International Money Transfer That Reaches Your Loved Ones Faster

Transferring money to USA from India is an essential service that many Indians benefit from. Whether it's paying for your child’s college tuition or supporting a loved one with their living expenses, knowing how to efficiently navigate international money transfer is important. 

If you want to send money from India to USA quickly and securely, you can use the online remittance services offered by Thomas Cook India.

Moving Funds to the United States: What You Need to Know First?

There can be various reasons in our daily lives where one may need to avail of international money transfer services. In such an instance, where you may need to remit money from India to USA, you need to be familiar with the various transfer methods, legal transfer limits under LRS and some key tips to ensure secure remittance.

Knowing the right channels and procedures lets you prioritise savings and security for your hard-earned money. You also need to be familiar with the exchange rates and how they affect your transfers, the essential documentation, and the charges associated with the service.

Common Financial Needs Driving Transfers to the USA

These are some common needs that drive money transfers from India to the USA:

1. Employment:

Indians seeking a better career often head to the USA for job opportunities. In such cases, the need to send money from India to USA arises to fund the initial expenses related to visa, housing, transportation, and so on.

2. Education:

The USA has several esteemed universities and remains a top destination for many Indian students pursuing higher education. In this case, people remit money from India to USA to cover accommodations, tuition fees, and living expenses.

3. Medical treatment:

Many Indians travel to the USA to get access to specialised medical care. People remit money from India to USA to help cover these treatment, consultation and related costs. 

4. Family maintenance:

For individuals with family members living in the USA, the international money transfer lets them support their loved ones with their rent, utilities, groceries and emergency needs.

5. Foreign stocks:

US stocks are a lucrative investment option for many Indian investors. They often need to transfer money from India to USA to fund their investments.

Different Methods Available to Send Money From India to the USA

To transfer money from India to USA, knowing the available methods and opting for the right one is important. The answer to how to transfer money from India to USA involves these two methods:

1. Wire Transfer

The fastest way to transfer funds from India to USA is via wire transfer. It is an electronic, bank-to-bank transfer, usually via the globally recognised and secure SWIFT network. Traditional banks, as well as online remittance platforms, such as Thomas Cook India, provide the facility of wire transfer.

2. Demand Draft

A foreign currency demand draft (DD) is a financial instrument that Indians can use to remit money from India to USA. The remitter can obtain a physical demand draft in USD at the bank and have it couriered to the beneficiary’s address in the US. 

The beneficiary can then deposit the draft at their bank and receive the funds. Although this is a slower process, it is useful in certain scenarios, such as in cases where wire transfers are not accepted.

How Exchange Rates Influence the Amount Received in USD?

Before you start transferring funds overseas, you must understand how exchange rates influence your transactions. The exchange rate is the value of one country’s currency expressed in another country's currency. For example, as of now, 1 US Dollar is equal to 94.46 Indian Rupee. This means the exchange rate of 1 USD is 94.46 INR.

The exchange rates are not static; they are dynamic. Its constant fluctuation is based on various real-time events and factors, such as interest rates, inflation, trade balance, geopolitical stability, and so on. When you transfer funds from India to USA, the current exchange rate influences the amount received in USD. 

For example, if you send INR to USD at a time when the exchange rate is in favour of INR, the beneficiary will be able to receive more in USD.

Fees, Bank Charges, and Other Deductions to Account For

Apart from exchange rates, there are other factors that affect the total cost to send money to USA. These are the charges you need to know of when you transfer funds from India to USA:

How to Transfer Money from India to the USA: Step-by-Step Process

It is a straightforward process to send money to USA via Thomas Cook. Here’s a step-by-step guide on how to send money to USA from India:

1. Select currency & amount

Choose the currency, which, in this case, is the USD. Then, enter the total amount you want to remit and get an instant quote.

2. Provide the remitter & beneficiary’s information

Provide the details of the sender and the recipient, and the necessary documentation.

3. Complete online payment

Select the preferred payment amount and mode. Then, complete the payment online via credit card, debit card, UPI or net banking.

4. Get confirmation

After the successful payment, you will get an email confirmation of your money transfer order along with the reference ID.

Documents Required for Sending Money to the USA

The documents necessary for transferring money to USA from India are listed in the chart below:

How Long Transfers to the USA Typically Take?

