How to Transfer Money from India to Another Country: Methods, RBI Rules & Costs

If you’ve ever tried sending money from India to another country for your child’s university fees, supporting family, paying a foreign freelancer, or settling an import invoice, you’ve probably felt the confusion first-hand.

Between RBI rules, FEMA regulations, bank forms, purpose codes, and all the options (banks, Wise, Western Union, and now platforms like EximPe), it’s hard to know what’s actually the best and safest way to move your money.

This guide breaks everything down in simple language. You’ll understand the rules (LRS, FEMA), the main methods (bank transfers, apps, Western Union, drafts), how costs really work, and where EximPe fits in, especially if you’re an Indian business sending serious money abroad.

What Does “Transferring Money Abroad from India” Mean? (FEMA & LRS Basics)

When you send money from India to another country, it’s called an outward remittance. In plain English, this is money going out of India in foreign currency for education, travel, family support, business payments, investments, and so on.

These outward remittances are governed by FEMA (Foreign Exchange Management Act) and the Reserve Bank of India (RBI). For individuals, RBI has created a framework called the Liberalised Remittance Scheme (LRS).

Under LRS, a resident individual in India can remit up to USD 2,50,000 per financial year (aggregate across all purposes allowed under LRS) for things like:

• University fees and living expenses abroad
• Travel expenses and tours
• Gifts and maintenance of close relatives abroad
• Medical treatment outside India
• Permitted investments and property purchases abroad

Certain purposes are not allowed like gambling, lottery, and some speculative transactions, so your bank or platform will ask you to select a purpose code and may reject non-compliant transfers.

Also, note the difference:

• Personal remittances - education, family support, travel, and personal investments.
• Business payments - paying overseas suppliers, SaaS tools, freelancers, or service providers from an Indian business entity (usually routed via your current account and appropriate banking channels).

RBI Rules, LRS Limits and Documents Required (Explained Simply)

Let’s walk through the LRS rules like a simple checklist.

Who is eligible, and what is the limit?

• Only resident individuals (with proper KYC) can use LRS.
• Current LRS limit: up to USD 2,50,000 per individual per financial year, across all permitted purposes combined.
• If you cross this limit, you need prior approval from the RBI, and your bank will simply not process the extra amount without it.

What documents and data do you need?

For almost any outward transfer, banks and regulated platforms will ask for:

• PAN (mandatory for LRS usage).
• KYC – as per your bank or platform (ID, address, etc.).
• Purpose code – tells RBI why you’re sending money (education, import payment, gift, etc.).
• Form A2 – a standard RBI declaration; many banks/platforms generate this digitally now.
• Beneficiary details – full name, address, bank name and address, account number/IBAN, SWIFT/BIC, and sometimes extra local details depending on the country.

Why do transfers get delayed or blocked?

Common reasons your transfer gets stuck:

• Wrong or vague purpose code.
• Beneficiary details don’t match - name mismatch, wrong IBAN or SWIFT.
• You’re trying to exceed your LRS limit for the year.
• PAN not updated / KYC incomplete with the bank or platform.
• Transactions flagged by banks’ AML/compliance checks (sudden large amounts, suspicious counterparties, etc.).

Getting these basics right up front saves a lot of back-and-forth with the bank.

Main Ways to Send Money from India to a Foreign Bank Account

You essentially have four broad routes. Let’s break them down.

International Bank Transfer (SWIFT / Wire Transfer from Your Bank)

This is the classic route: you instruct your Indian bank to send money to a foreign bank account using the SWIFT network.

Most major Indian banks like SBI, HDFC Bank, ICICI, Axis, etc. support SWIFT transfers from their branches and, increasingly, via net banking.

Data you need:

• Beneficiary name and address
• Beneficiary bank name and address
• Beneficiary account number/IBAN
• Bank SWIFT/BIC code
• Purpose code and sometimes invoice/fee details
• Your PAN and KYC with the bank

Typical charges and speed:

• A flat transfer fee (often a few hundred to a couple of thousand rupees) plus FX markup on the exchange rate.
• GST on the fee and forex markup.
• Speed is usually 1-3 working days, depending on time zones, intermediary banks, and compliance checks.

Pros:

• Trusted, regulated, and good for large, formal payments like university fees, high-value invoices, or property-related payments.
• High limits, especially for business payments through current accounts.

Cons:

• Higher FX margin than many modern providers.
• Charges can be opaque between your bank and the recipient’s bank; several fees may be deducted.
• More paperwork and sometimes branch visits, especially for first-time users.

Ideal if you already bank with a large Indian bank and are okay with paying a premium for “traditional” rails.

Online Money Transfer Apps (Wise/TransferWise and Similar Providers)

Apps like Wise (formerly TransferWise) let you send money abroad digitally. You create an account, complete KYC, fund the transfer via bank transfer or card, and they credit the recipient’s foreign account.

