Best way to send money to India 2024

According to the Ministry of External Affairs of the Government of India, there are around 13.6 million non-resident Indians (NRIs) residing outside India. Moreover, there are over 18.6 million Persons of India Origin (PIOs), making the Indian diaspora the world’s largest diaspora, according to the United Nations (UN). PIOs are foreign citizens who had held an Indian passport at any time or they or their parents/ grandparents/ great grandparents were born in India.

With such a humongous population residing in all parts of the world and most of them having close roots back to the country, it can be easily said that transferring money to India is very common. Let us look at some important statistics to analyse the overseas money transfer landscape in the country.

Important Statistics at a Glance

• India was the top recipient of foreign inward remittance globally in 2022, receiving USD 111 billion. Flows to India grew by 24% in the said year[1].
• According to the data from the Finance Ministry, India saw a substantial increase of 26% in foreign inward remittances from NRIs compared to the previous year in FY 2023[2].
• As per the country-wise share in inward remittances data shared by the Ministry of Finance, the United States of America accounts for 23.4% of the total remittances share, followed by the United Arab Emirates at 18% share and the United Kingdom at 6.8% share of the total remittance in 2021[3].
• Foreign inward remittances account for a significant 3.3% of India’s GDP, according to the World Bank Data[4].

Regardless of the reason for sending money to India, be it supporting your loved ones financially, or investment purposes, the need to know about the best way to send money is essential. In this comprehensive guide, we shall discuss the prime reasons for transferring money to India, key factors to remember while transferring, some quick tips to save money on transactions and the best way to send money to India in 2024.

Top Reasons to Transfer Money to India

With the world being interconnected like never before, there are various reasons people send money overseas. Some may send to support their family and friends, travel or education, invest in foreign countries, etc. Here are a few reasons that made India the top recipient of foreign inward remittance globally in 2022.

• Supporting loved ones: With more and more Indians working abroad, most may have a family to support back home. This could include paying for their daily needs, education, healthcare needs, or any other financial help.
• Businesses: Many multinational companies have their base or offices in India, which is undoubtedly one of the major players in international trade. Hence, if your business is in India, you may send money internationally, the salaries to the workforce, the rent and other expenses.
• Investing: Apart from being one of the largest growing economies in the world, India also offers immense and profitable investment opportunities. Whether it is the stock market, real estate market or investing in smaller businesses, India provides a host of avenues for NRIs.
• Studying in the country: India offers a world-class education system, which has gained immense popularity in recent years. In fact, the number of foreign students coming to India has increased from 34,774 in 2012-13, to 49,348 in 2019-20, according to seven years data from All India Survey on Higher Education (AISHE), as published by The Print Many international students flock to India for education purposes. The country receives inward remittance from these students in the form of tuition fees, accommodation and other expenses.
• Travelling: The country is famous for its diverse and vibrant culture which has always intrigued individuals across the world. When travellers come to India, they are a source of inward remittance to the country, and in most cases, the payments are done internationally.

Also Read: NRE vs. NRO account

Methods for Transferring Money to India

NRIs, as well as other individuals, find money transfers complex and confusing, mainly because there are multiple ways to send money internationally. There are several ways to transfer money to your NRE account or to any other recipient. Here are some of the best ways to send money to India.

Wire Transfers

Wire Transfer is one of the most common ways to send money to India. It is an electronic transfer of funds from one entity to another using a network like the Society for Worldwide Interbank Financial Telecommunications (SWIFT). Wire transfers to India are safer options, especially for larger transaction amounts. They can be done either through bank or transfer agencies. Your bank will charge a fee depending on the amount, and funds are transferred to the recipient within a few days.

Online Bank Transfer

Online bank transfers offer an easy way to transfer money to India. You simply need to enter a few details of the recipient and the financial institution to make the transfer.

Foreign Currency Checks, Bank Drafts and Money Orders

These are traditional ways of sending money to India wherein you can write a foreign currency check and send it to the beneficiary via mail. When the recipient deposits this check in the bank’s overseas branch, the account gets credited.

Also Read: What is LRS – liberalised remittance scheme

Online Money Transfer Companies

Transferring money through online money transfer companies is one of the easiest and fastest ways to send money to India. These companies offer various money transfer services that are flexible, convenient and cost-effective. Many individuals now prefer using these transfer methods as they offer better exchange rates and are low on cost. In fact, online money transfer companies offer one of the cheapest ways to send money to India.

Traditional Banking Methods vs. Online Money Transfer Services

When making international money transfers, banks and online money transfer services can carry the task since they both offer this service. However, when choosing between the two, you must consider various aspects. Let us look at some of the factors that differentiate the two methods.

Key Factors to Consider When Transferring Money to India

For many NRIs living abroad, transferring money to India is a regular affair. If you are new to sending money to India, here’s a checklist of things you must consider before making a transfer and shortlisting the best apps to send money to India.

