Sending money from India to countries like the USA, Canada, or Europe 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 (WU) 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Traditional banks may seem safe, but they are slow, expensive, and outdated: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
- 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.
🏆 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:
- 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.
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.
🏆 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:
- 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.
🚀 Final Thoughts: Why You Should Use WISE or Western Union
If you’re looking to send money from India to the USA, Europe, or Canada, your best bet is to use WISE or Western Union, and here’s why:
- ✅ Better exchange rates than banks
- ✅ Lower fees, no hidden costs
- ✅ Fast and reliable transfers
- ✅ No paperwork or branch visits
- ✅ Globally regulated and trusted
Don’t waste time or money with banks that charge exorbitant fees, offer poor rates, and delay your transfers.
Start your international money transfer journey today with WISE or Western Union, and experience the difference.
