Every rupee counts when you’re transferring money internationally. Whether you’re a parent funding your child’s tuition in the US, a student paying rent in the UK, or someone supporting a family settled abroad, the method you choose directly affects how much actually lands in the recipient’s account.
India’s outward remittance market has grown significantly, and so has the number of ways to send money abroad. The options range from traditional bank wire transfers to fully digital platforms, each with different fee structures, exchange rates, and processing times.
What is the Liberalised Remittance Scheme (LRS)?
Before choosing a method, understand the framework. Under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), resident Indians can remit up to USD 2,50,000 per financial year for permitted purposes, education, travel, medical treatment, gifting, investments, and more.
All outward remittances must comply with LRS. Any platform you use, bank or digital, operates within this regulatory framework.
Methods to send money abroad from India
Here are some popular methods to send money abroad:
1. Bank wire transfers (SWIFT)
The most traditional method. You walk into your bank, fill out a form, and the money moves via the SWIFT network.
How it works: Your Indian bank debits your account in INR, converts it at their internal exchange rate, and sends the equivalent foreign currency to the recipient’s overseas bank account.
What to watch out for:
- Exchange rate markups of 3–5% above the interbank rate
- SWIFT fees ranging from ₹500 to ₹2,000 per transaction
- Correspondent bank charges at the receiving end (often deducted from the transferred amount)
- Processing time of 3–5 business days
Wire transfers are reliable but rarely cost-effective. For large sums like tuition fees, even a 3% markup on ₹10 lakh means ₹30,000 lost silently.
2. Demand Drafts (DD) and banker’s cheques
An older method, still accepted by some universities and institutions abroad. Your Indian bank issues a Demand Draft in foreign currency, which the recipient deposits at their bank.
DDs are slow (delivery time included), carry high issuance charges, and are largely being replaced by faster digital options. Avoid unless specifically required.
3. Prepaid forex cards
Forex cards let you load a fixed amount in foreign currency before travelling or transferring. They’re useful for discretionary spending abroad but are not built for large remittances.
Key limitation: You lock in an exchange rate at the time of loading. If the rate moves in your favour after, you don’t benefit. There are also reload fees, cross-currency charges, and balance encashment charges to factor in.
4. Online remittance platforms
This is where the market has evolved the most. Digital-first platforms now offer faster, cheaper, and more transparent international money transfers directly from India, no branch visit required.
Niyo’s Send Money Abroad feature is one of the standout options here.
Why Niyo is one of the best ways to send money abroad
Niyo’s international money transfer service is fully digital, RBI-compliant, and built specifically for Indians sending money abroad, particularly for education.
Here’s what makes it worth considering:
Zero fees and the lowest forex markup
Most banks and platforms charge a platform fee on top of the exchange rate markup. Niyo charges zero platform fee and offers one of the lowest forex markups in the market, translating to savings of over ₹20,000 per ₹10 lakh transferred, compared to traditional banks.
Transfers to Multiple countries
With Niyo, you can transfer major currencies like USD, GBP, EUR, CAD, AUD, and SGD across 130+ countries.
Fully RBI-regulated
Transfers are processed through Kanji Forex Private Limited, an RBI-authorised Authorised Dealer Category II licensed entity, ensuring full FEMA compliance and security.
End-to-end digital tracking
Once your transfer is initiated, you can monitor its progress in real time through the Niyo app or website; there’s no need to call a branch and wait on hold.
Arrives in 2–3 business days
Once documents are verified and payment is made, international transfers typically reach the recipient within 2–3 business days.
How to send money abroad via Niyo
The process is easy:
- Visit goniyo.com/send-money-abroad and select “Send Money Abroad”
- Choose the recipient’s currency and enter the amount
- Add your recipient’s overseas bank account details
- Upload the required documents (passport, visa, university admission letter)
- Make payment via UPI or internet banking from any Indian bank account
- Track your transfer in real time through the app
Key things to keep in mind
Here are some key pointers to keep in mind while sending money abroad:
TCS (Tax Collected at Source)
As per current rules, remittances above ₹7 lakh per financial year (except for education and medical purposes funded by loans) attract TCS. Education remittances funded by a loan from a financial institution attract TCS at 0.5% above ₹7 lakh. It’s deductible when you file your income tax return.
LRS documentation
Keep your PAN card, passport, and purpose-specific documents (such as university fee receipts or accommodation agreements) ready before initiating any transfer.
Timing matters
Exchange rates fluctuate daily. For large transfers, check rates across platforms before transacting.
Final takeaway
The best way to send money abroad from India depends on your purpose, urgency, and the amount involved. For most families managing education remittances, a platform like Niyo offers a clear edge, zero fees, low markup, fast processing, and full regulatory compliance.
Traditional bank wire transfers remain an option, but the hidden costs add up fast. Before your next transfer, compare rates, factor in all charges, and choose a method that puts more money where it matters.