India receives more money from abroad than any other country. If you are sending from the UK or US, the question is rarely whether a route exists. It is which kinds of Indian account exist, what each lets the recipient do later, and what rights you have if the transfer goes wrong. Most comparison pages stop at the exchange rate. This guide starts earlier, with the account at the other end.
This is general information, not financial, tax or legal advice. We do not rank providers or recommend one, and nothing here is a quote. Rules and figures were checked on 3 November 2026 against the sources listed at the end. Where we could not confirm a point from an official source, we say so in the text.
Last updated 3 November 2026. This piece sits in the Protect section.
The short answer
The type of Indian account decides what the recipient can do with the money afterwards. In the RBI’s comparison, a resident account is the ordinary account of someone who lives in India, an NRE account is for non-residents and is repatriable, and an NRO account holds India-sourced money and is harder to move abroad. Compare the rupees that arrive, not the headline fee. Check the provider is authorised, and note that a 1% US tax applies if you pay in cash.
How big this corridor is
The World Bank reports that India received about US$150.71 billion in personal remittances in 2025, up from about US$137.67 billion in 2024. On that series it ranks first among the 132 countries with data for 2025. We worked the ranking out from the World Bank data ourselves. The series covers every sending country, not only the UK and US.
How Indian account types differ
The Reserve Bank of India (RBI) publishes a comparison of the main accounts open to people who live outside India. We summarise the rows that matter to a sender below, using the RBI’s table (its page shows it as at 16 January 2025). Resident accounts are the ordinary bank accounts of people who live in India.
| Question | NRE account (Non-Resident External) | NRO account (Non-Resident Ordinary) |
|---|---|---|
| Who can open it | Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs); people from Pakistan and Bangladesh need prior RBI approval | Any person living outside India for bona fide rupee transactions; people and entities of Pakistani nationality or origin, and entities of Bangladeshi origin, need prior RBI approval |
| Currency | Indian rupees | Indian rupees |
| What can be paid in | Inward remittances from outside India, interest on the account and other eligible credits that have not lost repatriable character | Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts |
| Can the balance be sent abroad? | Repatriable | Not repatriable, except current income; NRIs and PIOs can remit up to USD 1 million per financial year (April to March) from NRO balances and other eligible assets, subject to conditions |
| Tax treatment (RBI’s table) | Income earned in the account is exempt from income tax | Taxable |
Two points follow. First, an NRE account is only for people who qualify as non-residents under Indian rules. If your recipient lives in India, the ordinary resident account is normally the right one, and the NRE and NRO schemes do not apply to them. Second, money that lands in an NRO account is harder to take back out of India. The USD 1 million a year facility is large, but it is a conditional facility, not a right to move any amount at any time.
RBI also says a rupee gift or loan from an Indian resident to a relative who is an NRI or PIO, within the Liberalised Remittance Scheme limits, can be credited to the NRO account of that relative. That scheme is for money going out of India. It matters if you are an NRI and a resident relative is sending money to you.
Before you send to any account, ask the bank, not a website, which kind of account it is and what the money will be recorded as. The RBI table is dated, so confirm the current rules with the bank and an adviser. The RBI has also notified a further amendment to its deposit regulations on 18 June 2026 (FEMA 5(R)(6)/2026-RB). Law-firm summaries say it allows transfers from NRO to NRE accounts within the Remittance of Assets limit, generally US$1 million, but we have not read the notification text, so treat the table above as the RBI FAQ’s position as at 16 January 2025.
How the money can reach India
| Route | What the recipient needs | What to check before you send |
|---|---|---|
| International bank wire (SWIFT) | Account number, the bank’s IFSC code and branch details | Fees at both ends, and whether an intermediary bank deducts a charge before it arrives |
| Money-transfer app, bank-account funded | Account details, usually with the recipient’s name matching the account | The rate and fee for your exact amount; the speed the provider shows you |
| Money-transfer app, card funded | The same account details | Your card issuer decides how the payment is treated and may charge cash-advance fees; ask before you pay |
| Cash pickup or post-office style services | ID and a reference number | Whether the product delivers to India and how long cash is held; these rules differ by provider |
Your bank and the provider will have their own limits and may ask about the source of funds and the purpose of the payment, so ask both what limits apply. If you would rather pay to a UPI ID than a bank account, ask the provider whether it offers that and what limits apply.
What it really costs
Fees are only part of the price. The exchange rate the provider uses is the other part. The mid-market rate is the rate banks use with each other, which you can see on a currency converter. The gap between that and the rate you are given is a cost.
