Non-resident Indians (NRIs) living in the United States of America (USA) are known to have a great currency advantage due to the current USD and INR exchange rates. This means they can earn a good amount of interest if they regularly transfer some funds from the USA to their savings account in India. Most NRIs choose to do this through non-resident external (NRE) and non-resident ordinary (NRO) accounts. However, there are certain charges and fees along with time limitations involved. So, let’s take a look at the fees, time, and limits of conducting bank transfers from the USA to India.
Common ways to transfer money from the USA to India
To send money to India from a foreign country like the USA, you first need to understand the various ways to transfer money internationally.
- Money can be transferred from foreign countries back to India by bank wire transfers through the system of Society for Worldwide Interbank Financial Telecommunication (SWIFT).
- Money can also be transferred internationally through online remittance platforms offered by several fintech service providers.
- There are also many international money-transfer services that you can avail of to transfer money from a foreign country back to India.
- Finally, some banks also facilitate bank-to-bank international money transfers through options like “Pay Abroad” directly built into their mobile applications.
Fees charges for the USA to India money transfer
Some banking institutions and non-banking financial companies (NBFCs) charge a certain percentage of the money transferred as a transfer fee. Apart from this fee, some banks may also charge Goods and Services Tax (GST) on the amount transferred. The percentage of GST is decided based on the tax slab applicable to the amount you transfer.
However, other banks do not charge any additional fees to send money from USA to India. Such banks only charge the GST applicable to the amount being transferred, based on the relevant tax slab.
So, when trying to transfer money from the USA to India, non-resident Indians (NRIs) should carefully choose a bank that does not charge high fees for transfer.
Time taken for money transfer
There are several factors that may impact the time taken to send money to India from Western countries like the USA. This time largely depends on the method chosen for money transfer.
- If you choose to transfer money using the recipient’s SWIFT number (known as SWIFT bank transfer), then it may take anywhere between one to three working days. If the money is not received even after 3 working days, it is advisable to contact the bank at the earliest.
- When transferring money using online remittance platforms, it may take anywhere between a few hours to a full working day. In some cases, it may take more than 24 hours as well.
- Finally, if you send money from the USA to India using money transfer services, it is usually remitted the very same day or at most, the next day.
However, most people nowadays prefer digital bank-to-bank transfers directly through the mobile application of their bank. Many banks offer such services so that you can seamlessly send money back home in India.
What are the limits on international transfer?
Despite international money transfer becoming easily accessible these days, there are certain limits on such transfers placed by the Foreign Exchange Management Act (FEMA) of 1999 in India. Interestingly, if your money transfers from the USA to India that comply with all FEMA guidelines, there are technically no limits on such transfers.
On the other hand, the limits from the US side for outward remittances mostly depend on the bank or money transfer service provider you choose.
The takeaway
Transferring money from the USA to India is now faster, safer, and more transparent than ever before. By understanding fees, timelines, and limits, you can choose the most suitable transfer method for your needs. Moreover, partnering with reliable institutions ensures that your international remittances are handled securely and efficiently, giving you complete peace of mind across borders.
