You might need to make an international money transfer for business purposes, to support your family if you are living abroad, or to liquidate overseas assets. When engaging in overseas money transfers, several factors like fees, deposit limitations, ID and document verification, transaction speeds, and taxes come into play.
Money transfer providers (MTP) have made sending money to India from the UK transparent, easy, cheap, and fast. This guide will help you explore MTPs offering the lowest fees, fastest delivery times, the best apps, and the most secure platforms.
Top Money Transfer Providers to Send Money to India
Money Transfer Provider | Fees | Deposit Methods | Regulator |
|---|---|---|---|
TorFX | No transfer fees | Bank Transfer | Regulated by the FCA and the Australian Securities & Investments Commission regulated |
WISE | Fixed fee of £0.28+ 0.55% of total amount | Bank transfer, debit card, credit card, PISP (Payment Initiation Service Provider), Apple Pay, Google Pay | FCA regulated |
XE Currency | $0 for above $500 transactions. | Bank deposit, wire transfer, credit card and debit card | Member of Euronet Worldwide. Compliant with Europe's General Data Protection Regulation, Canada's Privacy Act, and the US Privacy Act. |
The award-winning, FCA-regulated TorFX offers a Regular Overseas Payments service to set up recurring payments to India from the UK. This could be useful if you live abroad and support your family back home or make monthly mortgage payments. The service is available for those paying between £500-£10,000 per month for at least six months.
TorFX goes a step further to provide a dedicated account manager to place payment contracts and solve any issues you have. You can simply dial up the person, fix a rate for a deposit amount, and confirm fees for executing an order.
In order to have better control over exchange rates, you can explore forward contracts, stop contracts, or market orders. You can set an exchange rate up to two years in advance!
With a 4.9/5 Trustpilot rating, TorFX’s online platform allows you to pay up to £100 through bank deposits without any transfer fees with a three business-day deadline. Pay up to £25,000 using the online platform, and a larger amount over the phone if you submit relevant documentation. If you have a Sterling or a Euro debit card, you can fund the deposit using them as well.
Rest assured, your app data is safe with biometric and email verification, while its desktop platform is secured with TLS encryption.
- You can place market orders, forward contracts for competitive exchange rates.
- TorFX holds a Level 1 credit rating from Dun & Bradstreet.
- Has won multiple awards for transfers and customer service
- Markup fees starting at 0.2%.
- Detailed verification process to create an account.
With the option for a multi-currency account, Wise claims to settle 50% of transactions at live mid-market rates in seconds. For deposits to India from the UK, they charge a transfer fee of a fixed £0.28 + 0.55% in variable fees for up to £100,000 per month. Higher payments depend on bank authorisation.
Wise is an FCA-regulated entity and also authorised by regulators around the world. Your money and sensitive information are well hidden behind layers of security such as two-factor authentication on their app. Their enterprise solution, offering a range of API integrations for businesses, is also fortified with bank-grade security, and constantly monitored by a dedicated FinCrime operations team.
UK businesses employing Indian workers can leverage the batch payment tool from Wise to pay overseas employees at once using its global payments platform. On the Wise app, you have a wide range of ways to fund transactions like Google Pay, Apple Pay, SWIFT system, and the traditional bank deposits and credit/debit card options.
- Certified high security.
- Fees decline on payments above £100,000.
- Track payment delivery in the app.
- Fees could be lower for faster delivery options.
- No live chat support.
XE Currency lets you send money up to ₹50,000 (£ 473.6) directly to the widely-used Paytm e-wallet in India almost instantaneously. You can avoid transfer fees for bank deposits if you are paying anything above $500. The MTP lets you transfer up to $535,000 to a recipient in India.
Businesses engaged in logistics, online retail, or global payroll processing can benefit from dozens of its API integrations like the XE Salesforce Connector for businesses dealing in multiple currencies over the Salesforce CRM platform.
A user-friendly app allows you to easily navigate international payments that you can fund via direct bank deposits, credit/debit cards, or cash pickup arrangements. You could be subject to third-party credit card fees and a markup fee starting at 0.4%. However, card payments are usually completed within one business day. The MTP is a member of Euronet Worldwide, and is compliant with Europe's General Data Protection Regulation, Canada's Privacy Act, and the US Privacy Act.
