Inward Remittance To India: Guidelines, Process & Benefits


Inward Remittance To India: Guidelines, Process & Benefits

By Jupiter Team · · 5 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.

Inward Remittance Example:

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.

What are the types of inward remittance?

  • Bank or wire transfers
  • International money orders
  • Foreign Currency Cheques
  • Demand drafts
  • Online money transfer apps

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 foreign 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 foreign  inward remittance via MTSS 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 Foreign Inward Remittance

Process for the Sender:

  1. Choose a Remittance Provider: Use an accredited and legal Remittance Provider to send money to India.
  2. Provide Personal Information: Provide your personal information, including your complete name, address, phone number, and proof of identity, as requested by the remittance channel.
  3. Complete the KYC process: You might be asked for copies of your proof of identity, address proof and anything else that the remittance channel requests, depending on the rules.
  4. Give Recipient Details: Provide the recipient's full name, bank account number, bank branch information, and the reason for the transaction.
  5. Start the Transfer: Start the transfer by selecting the desired currency, the amount to be transferred, and any related fees. Select a method of transfer, such as a bank transfer or cash pickup.
  6. Make the Payment: Pay the transfer amount to the remittance channel by using one of the accepted payment methods by them.
  7. Keep the transaction reference number the remittance channel gave you and use it to track the transfer's status.
  8. Let the recipient know: Inform the recipient of the remittance and provide him/her with the details such as the reference number and the amount that was remitted.

Process for the Receiver:

  1. Share your Bank Account Information: Provide the sender with your bank account details they need such as the account number and branch details.
  2. Wait for Transfer Confirmation: Wait for the remitter to start the transfer and give you details such as the reference number and the expected amount that you will receive.
  3. Collect the amount sent: You can get the money sent to you via cash pickup from the bank or it will be deposited in your bank account, depending on the remitter's choice of transfer and the selected remittance method.
  4. Get the Foreign Inward Remittance Certificate (FIRC):  Once the amount is received, you should contact your bank and provide them with the necessary details to get a Foreign Inward Remittance Certificate (FIRC). It is a document that acts as proof of inward remittance to India.
  5. Confirm Funds Received: After receiving the funds and getting the FIRC, confirm the receipt of the funds and, if necessary, send the remitter a copy of the FIRC.

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.

4. What is the foreign inward remittance limit?

Under the RDA (Resident Foreign Currency) scheme, there is no upward inward remittance limit when transferring money to individuals in India.

Under the MTSS (Money Transfer Service Scheme), every inward remittance has an upper limit of $2,500. Additionally, a beneficiary can receive a maximum of 30 MTSS transfers annually for family expenses.

5. How to track inward remittance?

To track inward remittance in India, contact your bank and provide the required details. You can also check your online banking transaction history or reach out to customer support for assistance.

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