Transfer money from India| North Loop Official Blog
North Loop Logo
North Loop
14 Dec 2020

Transfer money from India

thumbnail for Transfer money from India
Credit: North Loop

Transferring money from India can often involve a lot of hassle as you would have to furnish a long list of documents and shell out a lot of money in the form of fees and charges. Moreover, the various restrictions imposed by the government on foreign exchange can make money transfers even more difficult.

However, as of late, there are various means of transferring money abroad from India and you can have the amount remitted overseas within just 24 hours. Choosing a method of remittance can become confusing at times, and in this article, we explain the various methods of sending money from India.

Factors to consider when selecting a type of remittance-

1. Exchange rates- One of the most important factors to consider while choosing a remittance option is the exchange rate. Check whether you’re getting the best exchange rate or not. Some forex options charge high fees and provide relatively lower exchange rates but make up for it in terms of speed of transfer.

2. Fees- Compare different remittance options and see whether the option you’ve shortlisted charges the lowest transfer fees or not.

3. Speed- Make sure that you’re not paying an exorbitant amount in the form of transfer fees and associated charges at the cost of transfer speed.

4. Security and Convenience- Ensure that the method of money transfer is secure and convenient for you.

Types of remittances-

1. Banks- You can transfer money abroad from a bank, and some banks only facilitate the same as long as you’re an account holder with them. Although overseas remittances through a bank are safe, they can often charge very high fees and can be stressful as they involve a lot of paperwork. Banks would also require you to produce a long list of documents such as an Aadhaar card, Pan Card, Passport, recipient’s information, proof of purpose of remittance, etc. You would be able to send money in the form of wire transfers or Foreign Currency Demand Draft (FCDD).

2. Forex Companies- Physical Forex Companies such as Western Union converts your domestic currency to foreign currency and issues it either as cash or remits the same in the form of a money order. Note that the transfer speeds may be higher than banks but these companies may charge heavy fees and extremely high FX makeups. You may also have to provide proof of remittance to comply with the Indian foreign exchange regulations.

3. Third-Party online overseas remittance services- Third-Party overseas remittance services such as MoneyGram, Remit2India, and North Loop. You would have to register with these platforms, which would later on store your information for ease of access and seamless transfers. You would have to provide just basic documents such as proof of identities, residence, etc. The fees charged by these services are also relatively low while providing security and quick transfers.

4. Online Bank Remittances- You would be able to transfer money abroad through online services provided by a majority of banks in India, provided you’re an account holder with the bank. However, you would have to furnish some details about your recipient as well as your details along with the proof of purpose of transfer such as an invoice. Note that this mode of transfer can prove to be costly as banks charge high fees and various hidden charges. Even the exchange rates provided would be relatively low through this mode.

Guidelines to follow while sending money-

You may be able to send money abroad only if the purpose of remittance is to meet education expenses, emigration fees, maintenance of close relatives, medical treatments, etc. The RBI also limits various international fund transfers unless it falls under the provision known as the LRS (Liberalized Remittance Scheme). This scheme allows Indian Residents to send up to $250,000 or its equivalent per annum per person. You would also have to provide proof of the purpose of remittance such as a debit note or invoice to go ahead with the transfer.

Nolo Remit by North Loop is a service that allows you to transfer money abroad at lightning-fast speeds. All money transfers are protected with CurrencyProtect, which insures your transfers against exchange rate fluctuations. North Loop also provides the best exchange rates and all fees are transparent. Click here to learn more about Nolo Remit.

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.