The total transfer time for transferring money to USA from India depends on the transfer method. Here is a general timeline:

1. Wire transfers (via bank): 

International wire transfer via traditional banks can take up to 1-5 business days.

2. Online SWIFT wire transfers: 

SWIFT-based wire transfers via online remittance platforms, such as Thomas Cook India, are usually instant. The general timeline for funds to reflect in the beneficiary account is within 24 to 48 hours.

3. Demand draft: 

Sending money via a demand draft is a slower process, usually taking 3-5 days. In some cases, it can even take a few weeks due to delays.

Why Choose Thomas Cook to Send Money from India to USA?

If you want to send money from India to USA, consider Thomas Cook. Here’s why you should consider us:

1. RBI authorised platform

Thomas Cook is an RBI-authorised forex dealer, offering fast and secure overseas money transfers. We ensure each transaction complies with the strict foreign remittance rules and guidelines.

2. Rate lock-in

Thomas Cook’s rate lock-in feature protects customers from constant market fluctuations. You can lock in a favourable rate for up to 48 hours by only paying 2% of the booking amount.

3. 24/7 customer support

Thomas Cook’s dedicated customer support mechanism handles each customer query with utmost efficiency. Our experts can guide you through the entire overseas money transfer process.

4. Accessible payment options

Thomas Cook is the best way to send money from India to USA with accessible payment methods. Choose the currency and amount, provide the essential details and book your order by paying online via card, UPI, or netbanking.

Online Transfers Compared to Traditional Bank Remittances

Now that you are familiar with how to send money from India to USA, you need to understand the differences between traditional bank transfers and online transfers:

Tax Rules and TCS on Sending Money Abroad

Under the RBI’s Liberalised Remittance Scheme (LRS), Indians can individually remit up to $250,000 in a financial year. Here’s how Tax Collected at Source (TCS) impacts the outward remittances:

Important Checks Before Initiating a Money Transfer to the USA

Before you transfer money from India to USA, here are some things you must consider:

1.Transfer cost:

Make sure to account for the total cost of the money transfer. This includes the base cost and associated charges, such as processing fees, intermediary and recipient bank charges, and applicable TCS and GST.

2. Exchange rates:

Exchange rates are fluctuating every second. Do your research to identify the best rate and time for the money exchange. Use the rate lock-in feature to freeze desired rates.

3. Security:

Only utilise overseas money transfer services from RBI-authorised providers, such as banks, and online or offline platforms.

4. Order details:

Verify that all details, such as remitter and beneficiary information and documentation, are accurate. Any omissions or discrepancies can delay transfers.

Choosing the Right Transfer Method Based on Your Need

Now that you know how to send money from India to USA, you need to choose the right method. For instance, if you have an urgent money transfer need, you should consider a SWIFT-based wire transfer via an authorised forex provider. If you have any non-emergency transfer needs, such as regular maintenance payments, you may rely on traditional bank transfers or demand drafts.

Overall, online wire transfers via authorised platforms, like Thomas Cook, remain the best way to send money from India to USA. You get competitive pricing, real-time exchange rates, digital convenience, and the promise of fast and secure transfers with each transaction.

Frequently Asked Questions

What is the cheapest way to send money to the USA? 

The cheapest way to send money to the USA is via a wire transfer via an online RBI-authorised forex provider. They offer competitive pricing with the best exchange rates and no hidden fees.

Will I be taxed if I transfer money from India to the USA? 

For outward foreign remittance, your transfer is subject to taxes. This includes Tax Collected at Source (TCS), if the transfer amount and purpose match the criteria, and the Goods & Services Tax (GST).

Is it legal to transfer money from India to the USA?

Yes, it is legal to transfer money from India to USA. However, one must only use RBI-authorised services to transfer money, and the money transfer must abide by the Liberalised Remittance Scheme (LRS) rules.

Is a PAN Card necessary for sending money from India to the USA?

Yes. The remitter’s PAN Card is one of the many documents required for transferring money to USA from India. Other documents include a signed A2 form, a valid government ID, the beneficiary’s SWIFT code, etc.

How much money can I send from India to the USA?

In India, residents can individually remit up to $250,000 in a financial year under the RBI’s Liberalised Remittance Scheme (LRS). This is only for authorised purposes, such as education, medical treatment, travel, investments, gifts, and family maintenance.