Sending money overseas has become easier than ever with plenty of convenient options thanks to technology in the international money transfer market.Â
You may find a lot more money transfer providers for remitting money from Australia to India. However, there are limited options when you want to transfer money from India to Australia.
For many people, the first thing that comes to mind is using their regular bank account to make an international transaction. Banks can be a trusted, familiar and convenient option. However, banks generally have poor exchange rates and can charge hefty transfer fees. You end up spending more money than you intended on marked-up foreign exchange rates and hidden charges.Â
There are money transfer companies specialized in sending money from India to Australia that provides better exchange rates and lower transaction fees.Â
The best way would be to use the cheapest option that can save you money on your transfer but you also need to take into account the speed of the transfer, or the pay-in or pay-out method, and other criteria like reliable customer service, transfer limit, etc.
Please note that under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI), a resident Indian can transfer up to USD 250,000 (its equivalent in Australian dollars) per financial year to friends and family abroad. This amount is set as the current limit and it is subject to changes in the future.
People need to send money from India to Australia for a variety of reasons. It could be to fund University fees, for starting a new business, gifts to a friend, to finance medical treatment or maintenance of close relatives, and so on.
Here are the ways you can send money from India to Australia.
The majority of Indian banks and RBI-approved authorized dealers have partnered with hundreds of overseas banks including in Australia to transfer funds internationally through the SWIFT (Society for Worldwide Interbank Financial Telecommunications) network.Â
Wire transfer is the electronic transfer of funds across a network of banks and transfer agencies around the globe. You can send from your Indian bank account to an overseas bank account. Both residents and non-residents can do wire transfers from India.
Some major banks in India that provide outward remittance service are State Bank of India, ICICI Bank, Standard Chartered, Yes Bank, CitiBank, etc.
If you are a resident Indian, you need to fill up and submit Form A2 to the bank along with Government Issue ID proof or copies of your passport, Visa, pan card (if necessary) to make a transfer. Each bank has its own version of the A2 Form. You will have to get the correct version from your bank. After your bank verifies the documents, the wire transfer is initiated and the fund will be transferred to the beneficiary account in 2-5 business days.
If you a Non-resident Indian (NRI), you can opt to transfer funds directly to an overseas bank account from your FCNR/NRE account without going through the formalities to remit money abroad.
Read more on new tax rules on foreign remittance.
Services like BookMyForex or ExTravelmoney can be cheaper and quicker than bank wire transfers. These services compare the exchange rates across different banks and give you the most competitive exchange rate. You can send Australian Dollars (AUD) through wire transfer at zero commission. You can also opt for a foreign currency demand draft.Â
To send money from India to Australia, go to ExTravelmoney's website and enter the transfer amount, purpose of remittance, and location. See rates quoted by the nearest exchange houses and banks. Book your transfer online once you choose the best rate after comparing the quotes.
You will have to submit the KYC documents for verification. Once done, transfer the fund to the chosen exchange house or the bank's account as NEFT/RTGS. Your beneficiary should get the fund in 48 hours or less.Â
You can freeze the favorable rate for sending money and it will stay valid for the entire day even if the rates fluctuate dramatically even in a day.Â
Similarly, you can book your money transfer order online on BookMyForex's website. Check whether you are eligible for foreign remittance. Provide your details along with your recipient's information and your purpose of remittance.
You may need to give documents such as a pan card, passport copies, address proof, and other records (if required). You can upload the documents on the website itself or opt for document pickup from your home or do it offline at the bank.Â Â
You can then transfer your money to one of the partnered banks of BookMyForex. The booked exchange rate will be shown on your device's screen.Â
To initiate the transfer, a digital Form A2 will be provided that needs to signed by you. After signing on the web portal itself, the transfer is processed and the money is received in 12-48 hours. You will receive a SWIFT acknowledgment.Â
Banks are not the cheapest option to make international money transfers. A mark-up exchange rate, high as 5% is charged for sending money abroad.Â
Go for online money transfer companies to get the most competitive conversion rates along with faster transfer, lowest transaction fee but just as safe and secure.
There are 3 best options to send money online hassle-free from India to Australia.
InstaReM is a leading digital cross-border money transfer company founded in 2014 in Singapore. Its offices are also present in Australia, Malaysia, Hong Kong, India, the USA, Canada, and the EU.
It facilitates low-cost international money transfers for consumers, small and medium enterprises, and financial institutions.
It is up to 8x cheaper than what banks charge. The rates are sourced from Reuters. Currently, INR/AUD exchange rate is at 1 INR=0.0176 which is a competitive rate.Â
Transactions can be done at a minimal fee and there are no hidden charges. You can see the exact amount that your recipient will get before sending the money. Also, track your transfers online using your transaction number and your registered mobile number.
Earn Loyalty points upon joining InstaReM and each time you make a transfer. You can redeem them against your transactions.Â
Wise (formerly TransferWise) is an authorized electronic money institution based in London. It was launched in 2011 by Estonians Kristo Kaarmann and Taavet Hinrikus with the mission to make international money transfer cheap, fair, easy, and fast.
The company changed its name to Wise in February 2021 to keep up with its services that have expanded beyond international money transfers. With a Wise bank account, you can hold balances in more than 55 currencies and use the Wise debit card for your expenses abroad conveniently.
To send money to Australia using Wise, you pay a fixed fee plus 1.78% of the amount converted. The total cost of the transfer is always shown upfront. The exchange rate provided is the inter-bank rate. It is 8x cheaper than banks and there are no hidden fees.Â
Sign up with Wise online or in its app for free. Tap in the transfer amount and your recipient's bank details. You might be asked to provide your ID for transfers if necessary. This is only for safety reasons.
Make a local payment to Wise using your bank account or your debit or credit card. Bank transfers are the cheapest for funding your overseas transfers with Wise. They are slower than debit or credit cards but it saves you money.Â
Your recipient will be notified of the transfer and that's it. You can track the transfer status online.
Skrill launched in 2001 under its former name Moneybookers is a digital wallet provider that also offers remittance service through Skrill Money Transfer. Headquartered in London, it now operates in more than 120 countries with the digital wallet offered in 40 currencies. You can also buy and sell cryptocurrency.
With Skrill, you can send money for free from India to an overseas bank account. The exchange rates offered are what you see on Google or XE.com. So there are no hidden mark-ups.
You can fund your transfer using your bank account or debit/credit card at no extra cost.Â
To send money from India to Australia, register for a Skrill account on its website or download the Skrill mobile app.Â
Enter your personal information (name, date of birth, email address, password, contact number) and your recipient details (name, address, bank details). Select the country of destination and the desired currency (AUD, in this case). Once you have entered the amount and selected the payment method, confirm the order, pay for it and it is done. The money should arrive in the recipient's bank account in 48 hours or even less.Â
Ultimately, knowing how to compare your options is the best way when transferring money overseas. Compare rates for AUD/INR across a range of providers. Choosing the best rate can result in saving a substantial amount of money.Â Â
Look out for companies that waived fees for large transactions. It may be more cost-effective to do large infrequent transactions instead of frequent small ones. With many options, you can choose the one that best suits your requirements.