Best Way to Transfer Money From India to the USA – Complete Guide

Geeta Chauhan
July 12, 2024
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The United States of America is one of the most desirable countries for students to pursue higher education. A large number of students migrate to the USA from India every year. The United States of America is one of the most expensive countries in the world. Living and education costs are way higher than in other countries. Students require money to fulfill their requirements within time. In such a scenario, parents need to be smarter in terms of transferring money. There are several options available for money transfer, but it is crucial to choose the right method. Choosing the right method helps you send money on an urgent basis with minimum charges. Here in this specific blog, we have mentioned the best ways to transfer money from India to the USA.

What are Methods for Outward Remittance from India to the USA

First, let’s discuss the methods for outward remittance from India to the USA. Here, we have mentioned the most common methods for transfer money from India to the USA.

SWIFT : It stands for Society for Worldwide Interbank Financial Telecommunication Network. SWIFT is one of the most commonly used methods to transfer funds from India to the USA. It is basically a messaging protocol that is used to send data from one bank to another.
FCDD: A foreign currency demand draft (FCDD) is a form of draft used to transfer money from one country to another. It has foreign currency with the desired amount that needs to be transferred. It is considered the safest and fastest method to transfer money from one country to another. You must know that FCDDs can be reissued if they get lost or stolen.
HiwiPay: To transfer money from India to the USA you can choose Hiwipay. It offers faster money transfer services with the required charges. If you urgently need to transfer the money, you can rely on Hiwipay. Your money can be transferred within 24hrs to 48hrs.

Seamless-Money-Transfers-Abroad-Within-24-Hours

Documents Required for Transfer Money From India to the USA

Transferring money from India to the USA or to any other country requires certain documents to be submitted. Here, in this specific section, we have mentioned specific documents that you may require while transferring money to the USA.

Any government ID is required to send a money transfer from India to the USA. This includes a Voter ID, Adhar card, Passport, etc.

A copy of your PAN card is also required to transfer money from one country to another.

Evidence of the purpose of sending money is also required. You may be required to attach a copy of the tuition fee, university fee, etc.

A copy of the beneficiary’s passport is also required while transferring money from India to the USA.

Things to Consider When Choosing a Method of Sending Money to the USA

Before choosing any method to transfer money from India to the USA, it is essential to consider a few things. Let’s have a look at which factors should be considered before transferring money to foreign countries.

Exchange Rates: Money exchange rates may vary from method to method. It is crucial to double-check the exchange rates before going with any specific method.
Transfer Fees: It is crucial to compare the transfer fees before choosing a money transfer service. You must know that this fee can vary with huge differences. Therefore, be mindful before choosing any certain services to transfer money.
Speed of Transfer: When transfer money from India to the USA, you must consider the speed of transfer. Depending on the urgency of the transfer, you need to analyze first which method will be best for you. Usually, every money transfer method takes more than 72 hours, but with Hiwipay, you will be able to transfer money within 48 hours at the maximum.
Security & Reliability: Whenever you go to transfer money, it is crucial that you must look out for safety measures. There are several money transfer services that offer immense security in terms of transferring money.

Main Purposes of Transfer Money From India to the USA

Now, some of you must be wondering about those situations when you may be required to transfer money from India to the USA. Here are some of the main purposes of transfer money from India to the USA.

Studying in the USA: This is one of the major reasons you may be required to transfer money. For study purposes, the Reserve Bank of India allows you to transfer up to US$2,50,000 to students studying in any US-based university. If you want to send an amount more than this, then you will be required to provide genuine evidence from the university.

Traveling to the USA For Personal Reasons: The RBI will allow any Indian resident to transfer up to US$100,000. $250,000 to licensed brokers or full-service money changers for personal travel to the US. in a financial year. No matter how many times an Indian visits the US in a fiscal year, this restriction applies as long as their total foreign currency balance is less than US$250,000, and they can bring an excess amount(s) of up to 3,000 USD (or equivalent) ) per trip in. The balance can be transferred by traveler’s check or foreign currency. For planned trips to the US included under the LRS limit, all expenses relating to travel, including overseas hotel/accommodation expenses and expenses for rail, road, and water transport outside India.

For Healthcare Expenses: If you are traveling to the USA to seek medical treatment, you are allowed to make a transfer of US$2,50,000 as per the RBI guidelines. However, doctors and medical care providers have the option to increase the limit above this limit. Other than that, an authorized dealer can also provide foreign exchange to a sick person in the USA.

Moving Permanently to the USA: Individuals planning to travel to the United States may use AD Class I banks and AD Class II money changers to transfer foreign currency up to $250,000. At this time, U.S. transfers may be permitted. They are following the long-term U.S. unplanned expenses. It is not possible to use this method to earn points or credits towards qualifying immigration by purchasing real estate, government bonds, infrastructure, or other offshore assets.

Key Points to Be Aware of Transfer Money From India to the USA

While transferring money from India to the USA, there are certain key points to be aware of.

While opting for money transfer services, it is essential to analyze the exchange rates. You must be aware of the fact that foreign exchange rates fluctuate from time to time.

Never compromise on security; select one of the most secure and trusted money transfer providers to avoid any mismanagement.

It is also crucial to be aware of transaction charges. These charges may vary depending on the service provider. So, it is important to analyze the transaction charges before implementing further processes.

Another important thing you should look out for is the money transfer limit offered by the money transfer service providers. According to the RBI guidelines, you can transfer up to US$2,50,000. However, there are other money transfer providers who offer transfers for amounts exceeding this.

You must lookout for the money transfer time as well. According to your requirement you must look out quick money transfer services. Usually money transfer can take upto 72hrs but with Hiwipay you can transfer money from India to the USA within 48hrs.

Conclusion

In conclusion, we can say that indeed there are certain best ways to transfer money from India to the USA, but it is crucial that you must lookout for best service providers. While transferring money from one country to another it is essential to know the exchange rates, transfer time, money transfer fees and security provided by the money transfer entity.

FAQ of Transfer Money From India to the USA

How can I send money to the USA from India?

Certain methods can be used to transfer money from India to the USA. These include SWIFT, FCDD, and Hiwipay. With Hiwipay, you can transfer money to the USA within 24 to 48 hours.

How much money can be sent from India to the USA?

For study purposes, the Reserve Bank of India allows you to transfer up to US$2,50,000 to students studying in any US-based university. For other purposes, there are different limitations on money transfers.

Do I need to pay tax if I transfer money from India to the USA?

Yes, you may be required to pay taxes if you transfer money from India to the USA. However, it also depends on the amount you are transferring.

Can I transfer money to a US bank account?

Yes, you can also transfer funds from India to the USA through your nearest bank branch. Axis bank, HDFC, ICICI, Yes Bank, and Kotak Mahindra are some of the banks in India through which you can transfer money to the USA if you have a bank account in such banks.

What is the cheapest way to send money to the USA?

Currently, if you want to send money to the USA and looking for the cheapest way, you must go to Hiwipay. Their impeccable services offer you the cheapest way to send money to the USA. It is not only the cheapest way but also one of the fastest way.

What is the safest money transfer app?

Nowadays, you can use the Hiwipay money transfer services to transfer money from India to the USA.