The United State of America is home to a large Indian population. In fact, Indians are one of the largest immigrant groups in the USA and they include students, job seekers, migrant workers, visitors, etc. So, on many occasions, they need money sent to them from India. Therefore, it is very important to know how to transfer money from India to the USA.
According to the Liberalised Remittance (LRS) Scheme, all Indian residents can transfer funds up to USD 250000 per financial year. There are many ways you can transfer money from India to the USA. You can transfer money via electronic money transfer, foreign currency demand draft, online money transfer service, etc.
Jump To A Section
- 1 What Are The Purposes Of Sending Money From India To The USA?
- 2 What Documents Are Required For Money Transfer From India To The USA
- 3 What Beneficiary Details Are Required To Transfer Money From India To The USA?
- 4 Things To Consider When Transferring Money from India To The USA
- 5 Different Ways To Transfer Money From India To The US
- 6 List Of Best Online Money Transfer Service Providers
- 7 Final Thought
What Are The Purposes Of Sending Money From India To The USA?
There are many reasons Indians transfer money from India to the USA. They are:
1. Fee Payments to Universities/Colleges in the US
2. Living Expenses of Indian Students in the USA
3. As a gift to a US resident
4. Remittance by tour operators to overseas agents/hotels
5. Emigration/Visa fees
6. Maintenance of Close Relatives in the US
7. For medical treatment in the USA
8. Fee for participation in conferences or training
What Documents Are Required For Money Transfer From India To The USA
1. Government-issued photo ID as proof of the sender (Passport/Voter’s ID/Aadhar Card)
2. PAN card copy of the sender
3. Filled A2 Form and declaration with signed by the sender
4. Purpose proof (University letter/Prospectus) stating the amount to be transferred and account details (for tuition fee payments only)
5. Beneficiary passport copy (for maintenance of close relative & gift remittance only)
What Beneficiary Details Are Required To Transfer Money From India To The USA?
1. Beneficiary Bank Name & Address
2. Beneficiary Name & Address (as given in bank)
3. SWIFT Code & Routing number
4. Beneficiary Account Number
Things To Consider When Transferring Money from India To The USA
When you are sending money internationally, there are few things to consider so that you get the best value for your money. Let’s check them out.
This is a very important thing that you should check when transferring money internationally. The foreign exchange rate is the value of a currency that you will get when transferring money to another currency. The difference in the exchange rate of the currencies is one of the many ways banks and other financial service providers make money. Having a small difference in the exchange rate can create a significant difference while sending a large sum of money. So you are sending money from India to the USA that means you will be paying in Indian rupees and the recipient will receive the money in US Dollars. Therefore, you have to convert the INR to USD according to the exchange rate.
Transfer speed is the time required for the money to reach its intended destination. Depending on the service and country the transfer speed might vary. It might take minutes or days to transfer the money. If it’s urgent then you can send money through a money transfer agent as it is very fast but it will cost you more. On the other hand, a bank transfer is cheaper but it might take 3-5 days to transfer the money. You can also transfer the money via an online money transfer service. You will get the best rate and transfer speed from an online money transfer service.
Different Ways To Transfer Money From India To The US
You can internationally send many in various ways and these ways will differ in terms of speed, charges, and simplicity. Below you will find three most used ways to send money to the USA from India.
Wire transfer is a type of electronic money transfer system that allows you to transfer/wire money from your bank account to a US bank account. It is the most secure way to transfer money to the USA. Bank to bank transfer system uses a technology named the SWIFT (Society for Worldwide Financial Transactions). SWIFT allows a bank in the network to share transaction information with another bank in the same network. Reserve Bank of India (RBI) and other major banks support SWIFT transfer over 400 international banks around the world. So if you want to wire transfer money to the USA then you have to share your bank account number, your recipient’s bank details including the name, account number, location, etc. On some occasions, you might need to show some documents to prove your identity or your purpose of outward remittance.
Foreign Currency Demand Draft
This is a very simple way of transferring money from India to the USA. Foreign Currency Demand drafts are a type of pre-paid negotiable instruments and they offer flexibility while sending money. Usually, this type of demand draft is issued in a particular foreign currency by a bank. This is a very cheap way to transfer money internationally. You are only charged by the demand draft fee by the bank or the service provider. One of the problems with these Foreign Currency Demand drafts is; it takes a longer time for the recipient to receive the money. If time is not a problem and you want to save money then this is the best option for you.
Online Money Transfer Service
There are lots of financial service providers available that offer online money transfers for sending money in the USA. These are dedicated companies that take the complexity out of the equation so that you can easily transfer the money internationally. Thanks to the advanced technology and high-speed internet you now can transfer money to the USA from your house. You will have to pay a small fee but you can transfer the money quickly and conveniently.
List Of Best Online Money Transfer Service Providers
2. Western Union
TransferWise is a very popular peer-to-peer online money transfer company that allows its users to transfer money online. It is one of the cheapest ways to send money online. The exchange rate TransferWise offers is the mid-market exchange rate and their fee is also low compared to other service providers. With TransferWise you can send money using their website or their money transfer app. You can pay the money with your debit card or credit card or from your bank account. TransferWise supports over 750 currencies, including USD, EUR, GBP, JYP, etc.
Western Union is one of the oldest money transfer companies and they are the pioneer in this industry. Western Union allows you to send money from India to the US with minimum fees. They have over 525,000 agents working worldwide so that you can internationally transfer money conveniently. You can transfer the money from their website and directly from your bank account. The recipient will also get the money directly in their bank account. It might take one day to transfer the money and you can check the transaction online from your Western Union account.
BookMyForex is also a popular online money transfer service provider. In fact, it is a complete foreign exchange solution. BookMyForex offers currency exchange, international sim cards, trade remittance, foreign tour guidance, travel insurance packages, foreign money transfer services, and many more to its users. You will have to provide your bank account information, beneficiary bank details, ID proofs, and other verification if necessary. Usually, it takes two days to transfer money to the USA via BookMyForex.
ExTravelMoney offers the best foreign exchange rate while transferring money to the USA. With ExTravelMoney, you can initiate money transfers online directly from their website. You have to fill in the amount of USD that you want to transfer and provide a valid reason for transferring money. ExTravelMoney allows you to compare the different rates offered by banks and RBI authorized dealers which are very convenient. You can select a rate according to your choice and then book it by providing valid documents. Once you are verified your money will be transferred to the chosen bank.
Compared to other service providers, Remitout offers a faster transaction time so if you are in a hurry to send money then Remitout will be the best option for you. Remitout has strategic alliance partnerships with leading financial service providers like SBI Canada Bank, Transcorp, Coracle, and Orient Exchange. Moreover, Remitout also offers the lowest rate than many online transfer service providers. They have a “freeze live rates” feature so you don’t have to worry about constantly changing rates. Remitout service is best for transferring money for educational expenses in Universities in the USA.
With the advancement of technology, international money transfer now has become easier. Moreover, the demand for transferring money from India to the USA will increase in the coming years. So, there will be more and more service providers to meet the increased demand for international money transfers. Finally, which will be the best way to send money from India to the USA depends on the service from a bank or other organization that suits your needs. Make sure you check and compare every service provider and then choose one that offers you the best exchange rate and lowest transfer fee.
Last Updated on April 30, 2021 by Musa D