The US Treasury quotes World Bank estimates in the Federal Register: for US$200 and US$500 remittance transfers sent from the United States in 2025, the average transaction fee was 5.56% and 3.81% of the amount, respectively. Those are global averages for sends from the US, not a price for India and not a quote.
To compare offers:
- Write down the exact number of rupees the recipient will receive after all fees.
- Look up the mid-market rate at the same moment.
- Divide rupees received by the mid-market rate. The difference from what you sent is your real cost.
Illustration (invented numbers, not a quote). You send 1,000. The mid-market rate is 100 rupees per unit, so a perfect transfer delivers 100,000 rupees. Offer A charges a fee of 5 and uses a rate of 99, so the recipient gets 995 × 99 = 98,505 rupees, a cost of 1,495 rupees or 1.5%. Offer B has no fee but uses a rate of 97, so the recipient gets 97,000 rupees, a cost of 3,000 rupees or 3%. The “no fee” offer is the dearer one.
Sending from the UK: checks
- Check the firm is authorised. The FCA says non-bank payment providers, such as authorised payment institutions, small payment institutions and electronic money institutions, must be authorised or registered. Search the FCA Financial Services Register by the provider’s legal company name, because a brand name may not appear on its own.
- Know what is protected. The FCA says there is no Financial Services Compensation Scheme cover for these firms. Electronic money institutions and authorised payment institutions must safeguard customer money; small payment institutions do not have to. Safeguarded money can take time to return and may not be the full amount.
- Complaints. Complain to the provider first. If you are unhappy with the answer, you can go to the Financial Ombudsman Service.
- Money transfer businesses must be registered with HMRC. HMRC says trading without registering is a criminal offence. You can search its Supervised Business Register.
Sending from the US: checks and rights
The 1% remittance tax applies only to some payments
A US excise tax of 1% on remittance transfers, under section 4475 of the Internal Revenue Code, applies from 1 January 2026. The IRS says it applies when the sender pays with cash, a money order, a cashier’s check or a similar physical instrument. The proposed rules add traveler’s checks. It does not apply to a transfer taken from an account at a covered financial institution or paid for with a US-issued debit or credit card. The sender is liable and the provider collects it. On US$1,000 paid in cash, the tax would be US$10.
These are still proposed regulations. The Treasury and IRS issued them on 10 April 2026, with comments due on 12 June 2026, and we found no final version when we checked on 3 November 2026. The IRS has extended provider penalty relief (Notice 2026-52) until final regulations apply.
What a US provider must show you
Under the CFPB’s remittance rule (Regulation E, subpart B), before you pay, the provider must show the amount transferred, its fees and any taxes shown separately, the total, the exchange rate, any covered third-party fees, and the amount the recipient will get. It must also state that other fees or taxes charged by the receiving institution may reduce the amount received. Your receipt adds the date the money will be available, the recipient, your error and cancellation rights, and contact details for the provider, the state agency and the CFPB.
Cancelling and errors
- Cancel. The CFPB says you can cancel for a full refund if the money has not been picked up or deposited, you paid less than 30 minutes ago, and the provider can identify the transfer. A scheduled transfer can be cancelled up to three business days before it is made.
- Errors. Tell the provider within 180 days of the date it disclosed the money would be available. It must investigate within 90 days and report the result within three business days of finishing.
- Wrong account. If you gave an incorrect account number or institution identifier, the transfer may not count as an error if the conditions in section 1005.33(h) are met, so you could lose the money. Check the number twice.
- Receiving-bank fees that the provider does not cover are not treated as errors.
What applies to whom. The 1% US tax above is the sender’s, and only on some payments. The paperwork below is about how the receiving bank records the money. The tax questions after that are about the recipient’s own position in India.
Paperwork: purpose of remittance and FIRC or FIRA
Banks in India record a purpose for incoming payments, and a foreign inward remittance certificate (FIRC) or advice (FIRA) is the bank’s proof that foreign money arrived and why, so the purpose you give should match the real reason, whether a family gift or payment for services. Our guide on proving foreign income with a FIRA or e-FIRA as a freelancer in India explains how to get these documents and what they are for.
Tax questions to take to an adviser
Whether a gift sent to family is taxable in India is a question about the recipient’s own position. The Income Tax Department’s website shows section 56(2)(x) of the Income-tax Act, 1961, which taxes sums above fifty thousand rupees received without consideration, but its proviso says this does not apply to money received from a relative. The Act defines “relative” narrowly, so check whether your relationship is on the list. India’s Income-tax Act, 2025 came into force on 1 April 2026 and replaces the 1961 Act. Secondary sources say the matching gift provision is now section 92, but we could not open the 2025 Act’s text, so ask an Indian tax adviser which wording applies. On the sending side, check HMRC or IRS guidance for your own situation, and tell the recipient to keep records of the source of the money.
