Outward Remittance: How to Send Money from India to US or abroad?

About four months ago, before my trip to United States, I landed in a situation where I had to send a $500 check to my landlady in United States. And it was a disaster ! Never before I had known that it is so difficult to send money from India to other countries overseas. Perhaps the reason for this is that Indian Rupee is a managed currency. So RBI is obliged to keep a close watch on rupees which are converted to US Dollars or other international currencies. Sending money outside from India is also called outward remittance. After having one terrible experience, I think I now know some of the best ways to send money from India to a country abroad, which i will share in this post.

Sending a Check from India to USA or abroad

Remember that simply sending a Indian Rupee to someone outside does not work. The person located abroad will not be able to cash the check because of restrictions of Indian Government or RBI. Yes, you are right- you can receive a check in US dollars or other international currencies, RBI does not have a problem with that. but you cannot send a check in Indian Rupees. However you can send a check in US dollars or other international currency . To do this, you will have to go through the following procedure:

1. Go to your local Bank and ask them that you want a check in foreign currency. You will have to take a letter from the bank saying something like : you have a savings (or checking) account with them with account number so & so, and an amount of $500 US (or any other amount you want) may be debited from your account for the purpose of sending outward remittance.
2. With this letter you will probably have to go to other Branch of your Bank which handles foreign currencies. There you give the letter and fill out some form and wait to receive your check in US dollars or other currency.

What you should carry along with you :

1. You Passport.
2. Your Bank Account Passbook.
3. Reason for sending money outside and proof for that reason. For example, an email, or an invitation letter or any other such document.
   

Caution: The above process may look simple, but unfortunately it is terribly handled. The reason for this is perhaps outward remittance is not that common and officials are usually not aware of the procedure. I had first tried to get a US dollar check from Central Bank of India, and all that happened with me was different branches kept sending me to other branches and I never managed to get my overseas check. One of the bank manager asked me to furnish details of the bank account of the person to whom I was sending the dollar check. Isn't that ridiculous? If the person whom you are sending money to is not your close relative or friend why would he/she give her private bank account details to you? I almost hate Central Bank when I have to deal with transactions like this. I recommend you try State Bank of India, if you have an account with SBI. I got the job done in couple of hours without any harassment or having to furnish private bank account details of the person to whom I was sending outward remittance.

Other ways of Sending money from India to USA or Abroad

Because of the hassle involved, check is not the best way to send money from India to outside. There are other ways which you can try.

1. Send Money by Paypal: It is very easy to send money by paypal to anyone (no matter the location) with an email address. You can add funds in your Paypal India account using a credit card and paypal will transfer the funds to the paypal account of the person whom you are sending money. Opening a paypal account takes minutes. No filling up of forms required. Only disadvantage is that the person you are sending money to needs to open a paypal account.
   
2. ICICI Outward Remittance by Wire Transfer or Foreign Currency Demand Draft: There are some services offered by ICICI Bank or others where you can send money from India to a person abroad. You will still have to fill up some forms but i believe (have no first hand experience) that the process is lot easier than getting a check in US dollars.
   

There are also several other options of money transfer between two countries discussed in detailed in my post Send Money Abroad.

I encourage you to share any experience you have regarding sending money abroad with the readers in a comment.

Articles on Money Transfer Send Money Overseas or Abroad: The most popular and best ways to send money to your home country. Xoom Money Transfer Review Ikobo Visa - A new way to send money abroad where you send a re-loadable visa card to the beneficiary. MoneyGram Money Transfer and Money Order service. Online Remittance to India SBI Remittance Review - My most preferred method of sending remitting money to India. Good exchange rates. Send Money to India by Paypal HDFC QuickRemit

External Links

Western Union Money Transfer - A trusted way to send money where beneficiary collects cash from a Western Union location.

MoneyGram - International Money Transfer and Money Order. You send money, beneficiary collects cash from a chosen MoneyGram agent or location.

iKobo - Send Money Worldwide Money Transfer by ATM Card. Useful for those who have to send money frequently. Check foreign exchange rates on the homepage of iKobo.

Xoom Money Transfer - Online Remittance from United States to various other countries. Xoom Fees are around $8 per transaction.

Send Money to India

ICICI Remit to India Online Money Transfer to India. ICICI Exchange rates.

SBI Remittance Online Money Transfer to India. SBI exchange rates.

Remit2India Online Money Transfer to India. Remit2India exchange rates.

HDFC Quick Remit Remit Money to India online from U.S., U.K., Europe and Singapore. HDFC Quick Remit exchange rates.

CitiBank Online Remit Remit Money to India from US.

Disclaimer

I have been sending money to India for quite a few years. I have been involved in at least 50 money transfers to India and used 4 to 5 different methods of online remittance. Although I do make efforts to provide accurate information about services related to online remittance, none of the opinion, experience or reviews in this post should be used for making any decisions to remit money to India or any other country. It is easily possible that my experience or opinion about a particular remitting service is different from yours. It is your money that you want to remit. So please verify the information from your own authentic sources before making a choice for remitting your money. I do not accept any liability for incorrect or inaccurate information. Some of the links in the posts may be affiliate links, however the opinions and reviews presented in the post remain honest and unbiased.