How to Send Money Abroad From India: Methods, Limits and Documents

To send money abroad from India, you move funds through an Authorised Dealer bank or an RBI-regulated remittance platform, under the Reserve Bank of India's Liberalised Remittance Scheme (LRS).

Because the scheme is PAN-based, a resident individual can send up to USD 250,000 per financial year for approved purposes such as education, travel, family support, gifts and investment, as of July 2026.

You will need your PAN, a purpose for the transfer, and above ₹10 lakh a year you may pay Tax Collected at Source (TCS).

Businesses paying for genuine imports or services follow current-account rules and have no LRS cap.

Which route is the best way to send money abroad from India depends on the amount, the speed you need, and how much you lose to fees and the exchange-rate markup.

Use the table below to weigh the options side by side, then read the detail underneath. Costs are indicative and shift with the provider and the amount you move.

Most people pick a bank wire out of habit, then overpay.

The more affordable route is often an online platform, and the gap between the two on a single large transfer can run to tens of thousands of rupees.

Understanding the inward remittance vs outward remittance split first helps, because it tells you which set of RBI rules actually applies to your transfer.

There is no single best way to remit.

Each route trades off speed, cost and convenience, so match the method to the transfer rather than to habit.

If you are weighing a bank wire against a routed payment, this explainer on wire transfer vs bank transfer sets out the difference.

Bank wire transfer (SWIFT)

You instruct your bank to send funds to a beneficiary's overseas account over the SWIFT network.

See how SWIFT payment works for the full mechanics.

It is widely accepted and works for large amounts.

The catch is cost, since the transfer fee, the exchange-rate markup and any intermediary-bank charges stack up, and funds typically take one to five business days.

Bank online remittance portals

Most large banks now let you make an international money transfer from India without visiting a branch.

ICICI Money2World, HDFC RemitNow and similar portals handle LRS transfers online with the paperwork built in.

Rates still follow the bank's standard forex pricing, so they are convenient rather than cheap.

Specialised online remittance platforms

RBI-regulated fintech and forex platforms compete on price and transparency.

They show the exchange rate and fee upfront and let you send money abroad from India online, which suits education fees, family maintenance and recurring personal transfers where cost matters more than a banking relationship.

Authorised money changers and forex dealers

Licensed dealers arrange outward remittances and foreign-currency drafts, often with in-person support. This is useful when you want a walk-in and hand-holding through the purpose codes.

Foreign currency demand draft

A physical draft in the beneficiary's currency, couriered abroad and deposited like a cheque. It is slow and largely a fallback where a digital transfer is not possible.

Individuals transfer money from India under the Liberalised Remittance Scheme, which caps outward remittances at USD 250,000 per financial year, as of July 2026.

The limit is PAN-based and resets on 1 April each year.

It covers current-account purposes such as travel, education and family support, and capital-account purposes such as overseas investment or buying property.

A few rules decide how far your quota stretches:

• The limit is per person. A family of four can pool up to USD 1,000,000 in a year, because each member uses their own PAN. A couple funding a child's education abroad can therefore move USD 500,000 between them.
• Residents only. LRS does not apply to companies, partnerships or trusts, which remit under separate rules.
• The transaction type matters. Whether a transfer counts as a capital account vs current account transaction changes the documentation the bank asks for.
• Some purposes are barred. LRS cannot be used for lottery, margin trading, or transfers to countries flagged by the Financial Action Task Force.

Businesses do not use LRS at all.

Genuine import payments, software and service fees, and other current-account transactions have no fixed annual cap, as long as the payment is backed by an invoice or contract and cleared by an Authorised Dealer bank.

The full mechanics sit in this LRS Liberalized Remittance Scheme guide.

Tax Collected at Source is the tax layer on outward remittances.

As of July 2026 (FY 2026-27), no TCS is charged on LRS remittances up to ₹10 lakh in a financial year. Above that threshold the rate depends on the purpose:

• Education and medical: 2%. Education funded by a loan from a recognised financial institution attracts no TCS.
• Overseas tour packages: 2%, with no threshold.
• All other purposes such as investment, gifts and property: 20%.

