Do you need to transfer money to India but the banks are taking way too long? The fees are piling up pretty quickly? This is why using an FX company is the better choice for you, but also for the receiver as the money will arrive at the destination within 2 days, compared to the banks delivery time of 5-7 days. Most of our recommended Foreign Exchange companies have free or very low-cost transfers for India. Check them below and start sending money the cheaper way.
Best Company To Transfer Money To India
* Theses are not rates provided to us directly by the companies compared. These are merely estimations we made based on our research. The real rates can be found in each providers’ website.
Now you can exchange your money into Indian Rupees with CurrencyFair
Getting paid with Payoneer
If you work for international clients and what to be paid quick and easy but still have low fees for transfers, be sure to give Payoneer a try. You will be issued a MasterCard card and you can withdraw money from any ATM in India.
Best Company to Transfer Money from India
|Min. Transfer: £ / € 1.|
Transfer: Online or using the App.
Why Them? Client Rating: 9.6/10.
Today’s Foreign Exchange Rates for INR
Indian rupee behaviour
Relatively high inflation and trade deficits give the rupee an underlying weakening bias. The currency is influenced strongly by global risk conditions with shifts in international oil prices also important.
The Reserve Bank of India (RBI) sets the level of interest rates to control inflation. The rupee will strengthen when the RBI is tightening policy to control inflation and tend to weaken when the bank is cutting rates.
The RBI has gradually lowered the inflation target and, from fiscal 2016/17, there is a medium-term target of 4% with a range of 2-6%. The inflation target is higher than most OECD economies and the rupee will tend to weaken slightly over the medium term although the overall pace of depreciation should be slow.
India runs substantial trade deficits and the current account has also been in deficit over the past five years. India is very dependent on crude oil imports. The trade account weakens when oil prices are high and the rupee is also more vulnerable when energy prices are high.
Given high nominal interest rates, the rupee moves are strongly linked to global risk appetite. When confidence is high substantial capital inflows will boost the rupee, with the threat of reversal when global confidence deteriorates. The currency is very vulnerable in the event of a strong US dollar and rising US interest rates.
Send Money To India Bank Account
The Indian Rupee is a well known and highly distributed currency around the world mainly because of the approximative 30 million Indians living overseas. Therefore, much of the monetary circulation is in the form of remittance sent back home to relatives.
However, a large portion of the yearly $70 billion that comes India’s way is also for paying the salaries of more and more employees overseas, as India has become a very popular outsource hub for many Western companies.
IT Hub: India is THE destination for every company, big or small, when they need to outsource rudimental tasks such as data entry, data mining or research. But lately, more and more programmers have stepped up to grow the IT culture even more.
The city of Bangalore, nicknamed the “Technology Hub Of The East“, is the backbone of India’s $60.5 billion outsourcing industry, luring the best talent from across the country.
Expats: Remittances have always been a big part of India’s income as so many Indian people work abroad. Additionally, many non-metropolitan cities are heavily dependant on remittance, because the economy and job opportunities are not the same throughout the country.
Real Estate: Being the second biggest country in the world and with a prediction to take the top spot by 2050, the real estate sector is growing steadily and will keep this trend, with the chance to boom in 2015.
The construction and infrastructure sector will also be growing at a rate of 7-8% over the next ten years with approximately $1 trillion to be invested over the next 3 years.
How Can I Send Money Cheaply?
The question is as good as the answer – Foreign Exchange companies. FX companies such as MoneyCorp are focused on providing just one service but doing it right: International Money Transfers. But, considering how low the fees are, how are they making money?
They are dealing with very high quantities of currency and even the smallest fluctuation in currency value can make them huge money. By offering to be the intermediate between you and banks, they can put in motion the currency exchange and get the transactions done.
The Process: Simple as Well as Secure
To start sending money, you can simply sign up at any of the secured websites made available by these FX companies. Signing up costs no money and you are not required to make any commitment or provide more than the very basics of your own personal information. Avoid bad reputation companies whose name has been involved in controversies.
Once you have set up the account, you can log in whenever you would like to take a look at the current rates. The best part is, you can often personalise online alerts so you will be notified if rates reach the low level you have designated.
Once you are set up on the system, you can choose your methods of transferring funds, whether you prefer a bank draft, wire transfer, or another method of securely sending your money.
What info is needed to send money to India
- Bank Name and Address of the receiver
- IFSC Code
- Swift/BIC Code
- Account Number of the receiver
- The Complete Name of the receiver
Regulations and taxes when transferring money to and from India
India’s currency is the Indian Rupee (INR). The INR is fully convertible, and there are relatively few transfer restrictions. However, after India’s economic downturn in 2013, the Reserve Bank of India began implementing already extant but unenforced regulations.
The Reserve Bank of India
India’s monetary authority is the Reserve Bank of India (RBI). The RBI implements monetary policy, oversees payment systems, works to preserve price stability, and manages foreign exchange operations.
There are no transfer limits on money going in and out of India. However, after the downturn in 2013, the RBI introduced capital controls, decreasing the limit on personal remittances from US$200,000 per year to US$75,000 per year. It has since been raised to US$125,000.
The Foreign Exchange Management Act (FEMA) prohibits rupees from being transferred out of India. Any currency must first be converted, complicating the process of monetary transfers.
Taxation on foreign income
Indian residents are taxed on any foreign income. Non-residents are taxed only on income originating in India. Double tax treaties are in place to avoid double-taxation.
Biggest banks in India
- State Bank of India
- Punjab National Bank
- Bank of Baroda
- Canara Bank
- Central Bank of India
Limitations: Be sure to check with your bank or the Legislation in force, to fully understand the limitations you have. Usually, amounts over $10,000 will need to be reported and tax will need to be paid. If the money you send is a gift or for your relatives and you don’t want to have any problems, you can always send it in smaller amounts.
Are you still undecided? We have also reviewed a company which specialises in sending money to India called Remit 2 India. They focus on one thing only – Money Transfers to India. Simple! But the question is always this: Is it better than others?
According to their online calculator, for $10,000 you will receive 615,500 INR. So, right off the bat, the best way to transfer money to India will be to use our first suggested company because it has the best exchange rate to India. Even though the Remit2India exchange rate is pretty good compared to high street banks, it is not as good as the exchange rate comparison presented in the tables above.
Another drawback is the fees system. With the companies listed above, you have zero fees on transfers for bigger amounts. But Remit2India seems to charge you more and more. You can take a look at their FAQ page to consult the fee structure for every currency.
The power of GBP vs INR
Even though for the past few years India has had a growing economy, people are still struggling to make a good life for themselves. Like with anything, improving a country’s economy takes time. But for most the young, educated people, this is not happening fast enough. This is why they choose to emigrate to other English speaking countries and the #1 destination is usually the UK.
And it is easy to understand why:
- India was a colony of the British Empire so most of them know English as a native language;
- The Indian population in the UK was 3% in 2011;
- The average salary in the UK is far bigger than in India;
- The Pound is a very powerful currency.
When you think about the fact that the average salary in India is 5 times lower than in the United Kingdom (similarly with Sri Lanka), things start to shape up. And we start to understand how one person working abroad can provide for the whole family back home.
With a single wire transfer to India of 300 GBP, someone in India can pay the rent for a full month, pay all the utilities and still have money to buy groceries for weeks. And this is the case for all of the major cities like Mumbai, Delhi, Bangalore, Chennai or Kolkata.
So if you send money to India or send money from India, be sure to pick the company with the lowest fees. Because a pound can go a long way in India and in your pocket.