USD INR ₹ 84.00
GBP INR ₹ 102.80
CAD INR ₹ 60.65

The Latest Update On The U.S. To India Remittance Corridor

Updated on May 24, 2021 12:00 am

Remittances are money sent by migrant workers back to their home countries. As a matter of fact, international remittances are the largest source of external financial inflows in several developing countries.

These remittances often surpass foreign direct investments, portfolio investment, and official development assistance, especially in low and middle-income countries.

Out of the total international transactions, remittance payments account for less than 10% but they are imperative to millions of households around the globe who depend on remittances for sustenance, family maintenance, education, health, etc.

Despite the previously projected decline, the global remittance flows proved more resilient than expected during the COVID-19 pandemic.

According to the latest World Bank data, global remittances are expected to total $702 billion in 2020, only 2.4% down from $719 billion in 2019. $540 billion of the total have expected to have gone into low and middle-income countries, 1.6% down from $548 billion in 2019.

Importance Of Remittances To India

The Indian diaspora is one of the largest overseas communities in the world comprising skilled, semi-skilled, and unskilled Indian migrants. India has been the world's highest recipient of remittances over the last decade, with the U.S. being the largest sender.

India received $69 billion in remittances in 2017, $79 billion in 2018, and $83.3 billion in 2019 as per the World Bank.

Despite the COVID-19 pandemic devastating the world economy in 2020, India received over $83 billion in remittances in 2020. Only a 0.2% drop from 2019 instead of a 23% decline as previously projected by the World Bank as a consequence of the pandemic-induced global recession.

The flow of inward remittances has positively impacted the Indian economy: from financing trade deficits to alleviating poverty, enhancing saving, investment, and human capital formation.

The U.S. To India Remittance Corridor

A remittance corridor is a flow of funds from one country to the other. In the global remittance industry, countries like India, China, Mexico, the Philippines are the top recipients of remittances. Remittance also makes up a huge percentage of the GDP in their respective countries.

On the other hand, countries like the USA, United Arad Emirates, Saudi Arabia, UK, Canada, Germany are the top remittance senders.

The U.S. to India is a popular money transfer corridor. In 2019, a total of $12.7 billion was remitted from the U.S. to India.

Cost Of Sending Remittances To India

The cost of cross-border money transfer matters tremendously in international remittances. It influences the size of remittances.

According to the latest report of the World Bank, the average cost of sending $200 to India in Q3 2019 was 5.38%, the second-lowest among G20 countries. The global average in Q3 2019 was 6.84%.

The cost of remittance varies across corridors based on the exchange rate margins, fixed fees, modes of payments, transfer method, the extent of market competition, destination country, participants involved in the transfer process, and regulations in both the sender and recipient countries, etc.

The global target under Sustainable Development Goal (SDG) stands at 3%.

The Dominant Players In The U.S. To India Remittance Corridor


Banks are one of the dominant players in this corridor. People are familiar with bank transfers, even when it can be expensive and time-consuming.

Cash transfer, money orders, demand drafts, and bank cheque transfers used to be the conventional way to remit money to India.

However, thanks to the availability of online remittance services offered by major Indian banks, most remitters preferred sending money online from their computer or mobile devices through the internet and mobile banking.

ICICI's Money2India is an online remittance service that allows money transfer from a U.S. bank account to a bank account in over 200 banks in India. They offer competitive exchange rates and affordable transfer fees. The service is accessible through the ICICI's website or the mobile app.

SBI, India's largest bank offers inward remittance to Indian bank accounts through SBI Express Remit, wire transfers (SWIFT), demand drafts, personal cheques, and Western Union transfers.

In current times, mobile applications are fast emerging as the preferred medium of transfer because of convenience and speed.

The integration with India's Unified Payments Interface (UPI), which enables instant money transfer to a bank account will also boost India's remittance payments and delivery time.

Money Transfer Companies

The U.S. to India remittance corridor is a dynamic one with several money transfer companies offering remittance services.

From industry incumbents to new emerging players, there are many options. This makes it easy to compare the top money transfer service providers and choose the best for your requirements.

Here are some of the top service providers to send money online from the U.S. to India

Western Union

Western Union is the oldest money transfer provider in the world. You can send money online, use their app or opt for a cash transfer and pay directly from your bank account, debit, or credit card or pay cash at an agent location.

