What’s the cheapest way to send money from India to a foreign country?

By CA Manish Mishra, Founder, GenZCFO

Although a swift transfer would be the ideal option, both time efficiency and the cost of money transfers from India play an equally important role. It is just as critical to look for the cheapest channel when paying college fees, sending money to support dependents, or keeping a business going. This information will alert you to better choices.

1. Financial Transfer Services Online

 Compared to traditional banks, fintech services such as Wise (previously TransferWise), Revolut, Remitly, and Xoom (by PayPal) frequently provide better exchange rates and reduced fees. These services are renowned for being transparent, outlining the precise cost and the amount the client would get. One of the most affordable and dependable choices is Wise, which specifically uses the mid-market exchange rate and charges a small fee.

2. Forex Startups & Services

 You can send money overseas at cheap exchange rates and minimal fees with specialized forex sites like BookMyForex and Instarem. These platforms can frequently conduct transfers more quickly than banks and are approved by the RBI.

3. SWIFT (International Bank Transfers)

 SWIFT is a way for banks like SBI, HDFC, ICICI, and Axis to send money abroad, but it can be expensive because of hefty fees, bad exchange rates, and extra bank charges for the middleman. It is not the least expensive, but it is safer.

4. Limited Use UPI for NRIs

 Even while UPI International is growing, its reach is still restricted to NRIs and retail payments. Large remittances are not yet appropriate for it.

Important Tip: Never compare fees alone; always compare entire prices. You could have to pay extra for a platform with no fees, but a bad exchange rate.

Online transfer services like Wise are the quickest and least expensive way for most customers to move money from India. By the Liberalized Remittance Scheme (LRS), always confirm that the provider has RBI authorization.