Moving your money to India
Moving years of savings is often the biggest money transfer you'll ever make. A small difference in the exchange rate can cost lakhs. Here's how to do it well.
The short version
Look at the rate, not the fee
- Most of the cost hides in the exchange rate, not the transfer fee
- Compare what arrives in rupees for the same amount
- The mid-market rate (the one on Google) is your benchmark
Bringing your money home isn't taxed
- Your savings aren't income when they arrive in India
- India taxes what the money earns afterwards, by your status
- Keep records of where it came from
Don't bet on the rate
- Nobody can predict the rupee
- Moving in a few parts over weeks or months evens out the rate
- Keep what you'll spend abroad in that currency
Ways to send money
| Your bank abroad (wire) | Transfer services | Indian banks' remittance services | Exchange houses (Gulf) | |
|---|---|---|---|---|
| Exchange rate | Often 2–4% worse than mid-market | Close to mid-market | Close, often good for large sums | Competitive |
| Fees | Often a fixed wire fee | Small, shown upfront | Low or none | Low |
| Large amounts | Yes | Limits vary by service | Yes, often with better rates | Yes, may need ID and proof of funds |
| Speed | 1–3 working days | Minutes to 2 days | Same day to 2 days | Minutes to 1 day |
Typical, not fixed: get a quote from two or three providers for your amount on the same day, and compare the rupees that arrive.
Which suits you?
- Regular transfers while you're still abroadTransfer services or your Indian bank's remittance service, into your NRE account.
- A large sum, such as house sale moneyAsk your Indian bank and your bank abroad for a better rate on a large amount; split it over a few days if the rate is volatile.
- You live in the GulfExchange houses and Indian banks' Gulf services are quick and cheap; your money is already in dirhams or riyals, pegged to the dollar.
- You want to keep some money in foreign currency after you moveMove it to a Resident Foreign Currency (RFC) account in India, or keep it abroad.
Good to know
- Send to the right account. While you're an NRI, send money from abroad to your NRE account (or FCNR deposit). After you move, your bank converts it; see NRE vs NRO vs FCNR.
- Keep the paper trail. Ask for a foreign inward remittance advice or certificate (FIRA/FIRC) for large transfers. You'll need it to show where money came from, for a home purchase or for the tax office.
- Carrying cash: declare foreign currency notes above US$5,000, or more than US$10,000 in all, to customs on arrival. Bank transfers are safer anyway.
- Sending money abroad later: as a resident you can send up to US$250,000 a year under the Liberalised Remittance Scheme. Above ₹10 lakh a year, tax is collected upfront (TCS) for most purposes, which you can claim back in your return.
Questions
Is money I bring to India taxed?
No. Bringing your own savings to India isn't income. Only what the money earns after you're resident, such as interest, rent or gains, can be taxed.
What's the cheapest way to send money to India?
Usually a transfer service or an Indian bank's remittance service, because their exchange rates are close to the mid-market rate. Compare the rupees that arrive, not just the fee.
Should I wait for a better exchange rate?
Nobody can predict the rupee. Moving a large sum in a few parts over weeks or months avoids putting everything on one day's rate.
Is there a limit on how much I can bring to India?
No. There's no limit on bringing money into India through banks. Banks may ask about the source of large amounts.
Can I keep my money abroad after I move back?
Yes. You can keep bank and investment accounts abroad that you opened while you were an NRI. Once you're ordinarily resident, report them in your Indian tax return.