If you are a freelancer in India paid from the UK or US
If clients abroad pay you, see our guides to getting paid in one country while you live in another, the payout fee stack on a US$2,000 payment, PayPal versus Wise for client payments and the W-8BEN. For tax residence questions, see tax residence versus where your client is, and for money held across borders, moving money across borders without a UK bank. If a bank closes your account because you live abroad, see what to do when a bank closes your account.
Safe-sending checklist
- Is the company on the FCA Register (UK), or does it give the US disclosure before you pay?
- Does the quote show the exact rupees the recipient will receive?
- Has the recipient told you which kind of account it is, and does the name match?
- Did you pay in a way that avoids the 1% US tax, where that applies?
- Does the purpose you give match the real reason for the payment?
- Did someone ask you to pay into new bank details? Check using our guide on checking a change of bank details before you pay.
- Have you kept the receipt and reference number?
Frequently asked questions
What is the cheapest way to send money to India?
It depends on the amount, the payout method and the exchange rate. Compare the rupees the recipient receives for each offer against the mid-market rate. A low fee with a poor rate can cost more than a higher fee with a good rate.
Is there a limit on how much I can send to India?
Providers and banks set their own limits, and may ask about the source of funds. Ask the provider and the receiving bank what limits apply to your transfer.
What is the difference between an NRE, NRO and resident savings account?
An NRE account is for non-residents and is repatriable. An NRO account is for non-residents’ India-sourced money and is not repatriable except for current income and a USD 1 million a year facility. A resident account is the ordinary account of someone who lives in India. See the table above, which follows the RBI’s own comparison.
Is there a US tax on sending money to India?
A 1% federal excise tax applies to transfers funded with cash, a money order, a cashier’s check or a similar physical instrument. It does not apply to transfers paid from a bank account or with a US-issued debit or credit card. The sender is liable.
What is a FIRC or FIRA and when do I need one?
It is a bank document confirming that foreign money arrived and why. It matters most for freelancers and anyone who has to show the source of a large credit. See our FIRA guide.
Can I send money to India with a credit card?
Some apps accept cards, but your card issuer decides how the payment is treated, and it may count as a cash advance with extra fees. Check your card terms first.
Can I cancel a transfer?
US senders can cancel for a refund within 30 minutes of paying if the money has not been picked up or deposited and the provider can identify the transfer. In the UK there is no equivalent 30-minute right: the Payment Services Regulations 2017 (regulation 83) say a payment order generally cannot be revoked once your provider has received it, unless you agree otherwise with the provider. Check the provider’s terms and cancellation window before you pay.
Is a bank wire safer than an app?
Neither route is automatically safer. What matters is whether the firm is authorised, whether you get a written quote showing what arrives, and whether you have checked the recipient’s details. Wires can lose money to intermediary bank charges; apps can hide it in the rate.
What this guide does not cover
It is not tax, legal or financial advice. We have not listed named providers’ fees, speeds or limits, because they change often and we did not check any provider’s own fee page for this edition; the method above shows how to compare live quotes. We do not cover sending money out of India under the Liberalised Remittance Scheme, buying property in India, or business payments. We do not cover how UPI works for inbound transfers.
Sources
- World Bank: Personal remittances, received (current US$), checked 3 November 2026
- Reserve Bank of India: FAQs on non-resident accounts (NRE, FCNR(B), NRO), page shows data as at 16 January 2025, checked 3 November 2026
- Reserve Bank of India: notification FEMA 5(R)(6)/2026-RB, 18 June 2026 (listed; text not read), checked 3 November 2026
- Reserve Bank of India: FAQ on remittance of assets, checked 3 November 2026
- Income Tax Department of India: Section 56, income from other sources, checked 3 November 2026
- IRS news release IR-2026-48 on the remittance transfer tax, 10 April 2026, checked 3 November 2026
- Federal Register: Excise tax on remittance transfers, 13 April 2026, checked 3 November 2026
- CFPB: Can I cancel an international money transfer?, checked 3 November 2026
- CFPB: Regulation E section 1005.31, disclosures, checked 3 November 2026
- CFPB: Regulation E section 1005.33, procedures for resolving errors, checked 3 November 2026
- FCA: Using payment service providers, page last updated 8 January 2026, checked 3 November 2026
- FCA Financial Services Register, checked 3 November 2026
- GOV.UK: Money laundering regulations, who needs to register, checked 3 November 2026
- IRS Notice 2026-52, extending penalty relief for remittance transfer providers, checked 3 November 2026
- legislation.gov.uk: Payment Services Regulations 2017, regulation 83 (revocation of a payment order), checked 3 November 2026
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