Sending money to your family and friends in the US is no longer a hassle thanks to the advanced technology.
However, most people are not aware of the multiple options that exist.
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5 Ways on How to Transfer Money From India to US
This method is also called wire transfer. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication.
It’s an offline process where you need to visit the bank and fill up the transfer form with details like name of the beneficiary, account number, address of the bank and swift code.
After you submit the form, money is debited from your account and credited to the beneficiary account within 3-5 days.
Please note that you will incur an international transaction fee for the same.
This fee is dependent on the transfer amount and your bank.
This service is offered by many banks like ICICI, SBI, AXIS, HDFC, etc.
You can send money to the US through foreign currency demand drafts.
This is perhaps the slowest of all options and can be used on a planned basis when there is no emergency. Demand drafts are much cheaper than wire transfers.
You just have to pay your bank a demand draft fee and nothing to the foreign bank receiving the money.
This process involves visiting your bank and making a demand draft for the amount you want to transfer.
This draft will be made in the dollar and the equivalent rupee amount will be deducted from your account.
However, the problem with demand drafts is that the process takes much longer to transfer money.
It will take 7-10 days for the recipient to receive the draft and encash it.
This is another way provided by most banks in India to transfer money to the US. You will find an “outward remittance” option in third-party fund transfer section.
You must add the beneficiary details first and check the limit and fees that are applicable for the transfer.
The fee will depend on the amount to be transferred.
MoneyGram offers easy transfer options. It’s convenient to send money online or in person for cash pick-up or direct to bank.
You can send money online to the recipient bank account who will receive it in 3 days.
If it is sent to a MoneyGram agent at the desired location, the money can be picked up by the receiver.
The fees for the transaction will vary depending on the amount.
PayPal is another option that can be used to transfer money to US.
Create an account in India and link your bank account to it. On logging into your account, you can transfer the money to another PayPal account in the USA by using the “send money” option. Note that the exchange rate depends on the day of the transfer.
The fees charged by PayPal for this service are slightly on the higher side and dependent on the amount.
So the next time you want to send money, you can choose any of the above options depending on your need.
Now, you may be wondering how much money can be transferred to the USA. Let’s jump into that quickly.
Under the Liberalised Remittance Scheme (LRS), all resident individuals, including minors are allowed to freely remit up to USD 250,000 per financial year (April – March) for any permissible current or capital account transaction or combination of both.
In case of remitter being a minor, the LRS declaration form must be signed by the minor’s guardian.
There are no restrictions on the frequency of remittances under LRS but the total amount should be within the cumulative limit of USD 250, 000.