NRI Banking
Smart Remittance Guide
As a Non-Resident Indian, the word ‘Remittance’ will take precedence when you are thinking of money. Remittance is categorised as inward and outward.
Inward remittance is when you send money from your resident country to India to support your family, make investments, etc.
With outward remittance, you can transfer money from India. This typically happens through a Non-Resident (NRO) or Non-Resident External (NRE) based on your choice.
Learn how to go about the process of remitting money smartly in this handy guide:
Things to consider for making smart remittance decisions
Certain factors will impact the efficiency while you remit money. Looking into them helps you stay prepared and choose the right remittance channel.
- Speed and convenience
Consider service providers that make international money transfers quick and easy. For example, Axis Bank’s REMITMONEY platform lets you send money online for purposes such as Family Maintenance,Non-Resident Deposits, or Gifts. The process is simple and fully digital, helping you transfer funds smoothly and without delays.
- Exchange rates
The final value of the transferred amount depends on the exchange rate. The rupee value after the conversion makes all the difference. That is why, monitoring exchange rates is crucial to get the most favourable result. Look out for how the exchange rate fluctuates and try to remit when the rupee is weak. The frequency of fluctuation ranges from a minute to hours, thanks to the rapid trading activity in the Forex market.
- Limit on transactions
The Reserve Bank of India (RBI) imposes a limit of USD 1 million in a financial year on your NRO Account. This affects the amount you can transfer to your overseas account. In other transfer methods, the financial institutions you choose may also impose limits. They do so on number of transfers you can do in a year and the total amount you can send in one go. It is good to get more entail on this to avoid surprises later.
- Fees
Banks and service providers charge a margin on th exchange rate. They also include a transaction cost for facilitating remittance. The exact fee depends on the amount you transfer and the service provider’s policy. Such charges are explicitly mentioned when you opt for the remittance service. But it is also true that they can be hidden. Hence, do a thorough check just to be sure.
- Security and credibility
It helps to check the service company or banks that you choose to remit money through. They should assure reliance. You can ascertain this by checking their credibility and if a regulatory body authorizes them. It is easy to get attracted by low costs and attractive exchange rates provided. The trick is not sway, stay alert, and consider authenticity over low costs as your money is at stake.
Remittance Channels to compare for the right choice
The various channels you can consider to remit money to India are:
- Wire transfers
Considered one of the most secure methods, Wire or SWIFT transfer uses the international banking network to send money directly to an Indian bank account from your overseas account. It is an ideal medium if you wish to transfer a large amount at a higher speed. Consider the cost too, as it can go on the higher side for its efficiency.
- Online money transfers
You can expect competitive exchange rates and low fees with online money transfers. It is a relatively user-friendly channel to send money to an Indian bank account directly. The process time is as quick as within minutes. You can also track the progress in real-time.
- Cross-border UPI
You can use UPI as an NRI to remit money to India. Your NRI bank accounts such as the Non-Resident External (NRE) and Non-Resident Ordinary (NRO), are useful for this purpose. You can link use the mobile number linked to these NRI accounts to send money to India.
- International Money Orders
International money orders are great for when the recipients don’t have a bank account. They also help with accessibility issues like in rural areas. They offer reliability as they as the money travels through the postal network. It reaches the recipient who can encash the order at the Indian Post Office. Note that larger amounts may require additional documentation and are often paid via cheque.
- Foreign Currency Demand Drafts
You may request a demand draft in foreign currency from your bank account in the resident country. This is sent via mail to the recipient in India who can deposit the FCDD in the bank and get the amount deposited in their account. With this method, the processing time is slow and the recipient may incur bank charges.
Note the above channels are applicable for inward remittance as well and incur different charges as well. You can guide your friends, family, and acquaintances back home regarding the same.
To remit from your NRO account to your overseas account, the transaction limit is USD 1 million in a financial year. Plus, the RBI regulations in regards to taxation are applicable.
Conclusion
Remitting money as an NRI has never been easier than it is in 2025. As is clear from this blog, you can choose from various channels that have their merits and can cater to different goals. The key is to consider a few essential aspects to get it just right. Once you equip yourself with the required knowledge, nothing seems like a hassle.
Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.
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