Tips On Sending Money To An Indian NRE & NRO Account

When you want to send money to India you’ll have to consider the type of Indian bank account the recipient holds, as this will determine how they receive the money, how much of it they can withdraw or in some cases they might not be able to receive money from abroad at all because their account does not have certain features.

Firstly, don’t worry, there are many ways you can send money to India. The process is relatively simple if the recipient has an NRE or NRO bank account. We’ve listed some quick tips below to help you send money directly to anyone who has one of these accounts.

Sending Money To An NRO Account

If you want to send money to someone with an NRO you should take into an account that the recipient can only receive up to $1 million a year, so if they use this account for all their transactions and payments, they could reach their limits within that period, especially if they’re involved in high-level business.

The recipient also has to pay all standard forms of Indian taxes on repatriated funds held in an NRO account.  If you are sending a substantial amount, it is worth confirming if the recipient has an alternative account they’d prefer the money sent to, as they will need a chartered accountant to submit records of all repatriated funds in addition to paying taxes on the amount received.

It’s also worth checking that your preferred money transfer option is accepted by the RBI’s Money Transfer Service Scheme guidelines if you’re using an offline method. Ask your bank for a list of all corresponding banks to be sure the transaction goes smoothly.

All funds will be automatically converted into INR for the recipient to withdraw.

Sending Money To An NRE Account

NRE account holders do not face any taxation on funds held, including any interest that accrues over time. This makes it a good choice if you are sending a large amount or expect to frequently send money to India.

Due to the nature of a non-resident external account, all payments are subject to the current exchange rate as all funds from a foreign currency will be converted to INR. The conversion rate will depend on the transfer method used.

It is preferable to use an online money transfer system, so you can see who offers the best conversion rates at any time. Consider using a money transfer comparison sites that compare different money transfer operators side by side in real time. There are many similar online tools for converting your currency into Indian Rupees to ensure that your recipient receives the most money possible and you do not have to send extra in additional transactions to make up any shortcomings.

Guidelines For Sending Money To India

Keep in mind that the different money transfer options will see the amount sent arrive at its destination at different times. Some will be quicker than others.

Money orders can take up to 30 days. While cheques in foreign currency can take anything between 7-15 days, as your bank will sometimes need to verify you agreed to the sending of the cheque before processing can begin.

Sending bank to bank through a bank or a money transfer operator could take up to 5 days. The quickest way to send money to India is via a credit or debit card through online money transfer operators, and this could be received in as little as 15 minutes.

Quick Transfer

Online and wire transfers can take at most 24-96 hours to complete but most transactions with global money transfer companies can take place much quicker, many in real-time.

The only time these time frames will alter greatly is if it is a public holiday in your country or the recipient’s as banks will be closed. It is often still possible to make online transfers through the larger money services even during these periods.


Using online transfers methods are a far safer way to send money, ensuring that your personal information and funds are secure.

To ensure further coverage check that your bank remits your currency to be sent to India without remittance fees or delays. All online services and global and national banks automatically convert the most used currencies like USD, AUD, EUR and so forth, and that’s why many non-resident Indians (NRI’s) set up NRE accounts which ensure they can easily send money to relatives and friends from abroad.

Now that we’ve covered the basics of how to send money to an Indian NRE and NRO account you should have no trouble sending that payment! Refer back to the money transfer tips and if in doubt contact your bank.