• Keep watch on the exchange rates when transferring funds from abroad to India.
• Ensure you read the fine details. This will help you spot fees and hidden charges, if any. Look for discounts and go for quality yet affordable services.
• Always look for a trustworthy transfer partner which is regulated and licensed with a presence in multiple countries. Always do a background check on security issues before choosing an online money transfer provider.
• Remitting time or the transfer time plays a crucial role. Most online transfer providers have a short turnaround time. However, it may depend on factors like currency you are dealing with, difference in time zones, missing information, any major global event, etc.
• Convenience is one of the key aspects that you must look out for. An easy, hassle-free process in terms of account opening and doing the transaction is always preferred.
• Having a point of contact with your service provider is always helpful. Since online transactions do not have human interaction, in case of any problem, you should get through the provider’s customer support easily.

Best Ways to Send Money to India in 2024

In order to help you decide the best money transfer option, we have shortlisted the 5 best apps to send money to India. The below data considers transferring money from the US to India. Hence, the service providers offer the best way to send money to India from the USA.

Instarem

Instarem is a Singapore-based cross-border money transfer service provider offering fast*, affordable#, and secure transfers to more than 60 locations, including India. It is one of the best apps to send money to India. With zero fees, Instarem also offers the best rates to send money to India.

Key features:

• Competitive exchange rates
• Multiple payment options
• Earn reward points

Wise

Wise, previously known as TransferWise, is an online money transfer provider with its headquarters in the United Kingdom. The provider has earned its place as one of the best alternatives for wire transfers to India.

Key features:

• Real-time exchange rates
• Multiple payment options
• Dedicated customer support

Xe

Xe is an online money transfer service provider based in Canada that offers money transfer services to India at a low cost and competitive exchange rate. The company offers various added services and has a user-friendly interface that makes money transfer easy.

Key features:

• Multiple payment options
• Low-cost
• Large transaction amount
• Live exchange rate tracking

CurrencyFair

CurrencyFair is an Ireland-headquartered online cross-border payment company offering services to customers across the globe.

Key features:

• Fast and reliable transfers
• Secure platform
• Easy-to-use interface
• Bank-beating foreign exchange rates

WorldRemit

WorldRemit is a digital cross-border remittance business serving over 5.7 million customers across 130 countries. This authorised and regulated money transfer company also offers various payment options.

Key features:

• Quick transfers with tracking facility
• Secure platform
• Affordable
• Multiple payment options

Also Read: Why Instarem is the best option for sending money safely to India from the USA

Why Instarem Stands Out

Instarem is one of the leading money transfer services revolutionising the money transfer process. With just a few clicks, you can send money to India from anywhere, anytime. Let us look at some of the benefits of Instarem that make it stand out from its peers.

• If you are looking for one of the affordable  ways to send money to India, Instarem can be the right choice. Instarem offers you competitive, bank-beating exchange rates. We offer complete transparency and no hidden charges.
• It is one of the best apps to send money to India. The app is convenient, easy to navigate and allows you to start the transfer process in just a few clicks. You can keep track of the transaction and even cancel it if it is pending.
• Instarem is one of the best ways to send money to India for both personal and business transfers.
• Each Instarem transaction rewards you with InstaPoints, which you can redeem as discounts in future transactions, making the overall experience more rewarding.
• With over 66 supported locations and licensed and regulated in 11 countries, Instarem is the best way to send money to India in 2024.

Try Instarem for your next transfer.

Download the app or sign up here.

Also Read: 10 best countries to migrate from India

FAQs

Q1: What is the best way to send money to India?

The best way depends on your preferences and priorities. Online money transfer services are swift, while bank transfers offer reliability. Evaluate based on your needs.

Q2: Are digital wallets secure for international transfers?

Yes, reputable digital wallets employ encryption and security measures. Ensure you use a trusted service and follow recommended security practices.

Q3: How long does it take for a bank transfer to reach India?

Bank transfers may take 2-5 business days, depending on the banks involved and any intermediate processing.

Q4: How do exchange rates impact the amount received in India?

Exchange rates directly influence the amount received in India during international money transfers. A higher exchange rate means the converted amount in Indian Rupees will be more, while a lower exchange rate results in a reduced sum. Therefore, understanding and monitoring exchange rates are crucial to maximize the value of the transferred amount.

Q5: Can I send money to India using cryptocurrency?

Yes, cryptocurrency transfers are gaining popularity. Ensure both you and the recipient are familiar with the process and use reliable platforms.

Q6: Can I track my money transfer?

Many digital platforms provide tracking features, allowing you to monitor the status of your transfer in real-time. Check with the chosen service for specific details.

Q7: What documents are required for international transfers?

Typically, you’ll need identification documents and details about the recipient. Compliance with regulatory requirements is crucial for a smooth transaction.

Disclaimers:

This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with products or vendors mentioned.

* Fast meaning 75% of our transactions are completed in 15 minutes. Depending on the funding method.

#When it comes to affordable exchange rates and fees, it’s worth noting that the cost will vary depending on how you choose to fund your transactions. Credit card funding and bank transfer fees can differ significantly. 

Transfer amounts (rates) for comparison are taken from respective money transfer websites on 01st November 2023, between 15:00-18:00 HRS IST 

 Reference Links:

[1]https://www.worldbank.org/en/news/press-release/2023/06/13/remittances-remain-resilient-likely-to-slow

[2]https://indbiz.gov.in/remittances-to-india-up-by-26-in-fy23-finance-ministry/

[3]https://pib.gov.in/PressReleasePage.aspx?PRID=1897036

[4]https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS