Here is some information before sending money to India using Bank Transfer (Instant Speed):
- The recipient's bank account has to support IMPS and be able to receive transactions from outside India.
Immediate Payment Service (IMPS) is an instant payment inter-bank electronic money transfer system in India.
IMPS service is only available for several banks.
Not NRI (Non-Resident Indian) account, including NRE, NRO, and FCNR.
An NRI account is a type of bank account offered by Indian banks that provides management of financial needs in India for Indian citizens living abroad.
There are 3 types of NRI accounts:
- NRE (Non-Resident External) Account:
An NRE account is a rupee-denominated account that can be opened with money sent from abroad. The account holder can deposit and withdraw the money in Indian rupees.
The key feature of an NRE account is that the money held in this account is freely repatriable, which means the money can be transferred back to the foreign country without any restrictions.
NRO (Non-Resident Ordinary) Account:
- An NRO account is also a rupee-denominated account, but it is used to manage income earned in India such as rent, dividends, or pension. It can also be used for depositing the money from foreign sources.
- Unlike NRE accounts, the repatriation of money from an NRO account is subject to certain restrictions, and the account holder needs to follow the guidelines set by the Reserve Bank of India (RBI).
FCNR (Foreign Currency Non-Repatriable) Account:
- This type of account allows NRIs to hold foreign currency deposits in India.
- The account can be denominated in major foreign currencies like the US Dollar, Euro, British Pound, etc. The principal and interest earned on FCNR deposits can be freely repatriated.
So, before making transactions, please check with your bank whether the recipient’s bank account supports IMPS, can receive transactions from outside India, and not an NRI account to ensure your money is successfully sent to the recipient's bank account.