The money can be transferred to nearly 200 banks in India. There are in total 60,000 agent locations in India spanning over 7,000 cities, towns, and villages.


Xoom is a PayPal-owned online remittance service provider. With Xoom, you can send money to 100,211 partner locations in India for cash pickup, or make a bank deposit to banks such as SBI, ICICI, HDFC Bank, PNB, Axis Bank, and many others.

You can also send money to India with UPI through Xoom. This payment method enables you to send money to 66 banks across India in an instant either from your Paypal account or Xoom account.


Wise, a London-based online-only is one of the cheapest options to send money to India. There are no hidden charges and it gives you the mid-market exchange rate.

You can send money to India either from their website or app.

The delivery time may vary based on the payment method you use (bank transfer, credit or debit card, SWIFT transfer)


WorldRemit is another leading digital money transfer provider that lets you send money to all states and Union territories in India from the U.S.

It is one of the fastest and offers different delivery options including bank transfer, cash pickup, airtime top-up.

Send Money to India from the U.S. using Google Pay


Google Pay users in the U.S. can send money to Gpay users in India. Even better is that Western Union and Wise are integrated into Google Pay. 

The users can either choose Wise or Western Union when sending the money with the Google Pay app. They will also be informed of the amount of money the recipients will get and the time to receive the money.

In the future, Google will expand cross-border remittances worldwide. India and Singapore have been picked first based on their importance in the remittance world.

It currently allows U.S. users to send money to users in India and Singapore and not the other way around.

This service is only available for person-to-person payments. This means businesses on GPay in the U.S. will not be able to send money to individuals or businesses in India.

Fortunately, there is one service that provides payment solutions to businesses across the world including India. The payment platform is called


Fairexpay is an India-based global aggregator platform for cross-border payments.

The platform hosts several regulated payment providers to facilitate real-time foreign exchange payments for businesses across the world quickly and securely with Fx pricing clarity.

The platform has a dashboard for Management teams and support Vendors, Overseas payroll, and Intercompany payments, with 30+ multi-currency wallets that can also be used for receiving payments from customers.

Fairexpay is partnered with Roxe, a next-generation global payment network. The Roxe network use blockchain technology to provide fast, cost-effective, and highly reliable clearing and cross-border settlement of payments and remittances, saving time and money.

With the partnership, Fairexpay will become a Roxe payment node to provide remittance services to beneficiaries in India.

The expansion of Roxe to India is crucial for the U.S. to India remittance as this paves the way for global payments from a traditional account model to a new blockchain-powered paradigm.

Ultimately, the remittances depend on various factors including the host countries' macroeconomic conditions, fiscal policy, immigration laws, the stock of migrants, currency exchange rates, political relationship between the two countries, etc.

Rate article:
Money Transfer FAQ's
Related News
mexican peso
Mexico Achieves Record-Breaking Remittances of $5.7 Billion in May 2023

According to recent data released by the central bank, Mexico received an impressive sum of nearly $5.7 billion in remittances during the month of May, setting a new monthly record. However, analysts caution that the strength of the peso against the dollar may have mitigated this achievement.Since the majority of remittances to Mexico originate from the United States, the value is recorded in dollars. Goldman Sachs analyst Alberto Ramos explains that "a strong peso hurts remittances," referring to the fact that the appreciation of the Mexican currency has an adverse effect on the funds received when converted from dollars to pesos.Interestingly, the peso has emerged as one of the top-performing currencies this year, appreciating over 13% against the U.S. dollar between May 2022 and May of this year.Due to the peso's appreciation, when measured in local currency, remittances actually experienced a 2.2% decline compared to the previous year, as stated by Ramos.Mexican President Andres Manuel Lopez Obrador has consistently highlighted the positive impact of remittances on the country's economy. The funds, primarily originating from the United States, have played a significant role in Mexico's economic growth.In 2022, Mexico recorded a record high of $58.5 billion in remittances from abroad, making it the second-largest recipient country, trailing only behind India.Despite the challenges posed by the "super peso," the dollar value of remittances sent in May increased by nearly 11% compared to the previous year.The latest data for May reveals a substantial jump of almost 14% compared to the previous month, resulting in a total inflow of funds reaching $24.67 billion this year.Notably, this amount surpasses the combined revenue generated by oil and agricultural exports during the same period, as noted by analysts at Mexican brokerage Monex.Analysts at Monex and BBVA attribute part of the May surge to the celebration of Mother's Day, suggesting that around 10% of the increased transactions can be attributed to this commemoration.The number of transactions in May experienced a 7% year-on-year increase, reaching a total of 14.56 million. Furthermore, the average amount per transaction rose by 3% to $391.Goldman Sachs' Ramos emphasizes that the strength of remittances reflects the robust U.S. labor market and visible wage growth, particularly in sectors where Mexican citizens are prominently represented.To compare today's best rates when remitting money to Mexico, use CompareRemit's easy-to-use USD to MXN exchange rate comparison tool!

