Inward Remittance To India: Guidelines, Process & Benefits


Inward Remittance To India: Guidelines, Process & Benefits

By Jupiter Team · · 4 min read

Indians worldwide send significant amounts of money to India annually. They send money for various reasons, ranging from supporting families to investing in India. Inward foreign remittance implies transferring money to India from a foreign nation. With technological advancements, you no longer need to visit the bank to send money to India. You can use online platforms to execute inward remittances.

This blog explains inward remittance and other relevant facts to help you safely and swiftly send money to India.

What is Inward Remittance?

In common parlance, inward remittance meaning relates to money transfers to an account in the home country from abroad. Money transfers to India from abroad are known as inward foreign remittance or foreign inward remittance. You can transfer money from overseas to your account in India or get it done by a third party. For example, you are a non-resident Indian (NRI) settled in Amsterdam. Every month you send a part of your salary back home to your parents’ account in India. The remittance money received by your parents is inward foreign remittance.

RBI Guidelines for Inward Remittance

The Reserve Bank of India (RBI) has stipulated certain guidelines to regulate inward foreign remittances to India.

1.      An inward foreign remittance can be undertaken for certain purposes. You can send money to India only to pay for medical treatment, education, travel expenses, investments, financial support, donations, living expenses or as a gift.

2.      For every inward foreign remittance, the recipient bank must issue a Foreign Inward Remittance Certificate (FIRC). FIRC is a receipt issued from the recipient bank in India to acknowledge receipt of money in their account from overseas. The details in FIRC include name, sender/recipient account numbers, transfer purpose, exchange rate and so on.

3.      The RBI has stipulated two ways for individuals in India to receive an inward foreign remittance: Rupee Drawing Arrangement (RDA) and Money Transfer Service Scheme (MTSS). Inward remittances under RDA and MTSS must be via authorised dealer banks in India.

a)      RDA scheme has no upward inward remittance limit for transferring money to individuals in India for personal purposes. RDA has an upper limit cap of Rs. 15 lakhs for commercial remittances. You must send money directly into an Indian bank account.

b)      MTSS scheme has an inward remittance limit in India. Every inward remittance has an upper limit of $2500. A beneficiary can receive a maximum of 30 MTSS transfers annually. You can send money to India for family expenses. However, you cannot send money for any donation, commercial activity, investments, buying property, or non-resident external (NRE) account.

Benefits of Inward Remittance

Inward foreign remittances provide benefits to —

Individuals and Families

NRIs send inward foreign remittances to support their families in India for their medical expenses, children’s education etc.


India is one of the biggest recipients of foreign inward remittances globally. In 2021, India received $87 billion in inward remittances, making it the highest recipient among low and middle-income nations. Inward foreign remittances are a major source of foreign exchange for India, fueling its economic growth.

Process of Inward Remittance

There are various modes through which you can conduct inward foreign remittance in India. Wire transfers and electronic transfers are the two common methods of sending money to India.

  1. Under a wire transfer, your bank acts as the intermediary for transferring money to the beneficiary’s account. It normally takes 3-5 working days to transfer money via wire transfer.
  2. Under electronic funds transfer (EFT), you can transfer money to India within one working day. EFTs are done through mobile or tablet apps and online. It is a paperless medium. Money transfer apps make use of EFTs for making payments. You will need to share certain details with the sender like full name, address, bank’s SWIFT code, the purpose of money transfers and so on. The senders initiate the money transfer upon receiving the information. You get a notification on your phone or email when inward remittances are received.

Fees & Charges for Inward Remittance

The charges for inward foreign remittance differ between service providers. Normally it is zero fee transfer. However, the intermediary bank could charge a fee for a money transfer to India. In addition, you may need to pay the foreign currency conversion charge. Likewise, you may have to pay service tax on remittances. Your bank will provide you with the details of the charges applicable for your inward remittance limit in India.


Inward foreign remittance means you can send money to India from overseas into any bank account. The beneficiary gets access to the funds in local currency after payment of the charges. Online money transfer apps help you to make seamless inward remittances.


1. What are the fees & charges applicable during inward remittance to India?

Inward foreign remittance charges differ between service providers. However, the fees and charges depend on factors like the type of account, the country from where you make the remittance and the existing currency exchange rate.

2. How to send money to India from abroad?

You can send inward foreign remittances to India through various options. These include bank or wire transfers, international money orders, cheques, demand drafts, and online money transfer apps. You should choose from the best bank for inward remittance in India to get the maximum benefit.

3. How many days does it take to settle an international money transfer?

The number of days for settling an international money transfer depends on the payment option chosen. International money transfers via banks or wire transfers get settled within 2-5 working days, while online money transfer apps are quicker.

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