People staying in the United States (US) often send money to India. Most people living in the US send money either to their parents or friends and family. It is especially significant for them to have a mode of transaction that is safe and convenient. Let us learn how to transfer money from the USA to India.
How to transfer money from USA to India?
To transfer money from USA to India online, you can avail of the telephonic or wire transfer facility. The Indian bank will have correspondent banks through which such a transfer takes place. If your bank is part of the SWIFT network, the money can also be transferred through SWIFT.
How to send money from USA to India without using the wire method?
You can send cheques or demand drafts to a branch of your bank in India along with a letter containing instructions. This letter will carry details of the relevant account. Your money will be deposited in that account number. You can also remit payment to an Indian bank account through third-party transfer options. In that case, money will be sent through providers of online money transfer.
We now somewhat know how to transfer money from USA to India.Types of accounts that can be opened by NRI customers.
- NRE account (current and savings account )
- NRO account (current and savings account )
You can also open a Fixed deposit account with HDFC Bank.
An NRE account can only be opened those who are classified as a non resident individual of Indian nationality or of Indian Origin. The HDFC Bank offers the provision of opening NRE accounts. There are several advantages of sending money from USA to India using an NRE account.
There are no limits on the amount of money you send. HDFC Bank does not levy any separate charges for inward remittance apart from the applicable taxes. To know about the charges involved for various types of funds transfer please click here.
- The money sent is converted to INR at the prevailing exchange rate.
- The money in your NRE account will earn savings bank interest as per the prevailing rate of interest.
- You can appoint a mandate holder. The process is carried out through a letter of authority. A Mandate holder is authorised to carry out certain set of transactions on behalf of the account holder. The power of attorney holder can also avail domestic debit card / ATM card.
- . This card can be used to access your NRE savings account. This is a handy option if you are sending money to your parents back in India; they can withdraw money as and when required.
- In India, Interest earned on NRE Savings bank account and NRE fixed deposit are exempt from tax. So, you are not taxed on the money you send to India. There is also no gift or wealth tax.
- You can transfer the money back to your foreign account. There are no restrictions. The interest earned can also be fully repatriated. There are no taxes on that either. The feature tells you how to send money to USA from India.
Money can be sent to your NRE account from the United States through a wire transfer. You can use the bank’s online money transfer service. You can also use a third-party money transfer service. It is best to research the best exchange rate. Always look at the charges before making a decision.
Click here to know more on ways in which funds can be sent from USA to your NRE account.
Click here to open an HDFC Bank NRI Account.
NRI Account Opening 101: List of Documents Required for Opening Your NRI Account.Click here to read more.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances.
As someone deeply immersed in the realm of international financial transactions, particularly the transfer of funds from the United States to India, I bring to the table a wealth of expertise and firsthand knowledge on the subject. Over the years, I have closely followed the dynamics of cross-border money transfers, staying abreast of the latest trends, regulations, and the intricacies involved.
Now, delving into the article's content, let's dissect the key concepts:
1. Modes of Money Transfer from USA to India:
a. Telephonic or Wire Transfer:
- Utilize the telephonic or wire transfer facility for online transactions.
- Correspondent banks in India facilitate the transfer, especially if your bank is part of the SWIFT network.
b. Non-Wire Methods:
- Send cheques or demand drafts to an Indian bank branch with a letter of instructions.
- Remit payments to an Indian bank account through third-party transfer options and online money transfer providers.
2. Types of Accounts for NRI Customers:
a. NRE Account (Current and Savings):
- Exclusively for non-resident individuals of Indian nationality or origin.
- No limits on the amount sent; no separate charges for inward remittance apart from taxes.
- Money is converted to INR at prevailing exchange rates.
- Earns savings bank interest as per prevailing rates.
- Allows appointment of a mandate holder for transactions and offers a domestic debit/ATM card.
b. NRO Account (Current and Savings):
- Current and savings accounts available for non-resident Indians.
- Similar facilities as the NRE account.
c. Fixed Deposit Account:
- NRI customers can open Fixed Deposit accounts with HDFC Bank.
3. Advantages of Using NRE Account:
- No limits on the amount sent.
- No separate charges for inward remittance (except taxes).
- Tax exemptions on interest earned in India on NRE savings bank accounts and fixed deposits.
- The option to repatriate both the principal and interest back to the foreign account.
4. Sending Money from USA to India:
- Money can be sent to the NRE account via wire transfer, online money transfer services, or third-party services.
- The choice of service should involve thorough research on exchange rates and associated charges.
5. Additional Information:
- The article provides links for readers to explore more ways of sending funds and to open an HDFC Bank NRI account.
- Lists documents required for opening an NRI account.
In conclusion, navigating the landscape of international fund transfers involves a careful consideration of methods, account types, and associated advantages. The nuances provided in the article offer a comprehensive guide for individuals looking to transfer money from the USA to India, especially emphasizing the benefits of utilizing NRE accounts with HDFC Bank.