mexican dad with children sending money online using computer
CompareRemit Launches NEW Spanish Language Site

CompareRemit is thrilled to announce the launch of our NEW Spanish language website! Spanish speakers can now effortlessly navigate through the CompareRemit website to compare exchange rates, fees, and transfer time when looking to send money overseas using one of our trusted partners. Fully understand the offerings of online remittance companies and compare their services with ease while browsing our Spanish-translated site. In addition to making comparisons easier to navigate in Spanish, we have also launched a Spanish blog dedicated to money transfer guides and topics that will help Spanish speakers better understand how to send money online, how to use money transfer apps, reviews of the best remittance companies, and so much more. Plus, we don’t use Google translate for our Spanish-language supported website; our site is translated by native Spanish speakers to ensure that you are receiving accurate and helpful information. How to Navigate the New CompareRemit Spanish Language SiteStarting on the homepage, check out the current exchange rates for top remittance countries, including USD to MXN. These are the best available market exchange rates offered for the moment. You can also manually enter in how much money you are looking to send and to which country, which will redirect you to a new page detailing the company choices you have. You can compare exchange rates, transfer fees, transfer time, and coupons available from our trusted partners. If you are looking for more information on the best ways to send money overseas or tips and tricks when it comes to exchanging or transferring money, be sure to navigate to our blog section. Here, you’ll find detailed articles related to remittance to help make your money transfers easy and seamless. Find detailed money transfer guides, the latest news, and more! To see what offers our current partners have, check out our coupons page. Here, you’ll find the latest deals that our trusted remittance partners are offering. Typically, you’ll be able to get a special exchange rate for your first transfer, or money off your first transaction. Don’t miss these deals, because they don’t last long and help you save even more money when sending cash overseas. Lastly, if you have any questions or concerns while scrolling our site, head to our contact us page where you can send us a message. We will get back to you as soon as possible! We hope that our new Spanish website helps Spanish-speaking visitors to easily navigate the CompareRemit website. Use our website before sending any money overseas to get the best exchange rate, lowest transfer fee, and fastest turnaround time. Compare USD to MXN today!

US dollar chart rising
How the US Dollar is Getting Stronger Against the Indian Rupee

The Indian Rupee has closed at a 20-week low against the US dollar. Paired with the unexpected outcome of the US presidential election this past week, the main reasons for dragging the rupee down can be accredited to the strike on black money via demonetization of high-value currency notes and weak industrial output. The US currency, in turn, has strengthened based on speculations that the policies of the US President-elect Donald Trump would be inflationary and lead to a rise in the interest rates, thus impacting foreign money flow to emerging countries like India.Foreign investors withdrew over Rs. 2,350 crore from the stock markets as the US-backed assets are looking more attractive and as a result, the economy is expected to improve in the coming quarters.According to India ratings, the sudden decline in money supply and a simultaneous increase in bank deposits - due to withdrawal of 500 and 1000 rupee notes - will adversely impact consumption demand in the economy. This, coupled with the depreciation of real estate, construction and informal sectors, will further weaken the rupee in the upcoming months. It is very much possible in the upcoming months, as well as even forecasted by many agencies, that US Dollars will become stronger against Indian Rupees. All this means is that the spending power of the NRIs will increase, leading to a rise in the remittance flow to India.Compare. Save. Send Money Home Wisely.TODAY'S BEST RATE USD to INRAdditional ReadingHow will India's Currency Ban Affect NRIs in the USA?How India's currency ban of Rs. 500 & Rs.1000 will affect NRIs?How much Indian Rupees can one carry to India?

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App