The overseas fund transfer facility, also referred to as remittance, can be availed by both resident and non-resident Indians as well as foreign nationals working in India. That said, besides bank’s wire transfer, online money transfer service providers as well as cryptocurrency can be used to transfer money from India to the U.S.
Remittance service to the U.S. usually takes up to two working days, depending on the time taken for authorization to transfer. Moreover, there are applicable charges as well as documentation to ensure that the transaction takes place efficiently.
Here are the different modes of transfer available, documentation and charges applicable, as well as other things one should consider while sending money from India to the U.S.
Best Ways To Send Money From India to the U.S.
It is important to compare the fees and exchange rates of different service providers to find the most cost-effective option to send money from India to the U.S. The popular ways to transfer money are as follows:
Bank Transfer/Wire Service
Individuals can use their Indian bank account, or even credit cards, via online or offline method to transfer money to the U.S. Account holders can download and fill-up the remittance form available both online and offline and submit relevant documents (just like mentioned below) to send money.
Depending upon the bank’s cut-off time, and time taken for transfer authorization, money is remitted within the same day, or maximum within two working days.
Online Money Transfer Services
There are various online money transfer service providers, like PayPal and Wise, who offer a quick way to transfer money to foreign countries. They offer competitive rates to transfer money, which vary among providers, exchange currency, as well as the amount being sent.
Cryptocurrency Transfer
Individuals can also send money to the U.S. using cryptocurrency, such as Bitcoin or other digital currencies. In such a money transfer, a peer-to-peer crypto wallet is used by both sender and a receiver who can either hold the value in their wallet or cash it out to the U.S. dollar (USD) using an exchange.
How Much Money Can Be Sent to the U.S. from India?
The Reserve Bank of India (RBI) under the liberalized remittance scheme (LRS) has defined the maximum amount that can be sent from India to foreign countries. While transfers processed through online or mobile app channels cannot exceed USD 25,000 or its equivalent, remittance limit per type of account is as follows:
How to Convert INR to USD?
Every remittance service provider offers an easy way to convert INR to USD, or any other currencies, using an online currency calculator. This facility is also available at the bank or money service providers’ branch. Sender only needs to submit the amount they wish to transfer, and the calculator gives an exact prevailing rate. Using currency exchange, the sender can convert the cash into USD, however, charges are applied (like mentioned below).
Related: USD To INR Forecast: U.S. Dollar To Indian Rupees.
Documents Required to Transfer Money from India to the U.S.
The documentation process varies among service providers as well as the mode of transfer such as bank transfer, online transfer. While account holders do not need to submit their documents, non-account holders will have to submit a photocopy of a PAN card.
Here are the basic details every service provider asks to transfer money from India to the U.S.
Beneficiary Details
Name
Account number
Address
Country
SWIFT Code
An eight to 11 digit unique code, which identifies the receiving bank’s details—bank name, address, country code, and branch code. Swift code instructs the overseas bank about the incoming payments.
Routing Number
A nine-digit code used to identify the details of the sender’s bank, which can be found on cheque leaves. A routing number can also be found on bank’s websites, or mobile applications.
Note: Some service providers may ask for additional documents, or information on the purpose of transfer, to complete the transfer.
Charges for Sending Money from India to the U.S.
Fees charged by lending institutions vary among banks, or money transfer service providers, as well as the amount being sent, offline or online mode of transfer, etc. Service providers have to disclose all charges and fees associated to transfer money from India to the U.S. Here are the two basic charges that will be applicable for sending money to the U.S.
Foreign exchange markup: While sending money from India to the U.S., or any other countries per se, a markup on the exchange rate is applied, and this fee varies among banks and money transfer service providers as well as the amount being transferred.
Money transfer fees: This fee is typically a percentage of the amount being transferred, and varies as per the mode of transfer such as bank transfer, online transfer, or wire transfer.
It is important to compare the fees and exchange rates of different service providers to find the most cost-effective option.
While goods and services tax (GST) is levied in each service, providers may as well charge a commission fee for offline transfer via branch.
Frequently Asked Questions (FAQs)
How much money can resident Indians send to the U.S?
As per RBI’s guidelines under the liberalized remittance scheme (LRS), a resident Indian can send up to $250,000 in a financial year.
How much money can be sent from an NRE account?
There is no limit on the amount to send money to the U.S. using NRE accounts.
What are the charges for sending money to the U.S. from India?
The two major charges for sending money to the U.S. are foreign exchange markup, and money transfer fees.
What are the different modes of transfer to send money from India to the U.S?
The popular ways to transfer money from India to the U.S. are by using bank transfer or wire service, online money transfer service providers, as well as cryptocurrency transfer.
