Send Money Abroad from India: Overview
In an increasingly globalized world, Indian students are pursuing higher education in countries such as the USA, UK, Canada, Australia, Germany, and others. With this dream comes the practical need to send money abroad from India for tuition fees, living expenses, or accommodation. For parents, the process can seem overwhelming due to the complexities of legalities, documentation, fluctuating currency rates, and hidden charges.
This guide simplifies the legal and cost-effective methods for sending money abroad from India, offering expert insights to help Indian parents and students make informed decisions.
Understanding RBI Rules for Sending Money Abroad from India
Under the Liberalized Remittance Scheme (LRS), the Reserve Bank of India (RBI) allows resident Indians to remit up to USD 250,000 per financial year per individual for permissible transactions such as:
- Education expenses (tuition, accommodation, books)
- Maintenance of close relatives abroad
- Travel and living expenses
- Medical treatment
Best Methods to Send Money Abroad from India
Here are several reliable methods to send money abroad from India, each catering to different needs and transaction sizes:
1. Wire Transfer (SWIFT Transfer)
Ideal for university fee payments and large sums. It is fast, secure, and globally accepted, making it a popular method to send money abroad from India.
2. Foreign Currency Demand Drafts (FCDD)
Preferred by some institutions for fee payments. Slower than wire transfers but cheaper.
3. Prepaid Forex Cards
Excellent for students’ daily expenses abroad. Reloadable and safer than carrying cash.
4. Remittance Through Forex Companies
Forex firms like Orient Exchange offer personalized support, low markups, and fast processing, often at better rates than banks. A reliable way to send money abroad from India efficiently.
Cost Factors to Watch Out For
Sending money abroad is not just about the amount; you also need to consider the total cost, including:
- Exchange rate mark-up
- Service/transaction fees
- SWIFT intermediary bank charges
- Hidden commissions
Did You Know?
Banks typically charge higher markups than specialized forex companies. Choosing a dedicated forex provider can save you thousands on each transaction when you send money abroad from India.
Tips to Send Money Cost-Effectively
Consider these practical tips to minimize costs and maximize value:
- Compare rates in real-time: Use online rate checkers before initiating a transfer to find the best rates. Orient Exchange displays live rates on its website.
- Avoid last-minute transfers: Currency rates fluctuate daily, so it is best to plan. Plan to book favorable rates.
- Check for offers & cashback: Forex companies occasionally offer discounts for students or zero markup days.
- Opt for direct transfers: Avoid intermediaries to reduce delays and unnecessary charges.
- Keep documentation ready: KYC documents, such as a PAN card, passport, admission letter, and invoice, are mandatory.
Why Parents and Students Prefer Orient Exchange?
- RBI-Authorized Dealer (AD-II Category)
- Transparent and competitive exchange rates
- Doorstep document collection and service
- Dedicated student remittance desk
- Zero hidden charges
Final Thoughts
Sending money abroad does not have to be complicated. By understanding the legal framework, selecting the appropriate channels, and collaborating with a reputable forex partner like Orient Exchange, parents and students can remit funds safely, legally, and economically.
Whether you are funding a degree in Toronto or settling a semester fee in Sydney, start smart by comparing, choosing, and sending money abroad from India wisely.
Recommended Articles
We hope this guide on how to send money abroad from India helped you understand the legal and cost-effective ways to remit funds safely. Explore our related articles on:
