How to Transfer Money from India to UK?

There are several reasons why you might need to send money from India to the United Kingdom. Because you intend to live in the UK, you may need to transfer money there. Or you may have family in the UK, such as children who are studying, whom you would like to support with educational or medical expenses.

The issue is that transferring money can feel risky, especially when done online. Concerns about both safety and cost can deter you from transferring money abroad. There are also rules specific to India established by the government and the Reserve Bank of India that govern how much money you can send.

With all of this in mind, it can be reassuring to know that transferring money from India to the UK is not only possible, but also quick, easy, and hassle-free, provided you understand all of the different rules that must be followed. transfer money from India to the United KingdomYou can learn everything you need to know about how to right here.

What is International Money Transfer and How to do it?

The Reserve Bank of India (RBI) allows Indian citizens to send money from India via an outward remittance process that is governed by various foreign regulations. 

  • Banks, post offices, and digital payment platforms can all be used to send money abroad.
  • The RBI permits up to $250,000 to be sent from India by one person or entity per financial year for things like business trips, vacations, gifts, donations, employment and education abroad, as well as medical and other necessary costs of relatives who live abroad.
  • Permanent Account Number (PAN) card copy, original fee slip/receipt/bill where necessary, proof of adequate funds, Form A2, and other documents may be required depending on the bank and platform you use.

Also Read: Career in Finance: Cracking the Code to Success

Important Things to Consider While Making International Money Transfer

There are a few factors to take into account when sending money abroad in order to maximise your investment.

  • Transfer Speed: You should allow 48-72 hours for money sent from India via appropriate online channels, and a few days for cheques and demand draughts.
  • Foreign Exchange Rates are the values of one currency in relation to another. When sending a large sum of money, a small difference in the exchange rate can make a big difference.
  • Overhead Charges: When transferring money, you will almost always be charged a transfer fee, which can be fixed or a percentage of the amount transferred, as well as foreign conversion tax and, in some cases, service tax for each entity involved in the transfer process.
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Steps to Transfer Money from India to the UK

Sending money from India to the United Kingdom takes only four steps. Following are the steps you need to follow:

  1. Enter the remittance amount and your location. Rates from nearby exchange houses and banks will appear on your screen immediately.
  2. Compare the quotes, pick the best one, and book your wire transfer online.
  3. Transfer the funds to the preferred exchange house via NEFT/RTGS and then submit the KYC documents.
  4. Your money transfer order will be processed as soon as the funds are available. The beneficiary will be credited within 48 business hours.

Methods to Transfer Money from India to the UK

Banks primarily allow you to send foreign currency in two ways. These are:

Wire Transfer/Telegraphic Transfer (TT)

Wire Transfer (TT Transfer/SWIFT Transfer) is a type of electronic fund transfer (via SWIFT) that allows you to transfer money from an Indian bank account to an overseas bank account. Indian banks and RBI-approved Authorized Dealers have agreements in place with over 400+ major banks worldwide to receive SWIFT messages, ensuring safe and secure outward remittances from India. Account holders of any bank in India (both residents and non-residents) can wire money from the country.

Foreign Currency Demand Draft (DD)

A Foreign Currency Demand Draft is another option for international money transfers such as educational payments, medical fees, VISA fees, or relocating to another country. Demand drafts are a safe way to send money internationally because they are made ‘favouring’ the recipient. If a DD is lost or stolen, it can be reissued.

How Much Money Can You Transfer?

The Reserve Bank of India regulates the amount of money that can be transferred to an overseas account. Until 2013, it was illegal to send more than USD 75,000 (INR 61.12 Lakh) from India to foreign accounts. In 2014, the RBI raised the limit from USD 75,000 (INR 61.12 Lakh)  to USD 1,25,000 (INR 1.01 Cr). The RBI changed the limit and increased the maximum amount you can transfer to overseas accounts again in 2015. In a year, you can now transfer USD 2,50,000 (INR 2.03 Cr) to any overseas bank account.

FAQs

Can I transfer money from my Indian account to a UK account?

The most common method of transferring money from India to the United Kingdom is a wire transfer. This procedure is simple and ensures the security of your transaction. The Society for Worldwide Interbank Financial Telecommunication is a member of the IndusInd Bank (SWIFT).

How much money can I transfer from India to UK tax-free?

Under the Reserve Bank of India’s Liberalised Remittances scheme, you can send up to $250,000 abroad or the British pound equivalent each year. However, any amount sent in excess of Rs 7 lakh will be subject to a 5% tax-collected-at-source (TCS).

Can I send money from India to the UK using Google pay?

No, you cannot use Google Pay to send money from India to the United Kingdom. You can send money to family and friends in India using Google Pay. 

This was all about how to Transfer money from India to the UK. If you wish to know more about international transfer and education loans, check out Fly Finance. If you wish to study abroad in the UK, USA, or anywhere in the world, connect with our experts at 1800 57 2000 and book your 30-minute free counselling session.

About Vidisha Dewan

Graduated with English as a major, I’m a writing enthusiast. Writing helps me blend my passion and profession to achieve creative satisfaction. Here, you'll find content related to finance: bank accounts, money transfers, loans and more. Still learning about how to handle my own finances better, I keep sharing all the relevant information to help my readers as well. I try to keep my work surroundings creative and fun, with space for constructive feedback.

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