How to Wire Money From the USA to India (Fees & Time)?

Picture this: You are expecting a payment from a vendor in the USA. After they initiate the payment, your money goes on a journey across borders before finally arriving in your account. But when it does, it's lower than expected. 

In June 2025 alone, U.S. businesses initiated over 18 million transfers, valued at over $96.7 million. With average daily volumes of transfers reaching around 913,000, it is clear that global commerce isn’t just about selling products overseas anymore. It is about moving money fast, securely, and at scale while maintaining profits.

In this article, we’ll explain how wire transfers work from the USA to India, hidden costs to be aware of, and why picking the right partner can save you time and money.

• A wire transfer to India from the USA refers to a secure and accurate electronic transfer of funds made through the SWIFT network. This network ensures encrypted communication between banks, allowing funds to move securely across borders with proper authentication and verification at each step.

• Selecting the correct wire transfer method is essential as it can affect costs, processing speed, and reliability, and helps individuals and businesses avoid unnecessary delays, hidden charges, and complications.

• Despite being secure and reliable, wire transfers face limitations such as high fees, transaction delays, and strict compliance requirements. Moreover, additional charges from intermediary banks and unfavorable exchange rates can reduce the amount received.

A wire transfer to India from the USA means transferring money electronically from a bank account in the USA to a bank account in India. This is normally conducted through the SWIFT network using a SWIFT code for India, also called the BIC or Bank Identifier Code. It is an 8 to 11-character code that helps in identifying banks for international wire transfers.

Wire transfer is a popular method for transferring money. It can be used by

• Indian immigrants sending cross-border remittances back home          
• Customers making payments to Indian businesses     
• Companies importing products from Indian companies      

While it is one of the most popular cross-border money transfer methods, it can also be risky, expensive, and cause processing delays.

The process of transferring money from the USA to India requires the SWIFT network, which connects banks that do not have a direct link to each other.  Here is the step-by-step process:

1. Recipient’s details

The Indian recipient has to share their bank account details as well as the SWIFT code with the sender to initiate the transfer process. The sender then has to provide this information to their bank and request a wire transfer to India.

2. Bank verification

The sender’s bank verifies the information and then debits money from the sender’s account. After this, a secure SWIFT message is sent to the recipient’s bank in India.

3. Funds received into the recipient’s account

When the Indian bank receives the SWIFT message, they take around 1-5 business days to verify the information and then they credit the amount into the recipient’s account.

Money can be wired from the USA to India in various ways, including SWIFT, fintech platforms, bank-to-bank transfers, and wire API. These methods differ in terms of speed, fees, and ease of transfer.

There are various remittance service providers that help in transferring money from the USA to India.      You can select from both banks and fintech transfer platforms such as Xflow, Wise, Remitly, and Western Union.  

International money transfer or cross-border remittance involves inbound and outbound transfers. Inbound transfer is the movement of money into the recipient’s account, while outbound transfer is the movement of money out of the sender’s account. Further differences are highlighted below. 

1. Inbound transfers

• Domestic banks claim to offer ‘free inbound remittance’, which means no charge for receiving funds in India. However, instead of asking for direct fees, they charge hidden fees through FX markups.

• While the recipient does not have to pay a fee, they may still have to wait before they can access the money, as the transfers are completed based on the processing time of the sender’s bank.

• To meet compliance requirements, such as Anti-money Laundering (AML) and Know-Your-Customer (KYC), the recipient's bank may check where the money originated, which might further delay the transfer.

2. Outbound transfers

• The outbound wire transfer fee is paid by the sender. It is usually $20-$50. Additionally, the sender’s bank may also charge SWIFT fees to the recipient, leading to less money being received.

• While the processing time of the sender’s bank determines when the money will settle, the recipient’s bank time and holidays also play a role in processing delays.

• To ensure compliance, senders should follow foreign sanctions and AML regulations and have proper documentation for the origin of the funds.

Choosing the right wire transfer method can have various benefits for your business, such as faster transfers, higher profits, and better FX rates.

1. Speed

Wire transfers are faster than other methods, like sending checks. They tend to take around 1-5 business days, which is important as slow transfers can cause expensive business delays and operational issues.

2. Cost efficiency

Having a cost-efficient wire transfer method helps businesses keep their product prices low and profit margins high. Most wire transfer fees range from $20-$50; however, some institutions, such as HSBC US, do offer fee-free wire transfers. 

3. FX transparency

Transparent forex rates allow businesses to be aware of the fees they need to pay. Bank wire transfers do not have FX transparency, which means businesses have to pay high fees for transfers. Some new wire transfer methods, such as fintech platform transfers, offer low and transparent FX fees, allowing businesses to retain more of their profits.

Wire transfers can be used by freelancers, individuals, businesses, and exporters to send or receive money. Some use cases are mentioned below:

1. Freelancers

Freelancers usually use wire transfers to get paid for their services. The money typically takes around 3-5 business days to reach them. However, they have considerable paperwork and can be expensive, leading to lower profits     .

2. Family remittance

Remittance refers to sending money internationally, either for family support, education, or an emergency. While wire transfers are a popular method for Indian immigrants to send money back to India, currency conversion fees and other added charges can reduce the transferred amount. 

3. Businesses

Businesses use wire transfers for B2B payments as it is a reliable method of sending large amounts of money internationally. However, wire transfers can be risky for businesses, as payments cannot be reversed once sent.

4. Exporters

Exporters depend on SWIFT wire transfers to ensure traceable payments. However, keeping up with region-specific regulations and compliance standards can cause issues. 

