Sending money to India: NRE, NRO and what to check
In short: money sent from the US to India usually arrives in a bank account. A family member who lives in India can receive it in an ordinary savings account. If you are a non-resident Indian, Indian banks offer NRE, NRO and FCNR(B) accounts, each with different rules. Compare providers on how many rupees arrive, not just the fee.
Accounts for non-resident Indians
The Reserve Bank of India (RBI) sets the rules for accounts held by non-residents. In broad terms:
| Account | Held in | Typical use | Moving money back abroad |
|---|---|---|---|
| NRE (non-resident external) | Rupees | Money earned abroad and sent to India | Freely, with the bank's checks |
| NRO (non-resident ordinary) | Rupees | Income in India, such as rent or a pension | Limited, up to a yearly cap set by the RBI |
| FCNR(B) | Foreign currency, such as US dollars | Fixed deposits without exchange-rate risk | Freely, with the bank's checks |
Eligibility, documents and tax rules differ between these accounts, and they change. Ask the bank in India which account suits your purpose, and a tax professional (in the US and India) how the interest and transfers are treated.
Sending to a family member in India
If the person receiving the money lives in India, it can usually go straight into their own savings account. You will need their name exactly as the bank has it, the account number and the bank's IFSC code (an 11-character code that identifies the branch). Some providers can also pay into other options; ask what they support and check every detail before you confirm.
Comparing the real cost
Every transfer has two costs: the fee and the exchange-rate markup (the gap between the rate you get and the mid-market rate). A "zero fee" offer can still cost more if the rupee rate is worse. Compare the number of rupees that will arrive for the same dollars, on the same day. Our remittance cost comparer does the sum for two options. First-transfer offers often end after one use.
Your rights when you send from the US
Most US providers must show the exchange rate, fees and amount to be received before you pay, let you cancel within 30 minutes in most cases, and investigate errors you report within 180 days. Our guide Sending money home covers these rules.
Stay safe
- Use a bank, credit union or licensed money transfer company. Informal channels such as hawala or hundi can be illegal and leave you with no protection.
- Beware of anyone offering a much better rate through a personal account, or asking you to receive and pass on money for others.
- Keep receipts: they show where the money came from if the receiving bank asks.
Handy tools
- Remittance cost comparer: compare two transfer options by how much arrives.
- Salary converter: hourly, weekly, monthly and yearly pay, side by side.
General information, not financial advice. Rules, fees and rates change and depend on your situation. Check with your bank, the provider or a qualified professional before you decide.
Sources
- Reserve Bank of India: FAQs: accounts in India by non-residents
- Reserve Bank of India: Accounts in India by non-residents (FAQ, PDF)
- CFPB: Money transfers
- World Bank: Remittance Prices Worldwide