Their pitch is simple: mid-market exchange rate plus a transparent fee, usually lower than typical bank FX markups.

Pros:

• Often cheaper than banks for small to mid-sized personal transfers.
• Transparent pricing, fee and rate are shown clearly before you pay.
• Fully online flows; no branch visits.

Cons:

• Primarily consumer-focused; business workflows (invoices, recurring supplier payments, Indian import documentation) are not their core.
• Limits and documentation requirements vary by route; first transfer can be slower due to extra checks.

Wise positions itself as cheaper and more transparent than banks for everyday international transfers, and it often is, especially for personal remittances.

Western Union, Money Transfer Services and Cash Pickup

Western Union and similar services let you send money from India (via agent locations or apps) for cash pickup or sometimes direct deposit into a foreign bank account.

If someone searches “Western Union near me”, they usually want a nearby agent to either send money or receive it in cash.

How it works:

• You pay in INR (cash, card, or bank transfer, depending on the channel).
• Western Union converts and either allows the recipient to pick up cash or credits their bank account.
• Recipient tracks it using an MTCN (Money Transfer Control Number), which you get after initiating the transfer.

Pros:

• Very useful when the recipient doesn’t have a bank account or needs to collect cash locally.
• Huge global network of agents and cash pickup locations.

Cons:

• Effective cost can be higher because a big chunk of their revenue comes from the exchange rate margin, not just the visible fee.
• Caps on amount and frequency; not suited for regular business payments or large invoices.

Good for emergency family support or situations where cash-in-hand is more important than cost-efficiency.

Bank Drafts and Cashier’s Checks (Old-School Methods)

Banks can also issue foreign currency demand drafts or bank drafts, essentially physical instruments payable overseas.

How it works:

• You visit a bank, pay in INR, and they issue a draft in foreign currency in the name of the beneficiary.
• You courier or hand over the draft; the recipient deposits it into their bank.

Issues:

• There are fees for issuing the draft, and clearing time can be very long, from several days to even weeks in some cases.
• Tracking is clunky compared to digital transfers.

These are now largely used in niche cases, such as some universities or government bodies that still insist on drafts. In almost every other case, it’s better to use modern digital rails.

Is International Money Transfer from India Safe? RBI Authorisation & Fraud Risks

Sending money abroad is safe if you use regulated channels and basic common sense.

RBI authorisation matters

Only use:

• RBI-authorised banks, and
• RBI-licensed payment platforms and PA‑CB players

This ensures your transfer is going through systems monitored for AML (anti-money laundering), KYC, and sanctions compliance.

Practical safety tips

• Never share OTP, passwords, or PINs with anyone, even if they claim to be from your bank.
• Beware of phishing links and fake “support” pages that look like real bank/app sites.
• Avoid doing large transfers on public Wi‑Fi.
• Always confirm the exact beneficiary details directly with the recipient.

Those KYC and purpose-code checks are there to protect you and the system. They reduce fraud, terrorist financing, and regulatory risk for both sides.

Smarter Cross-Border Transfers for Indian Businesses

For personal transfers, banks, Wise, or even Western Union might be fine. But if you’re an Indian importer, D2C brand, SaaS founder, or company paying overseas vendors, your needs are very different.

EximPe vs traditional options

EximPe is an RBI-licensed cross-border payment platform built specifically for Indian businesses dealing with international suppliers, SaaS tools, marketplaces, and service providers.

Compared to traditional channels:

• Bank SWIFT transfers:
  • Banks are not built for modern workflows, attaching invoices, tracking many small and large payments, or giving you clear FX pricing.
  • Onboarding and documentation can be slow and scattered across branches and emails.
• Consumer apps like Wise:
  • Wise is great for individuals, but not designed around Indian import compliance, business documentation, or recurring invoice-backed flows.
  • Managing many supplier or freelancer payments at scale becomes messy.

How EximPe helps Indian businesses

• EximPe offers better FX pricing than standard bank markups for typical business corridors.
• Digital, guided flow for businesses - upload invoices, pick the right purpose code, and map payments to suppliers, SaaS tools, or freelancers.
• Built with RBI, FEMA, and PA‑CB rules at the core, so businesses don’t have to manually decode regulations every time.

To understand the complete business payment methods, you can also read our guide on how Indian importers pay overseas suppliers.

When to Use Banks, Wise, Western Union, or EximPe

In short:

• Friends/family, small amounts: bank vs app like Wise.
• Emergency cash and no bank account: Western Union or similar cash pickup.
• Large, recurring, or invoice-backed business payments: EximPe is usually the smarter choice over ad-hoc bank SWIFT or consumer apps.

FAQs on Sending Money from India to Another Country