How to Transfer Money Abroad from India (2026)

March 11, 2026

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Sending money from India to countries like the USA, Canada, Europe, Australia or Singapore has become much easier, faster, and more affordable thanks to modern financial technology. Gone are the days when you had to rely on traditional banks and go through layers of paperwork, high fees, and long processing times. Today, services like Wise and Western Union have emerged as reliable and cost-effective alternatives.

This article provides a comprehensive guide on how to send money from India, the rules and regulations, and why using WISE or Western Union is a smarter choice than traditional banks.

🌐 Overview: Sending Money Abroad from India

Residents of India are permitted to send money abroad under the Liberalised Remittance Scheme (LRS), governed by the Reserve Bank of India (RBI). The LRS allows resident individuals to remit up to USD 250,000 per financial year for permitted purposes such as:

Education
Medical treatment
Maintenance of close relatives
Overseas travel and tourism
Gift or donation
Investment in real estate or stocks

All remittances are subject to the Foreign Exchange Management Act (FEMA).

🔒 What is FEMA?

The Foreign Exchange Management Act (FEMA), 1999 is a legal framework introduced by the Indian government to regulate foreign exchange transactions. It ensures that all outward remittances are legal, documented, and monitored.

Under FEMA:

Only approved purposes are allowed for remittance
PAN card and KYC are mandatory
Remittance must go through RBI-authorized channels

Violating FEMA can result in penalties, so always use trusted, regulated platforms.

✅ Step-by-Step Process to Send Money from India

Choose a regulated remittance provider – Wise or Western Union are the best options.
Register with your Indian address and KYC documents – Aadhaar, PAN card, etc.
Select the country (USA, Canada, Europe) and enter recipient details.
Specify purpose of transfer (e.g., education, family maintenance, travel).
Pay using your Indian resident bank account (not NRE/NRO).
Submit PAN card and purpose declaration, if prompted.
Transfer completes typically within 24-48 hours.

⛔ Why Banks Are NOT Recommended

Traditional banks may seem safe, but they are slow, expensive, and outdated:

High Fees: Service charges, conversion fees, GST, and SWIFT charges, both sending and receiving banks will charge you a fee.
Poor Exchange Rates: Banks charge a hefty markup on currency rates
Long Processing Time: 3 to 5 business days or more
Complex Paperwork: Physical branch visits, application forms, KYC, etc.

For a transfer of INR 100,000, a bank may charge you INR 2,500 to INR 4,000 more compared to Wise or Western Union. You may also face TCS (Tax Collected at Source) charges, depending on the purpose and amount.

🚀 Best Services to Send Money from India

Currently, only two fintech companies are authorized and operational for sending money from resident Indian bank accounts:

1. ✨ WISE (Formerly TransferWise)

Wise is a UK-based money transfer service that lets you send money using the real mid-market exchange rate with no hidden fees.

Why Wise Stands Out:

Transparent, low fees
Mid-market exchange rate (no markup)
Easy to use mobile app and website
Highly trusted and regulated globally
Transfer time: 1-2 business days

How to Use Wise from India:

Sign up with your Indian resident address and PAN card
Verify your identity (upload Aadhaar or Passport)
Link your resident savings account (not NRE/NRO)
Select destination and enter recipient details
Pay via netbanking/UPI
Track your transfer in real time with full transparency.

💰 How Much Does WISE Cost?

WISE charges a low, transparent fee that varies based on the currency and amount. Typically, the fee includes:

A small percentage of the amount (usually 0.4% to 0.6%)
A fixed fee (depending on the country, usually under ₹100)

For example, sending ₹1,00,000 to USD may cost you around ₹1300 to ₹1500, with a real exchange rate and no markup. The exact amount is shown upfront before you complete the transfer. If you used any indian bank (SBI, HDFC, ICICI, Axis etc), the cost would be more than ₹6500, including taxes.

Wise Exchange rates

Wise exchange rates for common currency pairs (updated every 5 mins).

