Sending Money to India: Complete Guide to Services and Fees

Sending money to India has become easier than ever, but with so many options available, choosing the right service can be confusing. Whether you’re supporting family, paying for education, or sending business payments, you need a service that is affordable, fast, and secure.

This guide explains the main ways to send money to India, how each one works, what fees you’ll pay, and how long transfers take. By the end, you’ll know exactly which option suits your needs best.

Why Understanding Your Options Matters

The cost of sending money to India can vary significantly depending on which service you use. A difference of 2-3% in fees might seem small, but on larger amounts, it adds up quickly. Similarly, some services deliver money in minutes, while others take several days.

Your choice depends on three main factors:

• Speed: How quickly does the recipient need the money?
• Cost: What fees and exchange rates will you pay?
• Convenience: How easy is it to send money from where you are?

Main Ways to Send Money to India

1. Bank Transfers

How it works: You visit your bank branch or use online banking to send money directly to an Indian bank account. Your bank processes the transfer through international payment networks like SWIFT.

Typical fees: ₹500 to ₹1,500 per transfer, depending on your bank and the amount

Delivery time: 2-5 business days

Exchange rate: Usually not the best available in the market

Best for: Larger amounts (above ₹1 lakh) or regular business payments where security is the priority

Advantages:

• Highly secure and regulated
• Works for any bank account in India
• Good for large amounts
• Leaves a clear record for tax purposes

Disadvantages:

• Slower than other options
• Higher fees for smaller amounts
• May require visiting a branch
• Poor exchange rates

2. Money Transfer Apps and Online Services

How it works: You download an app or visit a website, create an account, enter the recipient’s details, and pay using your debit card, credit card, or bank account. The money is transferred within hours or days.

Popular services: Wise (formerly TransferWise), Remitly, MoneyGram, Western Union, PayPal, Google Pay, PhonePe

Typical fees: 1-3% of the transfer amount (often cheaper than banks)

Delivery time: Minutes to 24 hours

Exchange rate: Often better than banks, especially with services like Wise

Best for: Regular transfers of smaller to medium amounts (₹10,000 to ₹5 lakhs)

Advantages:

• Faster than bank transfers
• Lower fees for small to medium amounts
• Better exchange rates (especially Wise)
• Easy to use from your phone
• No need to visit a branch

Disadvantages:

• Daily or monthly transfer limits
• Requires account verification
• Some services have higher fees for very large amounts
• May not work if the recipient doesn’t have a bank account

3. Remittance Services (Cash Pickup)

How it works: You visit a physical location (like a post office, travel agency, or money transfer center), give cash or pay by card, and the recipient picks up cash at a partner location in India. No bank account needed.

Popular services: Western Union, MoneyGram, Xpress Money, Ria Money Transfer

Typical fees: 2-4% of the transfer amount

Delivery time: Minutes to a few hours

Best for: Recipients without bank accounts or when speed is critical

Advantages:

• Recipient doesn’t need a bank account
• Very fast (often minutes)
• Available at many locations in India
• No technology required to receive money

Disadvantages:

• Higher fees than bank transfers for large amounts
• Requires visiting a physical location to send money
• Recipient must travel to pick up cash
• Less secure than bank transfers
• May have daily limits

Comparing Costs: A Real Example

Let’s say you want to send ₹50,000 to India from abroad. Here’s what you might pay with different services:

• Bank transfer: ₹50,000 + ₹1,000 fee = ₹51,000 (plus poor exchange rate)
• Wise: ₹50,000 + ₹700 fee (1.4%) = ₹50,700 (with mid-market exchange rate)
• Remitly: ₹50,000 + ₹1,200 fee (2.4%) = ₹51,200
• Western Union (cash pickup): ₹50,000 + ₹1,500 fee (3%) = ₹51,500

In this example, Wise saves you ₹300-800 compared to other options. For larger amounts, the savings increase.

Key Factors to Consider Before Choosing

1. Amount You’re Sending

For small amounts (under ₹10,000): Money transfer apps are usually cheapest

For medium amounts (₹10,000 to ₹1 lakh): Compare Wise, Remitly, or your bank

For large amounts (above ₹1 lakh): Bank transfers may be better despite higher fees

2. Recipient’s Needs

Does the recipient have a bank account? If yes, use bank transfers or apps. If no, use cash pickup services.

Does the recipient need money urgently? Remittance services are fastest. Apps are second. Banks are slowest.

3. Frequency of Transfers

Regular transfers: Money transfer apps offer better rates and lower fees

One-time transfers: Bank transfers may be simpler if you already have an account

4. Your Location

Some services work only in specific countries. Check if your chosen service operates where you are before opening an account.

Safety Tips for Sending Money

• Use only official apps and websites—never use links from emails or messages
• Verify the recipient’s bank details before sending
• Keep records of all transfers
• Never share your password or OTP with anyone
• Use services regulated in your country
• Check that the service is licensed to operate money transfers

What Happens to Your Money During Transfer

When you send money to India, here’s what happens behind the scenes:

1. You pay the sending service in your local currency
2. The service converts your money to Indian rupees at their exchange rate
3. Your money is sent to India through banking networks
4. The money arrives in the recipient’s bank account or is available for cash pickup
5. The recipient receives rupees in India

The entire process is secure because banks and licensed money transfer services follow strict rules to prevent fraud and money laundering.

Hidden Costs to Watch Out For

Exchange rate markup: Services add a small percentage to the official exchange rate. Wise usually has the smallest markup.

Receiving bank fees: Some Indian banks charge a small fee to receive international transfers. Ask your recipient’s bank about this.

Payment method fees: Paying with a credit card may cost more than paying from a bank account.

Verification fees: Some services charge for account verification. Most don’t.

How to Get Started

Step 1: Decide which service suits your needs (bank, app, or cash pickup)

Step 2: Download the app or visit the website

Step 3: Create an account and verify your identity

Step 4: Enter the recipient’s details (bank account or pickup location)

Step 5: Enter the amount and review fees

Step 6: Pay using your preferred method

Step 7: Confirm the transfer and save your reference number

Step 8: Share the tracking details with the recipient

Conclusion

Sending money to India doesn’t have to be complicated or expensive. The best choice depends on how much you’re sending, how fast you need it to arrive, and whether the recipient has a bank account.

For most people sending regular amounts, money transfer apps like Wise offer the best combination of low fees and fast delivery. For larger amounts or business payments, a bank transfer might be more suitable. For recipients without bank accounts, cash pickup services are the only option.

Compare fees and exchange rates before you send, verify the recipient’s details carefully, and always use official apps or websites. With the right service, sending money to India is quick, affordable, and secure.