How much money can NRIs send to India?

RBI's Liberalised Remittance Scheme (LRS) allows $250,000 per financial year. Most services have per-transaction limits.

Do I need to report money sent to India on US taxes?

Gifts over $100,000 to foreign persons require Form 3520. Transfers to your own NRE/NRO accounts are not gifts but should be documented.

NRE vs NRO account — which should I use?

NRE for foreign income (fully repatriable, tax-free in India). NRO for Indian income like rent (limited repatriation, taxed in India).

Best Ways to Send Money to India

Q: What is the cheapest way to send money to India?

Wise (TransferWise) offers mid-market rates with flat fees of $1-5. For small amounts, Remitly often has zero-fee promotions.

1 USD = ₹92.67

Live rate · Compare fees, speed & limits

Service Comparison

Service	Fee	Speed	Exchange Rate	Best For
Wise (TransferWise)	$1-5 flat	1-2 days	Mid-market rate	Best overall rate
Remitly	$0-4	Minutes to 3 days	Slight markup	Fast small transfers
Xoom (PayPal)	$0-5	Minutes to 3 days	1-2% markup	PayPal users
Western Union	$5-10	Minutes to 5 days	2-4% markup	Cash pickup in India
Bank Wire (SWIFT)	$25-45	3-5 days	1-3% markup	Large transfers

How Much Will They Receive?

Live rate: ₹92.67/USD

You Send	They Get (Best Rate)	They Get (Avg Bank)
$500	₹46,335	₹45,408
$1,000	₹92,670	₹90,817
$2,000	₹185,340	₹181,633
$5,000	₹463,350	₹454,083
$10,000	₹926,700	₹908,166

Bank estimate assumes 2% markup. Actual rates vary.

NRI Remittance Guide

Choosing the right service: For amounts under $1,000, Remitly and Xoom offer fast delivery with low fees. For larger transfers ($5,000+), Wise consistently provides the best exchange rate with transparent pricing.

NRE vs NRO accounts: Send to your NRE account if the money is from foreign earnings — it's fully repatriable and interest is tax-free in India. Use NRO for Indian income like rental payments or pension.

Tax considerations: Transfers to your own Indian accounts are not taxable events. However, gifts exceeding $100,000 to family in India require filing IRS Form 3520. Always keep transfer receipts for FBAR reporting if your foreign accounts exceed $10,000 at any point.

RBI LRS limit: Under the Liberalised Remittance Scheme, Indian residents can send up to $250,000/year abroad. This applies to money flowing FROM India — there's no limit on inward remittances.

Sources: RBI, IRS, Wise, Remitly

FAQ

What is the cheapest way to send money to India?

Wise offers mid-market rates with $1-5 flat fees. Remitly often has zero-fee promotions for new users. Always compare total cost (fee + exchange rate markup).

NRE vs NRO — which account for remittances?

NRE for foreign income (fully repatriable, tax-free interest in India). NRO for Indian income like rent (limited repatriation, taxed in India).

Do I need to report money sent to India?

Transfers to your own accounts aren't gifts. But if your foreign accounts exceed $10,000 total, file FBAR (FinCEN Form 114). Gifts over $100,000 require Form 3520.

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Last updated: April 5, 2026