Complete Guide to International Remittance from India

Sending money internationally from India has become easier than ever, but choosing the right method and provider can still save you thousands of rupees on each transfer. This comprehensive guide covers everything you need to know.

Remittance Methods Available

Indian residents can send money abroad through wire transfers (SWIFT), online forex platforms, bank transfers, and specialized remittance services. SWIFT transfers through banks are the traditional method but come with higher fees (Rs 500-2,000 per transfer) and slower processing times (3-5 business days). Modern platforms like Nimo Remittance offer faster transfers at significantly lower costs.

Understanding the Costs

The total cost of an international remittance includes the exchange rate markup, transfer fees, intermediary bank charges, and receiving bank fees. Banks typically mark up exchange rates by 1.5-3% and charge flat fees of Rs 500-1,500. Specialized providers may charge lower flat fees but make up for it with exchange rate markups. Always compare the total cost, not just the advertised fee.

Documentation Required

For outward remittances under LRS, you need PAN card, Aadhaar, passport, and a completed Form A2 for amounts above USD 25,000. Purpose-specific documents include admission letters for education, medical certificates for treatment abroad, and invoices for business payments. Nimo simplifies this process with digital document verification through the app.

Popular Remittance Corridors from India

The most common remittance destinations from India include the US, UK, Canada, Australia, UAE, and Singapore. Each corridor has different processing times and cost structures. US-bound transfers are typically the most competitive due to high volumes, while transfers to smaller markets may cost more.

Transfer Limits and Tax Implications

Under LRS, you can remit up to USD 2,50,000 per financial year. TCS of 5% applies on amounts exceeding Rs 7 lakh. For education remittances funded by loans, the TCS rate is reduced to 0.5%. All remittances above Rs 7 lakh must be reported by the authorized dealer, and the TCS can be adjusted against your tax liability when filing returns.

Choosing the Right Provider

Compare the total cost across providers, including both fees and exchange rate markups. Check processing times, especially for time-sensitive transfers. Ensure the provider is RBI-authorized. Look for features like rate locking, transfer tracking, and responsive customer support. Nimo Remittance offers competitive rates, transparent pricing, and transfers that complete within 24-48 hours.