If you have submitted the wrong recipient details for cash pickup, you are allowed to correct it after confirmation but before the funds are collected for delivery. For any queries, you can reach them over live chat, phone, and email support.
- Very secure way of making cross-border payments.
- Interactive rate alerts, currency charts and trends.
- Transparent fees.
- Refunds take up to 10 business days.
- Variable markup fees.
How to Send Money to India Using a Money Transfer Provider
The process of sending money to India by using an online money transfer service is simple. You only need to follow these three steps to execute a transaction!
Step 1: Compare Providers to Find the One That Best Fits You
Step 2: Sign Up with the Chosen Provider
Step 3: Transfer Money
What Are the Fastest Ways to Send Money to India?
There are several UK MTPs that partner with Indian banks, and are capable of completing your international payments in minutes. These regulated MTPs are cost-effective and have a proven track record of managing money exchange between the UK and India.
Money Transfer Provider | Transfer Speed | Fees | Get Started |
|---|---|---|---|
Western Union | In real-time | £0 transfer fees; third-party, exchange rate fees may apply | |
Wise | In seconds | £0.28 + 0.55% in variable fees. | |
Instarem | In Minutes | 0.25%-1% in transfer fees. |
MTPs like Western Union have tie-ups with India’s Unified Payments Interface (UPI) platforms like Paytm and Google Pay to enable real-time payments via a range of deposit methods. The amount you can transfer using similar MTPs depends on your documents and ID verification.
What Is the Cheapest Way to Send Money to India?
Some providers offer free money transfers to new customers, so don’t forget to utilise them. Know that the cheapest money transfer service could take longer to process payments, but they remain secure and user-friendly.
Money Transfer Provider | Fees | Transfer Speed | Get Started |
|---|---|---|---|
WorldRemit | £1.99; first three transfers free | In minutes | |
Remitly | £1.99; first transfer free | In three to five business days. | |
Key Currency | No transfer fee for payments above £500. Markup fee decreases with transfer size. | In two business days for SWIFT transfers. |
What Is the Safest Way to Send Money to India?
While India’s digital payments infrastructure has rapidly scaled over the last decade, it is still yet to enforce the proposed data protection laws that will safeguard those involved in online lending, investing, and transactions.
So if you are sending money to a stranger in India, especially for business purposes, you must verify the credentials of the person beyond simple banking details—for example, details of the business via the GSTIN number issued to all businesses in the country.
Bank transfers to India are safe but could incur hefty fees for medium processing speeds. If you are opting for an MTP, ensure it is regulated and has multiple security features like biometric verification, two-factor authentication, TLS encryption, and fraud resolution teams. If the MTP offers web support, check for the “https” mentioned in the site URL, which indicates a secure website.
Once you have the best provider for the transfer, double-check the details of the recipient to send funds securely.
What Are the Best Apps to Send Money to India?
If you prefer apps for international money transfers, compatibility and a smooth UI are two app functionalities you should look out for. Some MTPs like Wise and Ria Money Transfers offer feature-rich apps that are super-responsive and protected by state-of-the-art encryption methods.
Money Transfer App | Transfer Time | Fees | Download Now |
|---|---|---|---|
Ria Money Transfers | Within four business days | $1+exchange rate margin | |
Wise | In seconds | £0.28 + 0.55% in variable fees. | |
Instarem | In Minutes | 0.25%-1% in transfer fees. |
Available on both iOS and Android stores, these MTP apps make international funds transfer on the go secure, seamless, and transparent. These apps compile your account activities, payment methods, and live exchange rate updates, among other information for a comprehensive all-in-one view to help you carry out well-informed overseas transactions.
Things to Consider When Sending Money to India
Transferring funds to India from the UK via the right MTPs is often a hassle-free process. However, payments could be monitored by regulators or subject to local taxes if the amount exceeds specified limits.