	GBP	USD	EUR	INR	CAD	AUD	CHF	MXN	CNY
GBP	1	1.3347	1.15902	123.533	1.81993	1.8861	1.04891	23.8077	9.18347
USD	0.749232	1	0.868357	92.5552	1.36355	1.41313	0.7859	17.8375	6.88055
EUR	0.8628	1.1516	1	106.587	1.57026	1.62736	0.905	20.5417	7.92364
INR	0.008095	0.010804	0.009382	1	0.014732	0.015268	0.008491	0.192723	0.07434
CAD	0.549472	0.73338	0.636836	67.8781	1	1.03636	0.576363	13.0817	5.04606
AUD	0.530194	0.70765	0.614493	65.4967	0.964916	1	0.556142	12.6227	4.86902
CHF	0.95337	1.27243	1.10497	117.77	1.73502	1.7981	1	22.6969	8.75499
MXN	0.042003	0.056062	0.048682	5.1888	0.076443	0.079222	0.044059	1	0.385735
CNY	0.108891	0.145337	0.126205	13.4517	0.198175	0.20538	0.114221	2.59245	1

🏆 Wise: Trust, Transparency, and User Ratings

Wise has earned a 4.6 out of 5 rating on Trustpilot, based on thousands of user reviews. It is globally appreciated for:

9.1

RemitReview Score

Transparency 10

Exchange Rate 10

Transfer Fee 8.5

Transfer Speed 9.5

Supported Currencies 8

Customer Satisfaction 8.6

Honest and upfront pricing (no hidden charges)
Mid-market exchange rate with no markup
Excellent customer support and transparency
Smooth and intuitive mobile and desktop experience

Users consistently praise Wise for its reliability, speed, and trustworthiness. You can sign up using the link below, complete verification and send money within 1-2 hours.

2. ✨ Western Union (Digital Transfer)

Western Union is a globally trusted remittance service with both digital and agent-based services. From India, only digital transfers (via website/app) are allowed for outward remittances.

Why Choose Western Union:

Accepts Indian resident accounts for sending money
Wide global network of recipients
Transparent pricing, competitive rates
Trusted brand with decades of experience

How to Use WU from India:

Register with Indian address and valid ID
Complete KYC verification
Select country (USA, Canada, Europe) and purpose
Provide recipient bank details
Pay using your Indian bank account

Transfers can be delivered directly to recipient banks abroad. Most transfers are processed in 1-3 working days.

💰 How Much Does Western Union Cost?

Western Union charges a combination of a transfer fee and a currency exchange margin. While fees vary by destination and method of payment, typical costs include:

A flat fee starting from ₹100 to ₹300 for most digital transfers
A currency conversion markup (lower than banks but slightly higher than Wise)

You’ll see the exact fee and the applied exchange rate before confirming the transaction. Despite a slightly higher currency margin than Wise, Western Union is still significantly cheaper than banks and widely trusted. While Wise is limited to some currencies, but Western Union has global coverage!

Western Union exchange rates for common currency pairs (updated every 5 mins).

🏆 Western Union: Trust, Transparency, and User Ratings

Western Union is a globally recognized and trusted brand, with a long-standing reputation in international money transfers. It has a 4.0 out of 5 rating on Trustpilot, with users appreciating:

8.4

RemitReview Score

Transparency 8

Exchange Rate 8

Transfer Fee 7

Transfer Speed 9

Supported Currencies 9.5

Customer Satisfaction 8.6

Reliable global network
Simple and transparent digital interface
Secure transfers and verified transactions
Accessible support for international customers

💼 What Accounts Can You Use?

You must use a resident savings account in India to send money. Transfers are not allowed from NRE or NRO accounts via Wise or Western Union.

💸 What Are the Transfer Limits and Taxes?

Limit: Up to USD 250,000 per financial year under LRS
TCS (Tax Collected at Source): If you send more than INR 7 lakh/year, TCS of 5% may apply (can be claimed back while filing ITR)
No TDS (Tax Deducted at Source) unless you’re making an investment abroad

Banks usually charge conversion tax, GST, and transfer fees – all of which are cheaper with Wise and Western Union.

🌐 Which Countries Can You Send To?

With Wise and Western Union, you can send money from India to:

United States (USD)
Canada (CAD)
Eurozone (EUR) – including Germany, France, Netherlands, Italy, Switzerland, Belgium, Norway, Sweden, etc.
UK (GBP)
Australia
Singapore
Malasiya
And over 40+ supported countries depending on the service.

📅 Typical Use Cases

When sending money abroad from India, you’ll be asked to declare your purpose of remittance. Common reasons include:

🎓 Education Expenses
🌎 Tourism and Travel
🏡 Buying Property Overseas
🚑 Medical Treatment Abroad
🎁 Gift or Donation
💼 Family Maintenance

Be honest and clear – mismatching purpose may cause rejection or scrutiny.

❓ Frequently Asked Questions

Can NRIs send money from India?
Yes. But only using NRE or NRO account, not resident accounts. So they cant use Wise or Western Union, but BANK.

Can I send money from NRE/NRO account?
No. WISE and Western Union require a normal resident savings account.

Is it safe to use WISE or Western Union?
Yes. Both are regulated by the RBI and international financial authorities. They use bank-grade encryption and secure platforms.