounts, and has fixed fees of $1 for bank ACH transfers.
Western Union
Western Union is a reliable platform for sending money to India. While specific details about their services are scarce, they are mentioned alongside other reputable transfer platforms, indicating that they are a trusted option.
When choosing a transfer platform, it is essential to consider factors such as exchange rates, transfer fees, delivery speed, security, and reliability. Websites like CompareRemit allow you to compare these factors across different platforms to help you make an informed decision.
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Frequently asked questions
Yes, international students can send money to India through various channels, including online money transfer services, bank transfers, Unified Payment Interfaces (UPI), and wire transfers.
There are several reliable and secure methods to send money to India, including:
- Online international fund transfer services, such as Instarem, which offer fast transactions, low fees, and competitive currency exchange rates.
- Bank transfers are a cost-effective option but may take several days to complete.
- Unified Payment Interfaces (UPI) offer faster transactions but may have limitations in sending money overseas.
- Wire transfers are another traditional and secure method.
Yes, there are a few guidelines set by the Reserve Bank of India (RBI) under the Liberalised Remittance Scheme (LRS) that international students must follow. Students are considered Non-Resident Indians (NRIs) from the date they leave India and are eligible to receive up to $200,000 per financial year from relatives for maintenance or studies. There is no limit on the amount that can be remitted towards fees, but the fee payable to the foreign university is typically required to be remitted from India.
When sending money to an international student in India, you will typically need to provide the following information:
- Payer name and address: This information is mandatory for compliance purposes and must match the bank records.
- Student ID: The institution may require this to allocate the funds to the correct student account.
- Purpose of the transfer: You may need to specify whether the funds are for tuition, living expenses, or other purposes.
- Documentation: Original documents such as identity proof, residency proof, admission letter, and bank statements may be required.