Consider the following pointers to ensure a smooth international payment experience:
Local Authorities
The Reserve Bank of India (RBI) operates under the Foreign Exchange Management Act, 1999 (FEMA), and oversees all inbound and outbound remittances in the sub-continent. The FEMA guidelines were designed to prevent money laundering and tax evasion.
It is always recommended that you specify the reason for transferring funds to India for clarity by selecting the correct purpose code in the remittance form. You may check the RBI codes here.
In the UK, the Financial Conduct Authority (FCA) and the HM Revenue & Customs (HMRC) are always monitoring overseas payments for any suspicious activity.
How Much You Are Sending Abroad
There is no limit to how much money you can send to India for personal reasons under RBI’s Rupee Drawing Arrangement (RDA). However, trade-related funds are capped at ₹1.5 million (£ 14,208).
RBI’s Money Transfer Service Scheme (MTSS) has an upper limit of up to $2,500. The MTSS system allows 30 remittances annually and is often used by individuals sending their income to their family in India as financial support.
Your money transfer provider might also have a cap on transaction size. However, you need not worry if you have to send a big amount frequently or in a lump sum.
Several MTPs often allow you to unlock higher limits and even let you choose a custom limit if you can furnish sufficient documentation showcasing purpose, income proof, bank statement, or sources of funds.
The Cost of Money Transfer
The cost of international funds transfer depends on factors like transaction speeds, geographical location, choice of MTP, and transfer amount.
Sending money to India generally attracts transfer fees, currency conversion charges, and third-party fees. Your transaction fees generally increase with the amount you are sending. If you are funding the transaction using your credit card, third-party fees might be applicable. These charges also arise in the form of charges imposed by the receiving bank in India for processing inward remittances.
You can avoid them by using MTPs that opt to generate revenue only from currency conversion charges. For better exchange rates, you could leverage payments via market orders or forward contracts.
You can review all fee details on MTP apps or web interfaces before accepting them.
Payment Type and Reason for the Transfer
You can send money to India for personal as well as business purposes.
Several MTPs offer API integrations, multi-currency accounts, and competitive exchange rates, among other features to streamline the billing process and facilitate business payments.
Business accounts from MTPs often come with higher limits but are relatively complex to set up in terms of paperwork and verification.
Personal transfers can be categorised as gifts to relatives or family members in India. Bear in mind that consistent payments can be looked upon as a source of income, and could be subject to local taxes if not dealt with.
Tax Regulations in India
The FEMA guidelines, which oversee Indian foreign trade policy, specifically mention that if you send money to a family member for financial support or as a gift, it is completely exempt from taxes.
Funds from universities, foundations, medical institutions, inheritance or even marriage are also considered tax-free. However, any gains generated from investing the amount are liable to be taxed.
The Central Board of Direct Taxes (CBDT) is responsible for computing taxes as well as verifying and processing income tax returns in India.
The regulators also state that if you transfer funds exceeding ₹ 50,000 a year to a friend or a stranger in India, the amount exceeding the limit will be subject to taxes. The person must report the taxable amount while filing their returns. Meanwhile, business payments are taxed as income in India, hence must be reported by the recipient in India as business income when filing taxes.
In the UK, the HMRC has mandated that you can send up to £3,000 to India as a gift without attracting taxes. The exemption stood at £1,000 per person for wedding gifts and £5,000 for a child.
What Do You Need to Send Money to India?
Sending money to India would generally require the following details:
Recipient details including name and complete residential or business address
Recipient bank name and account number
Indian Financial System Code (IFSC) of the recipient’s bank branch
Associated SWIFT code
UPI ID or phone number for wallet transfer
Valid government ID
As mentioned earlier, the sender must declare the purpose code for each UK-India transaction accurately in the RBI remittance form which will be useful for the recipient’s tax purposes.
What Do You Need to Receive Money in India?
For cash pick-ups, the recipient can use the confirmation code shared by the sender to receive the money in physical form at any of the designated pick-up locations, without requiring a bank account.
For all other forms of deposits or e-wallet payments, the receiver must have the following:
Valid bank account
Current residential address
A Unified Payments Interface (UPI) ID or linked phone number for wallet transfer
Valid government ID