Here is how that plays out. Say you send ₹15 lakh to a foreign university for self-funded education.

The first ₹10 lakh is TCS-free, and the ₹5 lakh above it attracts 2%, so ₹10,000 is collected.

Send the same ₹15 lakh as an overseas investment instead, and because the higher rate applies, the ₹5 lakh excess attracts 20%, or ₹1,00,000.

TCS is not money lost.

It is adjusted against your income-tax liability and refunded when you file your return.

Since these rates were revised recently, confirm the figure for your purpose in this guide to TCS on foreign remittance before you transfer.

The paperwork is lighter than most people expect for personal transfers, and heavier for business ones. For an individual LRS transfer you generally need:

• PAN card, which is mandatory for every outward remittance.
• A government photo ID such as Aadhaar or passport.
• Your bank details, plus the beneficiary's account number and their swift code or BIC.
• Form A2, a declaration of the purpose of the remittance.
• A purpose code that classifies why you are sending money.

Purpose-specific proof may be asked for, such as a university invoice for education or a booking for travel.

The correct purpose code for outward remmitance matters, because it drives both compliance and tax treatment.

Businesses additionally provide invoices, contracts and, where relevant, Form 15CA and Form 15CB from a chartered accountant.

The sticker fee is rarely the real cost. Three lines make up what you actually pay:

1. The transfer fee

A flat charge per remittance, often ₹500 to ₹1,500 at banks. These wire transfer fees vary widely by provider.

2. The exchange-rate markup

The gap between the live mid-market rate and the rate you are given. This is usually the largest cost and the least visible, because it hides inside the rate.

3. Intermediary charges

On SWIFT wires, banks in the chain can each deduct a fee, so the beneficiary sometimes receives less than you sent.

A worked example makes the markup clear. Sending USD 5,000 at a live rate of ₹95 should convert to ₹4,75,000.

A 2% markup quietly costs you ₹9,500, which is more than most flat transfer fees combined.

Comparing your quoted rate against the mid-market rate is the single most useful check you can run, since this guide on bank charges for foreign remittance shows how to spot the hidden ones.

Step 1: Pick your method

Base it on amount, speed and cost. Large one-off transfers often justify a bank wire, while recurring personal transfers favour a cheaper online platform.

Step 2: Gather the beneficiary details

Full name, bank name and address, account number or IBAN, and SWIFT/BIC code.

Step 3: Complete the declaration

Fill Form A2 and select the correct purpose code.

Step 4: Submit documents and pay

Upload your PAN and ID, fund the transfer, and pay any applicable TCS.

Step 5: Track and confirm

Note the reference number and confirm credit with the beneficiary. A typical swift transfer time is one to five business days.

• Large amount, one time such as property or investment: a bank wire gives a clear paper trail, despite the cost.
• Recurring personal transfers such as education or family support: a transparent online platform usually wins on total cost.
• You want in-person help: an authorised money changer walks you through the documents.
• Speed above all: compare stated settlement times, and remember intermediary banks can add a day.

Where the route allows, there are practical ways to avoid international wire transfer fees without switching provider. Whichever route you take, judge providers on the total landed cost and the rate against mid-market, not the headline transfer charge alone.

This guide is educational and is not tax, legal or financial advice. Rates and rules change, so confirm your specific case with a chartered accountant or the official RBI and Income Tax Department sources before you remit.

Sending money out is only half the cross-border picture.

If you are a freelancer, exporter or small business being paid by overseas clients, the problem flips, because you want money coming into India quickly, at a fair rate, with the compliance handled.

That inbound flow is what Xflow is built for. You get an Xflow Receiving Account, a routing account issued by the banking partner that collects payments in 25+ currencies from 140+ countries.

It converts at a transparent mid-market rate rather than a hidden bank markup, and settles to your Indian bank account the next business day.

A Foreign Inward Remittance Advice (FIRA) is issued automatically for every withdrawal, so your export records stay clean.

To be clear, Xflow is built to receive money into India and does not process outward or LRS remittances, so for sending money abroad you will still use one of the methods above.

But for getting paid from abroad it removes much of the cost and paperwork, as this guide on how to receive money from abroad explains.