5. SaaS revenue collection

SaaS companies often use wire transfers to collect revenue, but wire transfers can fall prey to fraud easily, making them an unsafe method of transferring money. 

Wire transfers are usually used to send large payments to international banks. However, they are more expensive and tend to take longer than newer alternatives, such as UPI global, payment gateways, crypto, and cards.

Wire transfers are generally fast and reliable, but come with notable challenges. These include high FX markups, delayed settlements, intermediary bank fees, and limited transparency     .

1. FX markups

During a USD to INR transfer, banks and intermediaries often add a foreign exchange markup that is higher than the mid-market rate, causing the original amount to be reduced significantly.

2. Delayed settlement

Delays might occur during wire transfers due to time zone differences, bank holidays, compliance checks, or technical issues, which can be harmful for the cash flow.

3. Intermediary bank fees

Every intermediary bank deducts a fee from the original amount, causing the recipient to receive less of what was originally sent. 

4. Limited transparency

Sometimes, recipients are not given clear information regarding the fees and the transfer's status until the funds arrive. This makes it difficult to predict the exact amount of money that will arrive  

When sending money from the USA to India, it’s important to follow some best practices to avoid unnecessary costs or delays. These include comparing fees, understanding FX rates, and using local rails.

1. Compare fees

To ensure you don’t have to pay additional fees or deal with delays, compare fees with alternative fintech platforms, such as Xflow. When it comes to transfer speed comparison, these platforms are better than traditional wire transfer methods and also offer more cost-effective fees and better FX rates.

2. Understand FX rates

Traditional wire transfers usually use a higher foreign exchange rate, leading to a loss of profits during international payments. Fintech platforms usually offer mid-market rates or rates close to them, so you receive more of your money.

3. Use local rails where possible 

Using local rails to transfer money cuts out the expensive intermediary bank fees, which not only reduces costs but also speeds up the transfer process. While both wire transfers and fintech platforms offer this option, fintech platforms tend to be faster and more affordable.

By integrating international wire transfers into your business workflows, your company can process cross-border payments quickly and safely. This also makes it easier to integrate your ERP and accounting systems, access FX and compliance tools, and scale without concern.

1. ERP and accounting integration 

Linking wire transfers to Enterprise Resource Planning or accounting systems eliminates manual errors that might arise and allows for a smoother flow of financial data. This simplifies reconciliations and audit trails.

2. FX rates and compliance

Integrated systems also offer updated foreign exchange rates and compliance tools, which then help businesses eliminate currency conversion risks and meet international compliance regulations easily.

3. Scalability 

For a growing business, increasing transaction volumes are always a concern. Integration of an automated system can help businesses deal with this issue effectively and help them expand globally.

In order to keep up with India’s financial regulations, some key rules must be followed. These include RBI rules, LSR limits, 15CA/15CB, FATCA, and AML/KYC.

1. RBI rules

The Reserve Bank of India (RBI) insists on having the full sender and recipient information in all domestic and international wire transfers. This is to prevent money laundering and terrorism financing. Failure to follow this rule can result in legal trouble.

2. LRS limit

Under the Liberalized Remittance Scheme (LRS) introduced by the RBI, individuals residing in the USA can remit a maximum of USD 250,000 per financial year. It is only allowed for certain activities, such as studies, hospital bills, or investments. However, it is prohibited for activities like purchasing lottery tickets or margin trading.

3. 15CA/15CB

15CA is a declaration form that you need to fill out if you make a foreign remittance outside India. 15CB is a declaration form that needs to be filled out if a foreign remittance of more than ₹5,00,000 is made to a non-resident of India.

4. FATCA

The Foreign Account Tax Compliance Act, or FATCA, requires Indian financial institutions to report U.S. account holders to the IRS.

5. AML/KYC

Anti-money Laundering (AML) helps stop money laundering from occurring, while Know Your Customer (KYC) enables proper customer identification, risk assessment, and monitoring.

The way in which money is transferred from the USA to India is being revolutionized day by day. As technologies continue to advance, we can soon expect real-time USA to India transfers, UPI-powered inbound rails, and AI-powered routing.   

1. Real-time US-India transfers

The National Payment Corporation of India (NPCI) is working with banks in both nations, including the U.S. FedNow system, to develop instant, low-cost payment systems between the two markets. Since the U.S. does not have a national network such as India's UPI, the focus is on small consumer transactions. The large banks of both countries will be important in keeping the flow of payments smooth.

2. UPI-powered inbound rails

Unified Payments Interface, or UPI, is one of India’s current revolutions in the mobile payment system. By using this, users can send money instantly, without the risk of having their sensitive information exposed. India has started introducing UPI to foreign travelers, such as G20 citizens, at a few airports, allowing them to pay like locals.

3. AI-powered routing

The introduction of AI has changed the way payments are routed. Now, with its help, the fastest, safest, and most cost-effective route is shown for each transaction. Not only does this increase success rates and reduce costs, but it also reduces fraud. With AI, features such as predictive analytics and multi-currency optimization might not be that far off into the future.

Xflow is convenient and simple for Indian companies to receive payments from the USA. There are no high fees, no fluctuating exchange rates, and no delayed processing. It enables the company to concentrate on expansion rather than payments. 

Some of Xflow’s features are: 

• Flat 1% transaction fee 
• No hidden FX markup 
• Guaranteed live exchange rates 
• Settlement within one business day 
• Support for large single-invoice payments over $10,000 
• Free automated e-FIRA certificate for compliance