How to Transfer Money India to US or Abroad – Wire Transfer

I have purchased a few gadgets through a friend who is a student in the United States and the total cost of this is at around 600$. Now since he has already shipped me the purchase through USPS, i need to send him the payment but it seems like he is only accepting Wire Transfer payment and is not interested in taking the funds transfer via Paypal. I need to know how can i make a Outward Remittance and how is it possible to send the funds directly into his bank Account. Can i post him a Check in Indian Rupees which is equivalent to the payment i need to pay him or a Demand Draft issued by any Nationalized Bank? Will there be any issue regarding this like the Government taking this transaction as a Illegal one and issuing a fine on me? – Question by Reader

Transfer Money USWhenever you plan to make a payment or send funds to a Abroad Country then this transaction would be called as Outward Remittance and these kind of transactions cannot be easily managed. Actually Indian Currency is completely managed and the Reserve bank of India keeps a close watch on all the funds which are converted from Indian Rupees to United States Dollars or any other currencies. When you bring in thousands of Dollars through Paypal or Wire Transfers ie Bank Funds Transfer from the US to India, the Reserve Bank of India has no issues with it and it would rarely ask for any documents, except adding your PAN Card Number in your Paypal Account so that all the transactions are accounted, but when you need to even send a small amount of money from India to US, the govt acts weird with a number of rules. Here is a detailed process on how to perform this.

  • You need to visit a Nationalized Bank in your locality or else a Private Bank like ICICI Bank which have separate counters for these kind of NRI Services helpful for people who want to do Inter Country Transactions.
  • Next ask them to issue a Bank Check in foreign currency example USD. For this you need to have a Savings or Current Account with the Bank,
  • Following which the equivalent amount of money you would like to transfer would be debited to your Bank Account.
  • You will need to carry your Bank Account Passbook, Check Book for issue of check to debit the Bank Account, The invoice Note or Purchase Slip where the funds information is listed for payment.

The above listed process would look very simple because you just need to visit the bank and advice them to generate a Check in foreign currency but this won’t work always and there are risks along with delay involved. This is because you need to later send the Check via Post to the receiver and then they have to deposit the same in their Bank Account for clearance which would take more time.

A Indian National who wants to transfer their money to the United States needs to follow certain conditions and cannot remit more than 25,000 USD. If the payments are made from your Savings ie from your Tax Paid Income then you dont have to pay any other taxes on these transactions but if its for Business or a service offered, then the payment made would be charged with an extra 12.24% of Bank Charges or commission.

Services like Western Union, Ikobo, Xoom & MoneyGram won’t be applicable here because they are not allowed legally by the government. Its always adviced to confirm the fees the banks would charge you for the Wire Transfer Payments.

Alternative Ways :

  • Paypal – You can directly send payments through Paypal, but in this case the receiver should also have a Paypal Account and this service even though is almost instant would be charging you high amount of Transaction Fees when you plan to send higher amount of funds.
  • ICICI Outward Remittance – This is a excellent service from India’s Biggest Private Bank which offers you with Wire Transfer or Foreign Currency Demand Draft where you will be asked with the following details of the Receivers Bank Account – Bank Name, SWIFT Code, Routing Number, Bank Account Number etc. The service attracts a fees like 20$ when you send a amount of around 1000 USD and the correct details can be given by the Bank only.

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My name is Amit Bhawani and I am the chief blogger at Amit Bhawani Blog and where I like to share my internet/tech experience with my online readers on this website. You can read more about me at my About Page. You can follow me on Twitter, Facebook & Google +1 at +Amit Bhawani


  1. hi ,

    I need to sent to 1000 Euro To Switzerland .in a name of a compny
    and i want to sent it via my icici bank its there any complexion or any thing as the total amount is more then 50000rs as you all now current rate of euro is about 63rs so it would be around 63000rs + icici bank charges . please guide me as soon as possible


  2. Currency dealers says:

    I would like to thank you Amit for your information and posting such useful information. It will help me to transfer money abroad.
    Thanks again!!!!

  3. how can i transfer money in india my father deposit THE ROYAL BANK OF SCOTLAND INTERNATIONAL i want transfer in indian bank tall me what i do please

  4. I have a international debit card of hdfc bank written master card on it.. so can i use for shopping on USA site as a credit card for payement.

  5. anirudh jethalia says:

    I am selling a used laptop to an individual who is living in scotland. He plans to transfer money to bank account which is in icici and his account is in RBS. Now when I will ship the product am I applicable to any custom duties? also sir would there be any income tax issue and what will be the transaction charges taken by the my bank to convert $ into rupees. Please help me out sir.

  6. Tathagata Choudhury says:


    I am sending an amount of 15000 pounds to UK for my tuition fees. An initial amount of GBP 1000 pounds was send through by me but attracted GBP 25 by the receiving bank. Is the charges cut by the receiving bank a fixed rate or does it depend upon the money? If the latter, would sending a demand draft be is costly.
    Please advise :(

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