How to Send Money from India While Studying Abroad — Best Options 2026

🏦 RBI Liberalised Remittance Scheme (LRS)

All remittances from India to abroad are governed by the Reserve Bank of India's Liberalised Remittance Scheme (LRS).

• Annual limit: USD 250,000 (approximately ₹2.1 crore) per financial year per resident individual
• Permitted uses: Tuition fees, living expenses, rent, books, health insurance, travel — essentially all education-related expenses
• How to remit: Through your Indian bank's forex department or authorized money changers. Online remittance via your bank's net banking is the easiest route.
• PAN mandatory: PAN card is required for all foreign remittances. Purpose code must be specified (student: purpose code S1302 — Maintenance of close relatives abroad / educational purposes)
• Form 15CA/15CB: For remittances above ₹5 lakh, your bank may require Form 15CB (CA certificate) and 15CA (self-declaration). For educational expenses paid directly to foreign universities, it is generally exempt — check with your bank.

📊 The 20% TCS on LRS Remittances — Explained Simply

From October 1, 2023, a 20% Tax Collected at Source (TCS) applies to LRS remittances above ₹7 lakh per financial year. Here's what you actually need to know:

Practical tip: If you're taking an education loan from a bank or NBFC in India to fund your studies, the TCS rate on loan-funded remittances is only 0.5% — a massive saving. Structure your funding accordingly.

💸 Best Methods to Transfer Money from India to Abroad

1. Wise (Best for Bank-to-Bank Transfers)

Wise (formerly TransferWise) is the gold standard for international transfers among Indian students. It uses the mid-market exchange rate with a small, transparent fee (typically 0.5-1.5% of the amount).

• How it works: Send in INR from your Indian bank → recipient receives in local currency
• Speed: Typically 1-2 business days
• Best for: Paying rent, transferring monthly living allowance, one-time large transfers
• Setup: Create a Wise account, link your Indian bank account, add recipient's foreign bank details
• Note: Wise is not a bank — transfers must stay within LRS limits

2. Your Indian Bank SWIFT Transfer (Convenient but Expensive)

All major Indian banks (SBI, HDFC, ICICI, Axis) offer international SWIFT wire transfers via net banking.

• Fees: ₹500-2,000 per transfer + poor exchange rate (1.5-3% above mid-market)
• Speed: 2-5 business days
• Best for: One-time large transfers (tuition payment) when convenience matters; not for frequent monthly transfers
• Use SBI's Student Transfer Scheme — SBI offers lower charges for student education remittances (flat fee + better FX rates)

3. BookMyForex (Best for Advance Rate Locking)

An RBI-authorized online forex marketplace that lets you lock in exchange rates up to 3 days in advance.

• Best for: Loading forex cards, ordering foreign currency cash for arrival
• How: Order online → doorstep delivery or branch pickup in Hyderabad
• Rates: Generally 0.5-1% better than bank counters

4. International Credit Cards (Only for Emergency)

Using your Indian credit card abroad is expensive — most banks charge 2-5% forex markup plus ATM fees. Avoid for regular use. Reserve for genuine emergencies when no other option is available.

💳 Forex Cards — Which to Choose for Indian Students

A forex card preloaded with foreign currency in India is the best tool for day-to-day spending abroad. You lock in the exchange rate when loading.

Recommended: Get Niyo Global before you leave India. It works like a debit card linked to a zero-balance account, gives interbank rates, and has a strong app for tracking spending abroad.

📉 Cost Comparison: Sending ₹5 Lakh Abroad

On a ₹5 lakh transfer, using Wise vs. a regular bank SWIFT can save you ₹6,000-12,000. Over a 2-year course with monthly transfers, this adds up to ₹70,000-1,50,000+ in savings.

💡 10 Money-Saving Tips for Indian Students Abroad

1. Lock exchange rates in advance — Use BookMyForex or Wise to transfer when INR is strong (avoid transferring during INR weakness)
2. Pay tuition directly from India — Send tuition directly to the university's bank account from India using SWIFT — avoids bank account conversion fees abroad
3. Use TCS to your advantage — If taking an education loan, TCS drops from 20% to 0.5% — a huge saving on large transfers
4. Get Niyo Global card before leaving India — Zero forex markup for all international spending
5. Open a local student bank account immediately — Most countries let international students open free student bank accounts. Use this for local transactions and salary (if working part-time).
6. Transfer in larger amounts, less frequently — Fewer transfers = fewer fixed fees. Transfer monthly living allowance once, not weekly
7. Track exchange rate trends — Apps like Xe, Wise, and Currency.me show 30-day trends. Transfer when INR is stronger
8. Claim TCS in ITR — File your ITR (even with zero income) to claim TCS refund. Your parents should file Form 15CA/CB for transfers and claim TCS in their ITR
9. Avoid dynamic currency conversion (DCC) at ATMs — Always choose local currency when an ATM abroad asks "Would you like to pay in INR?" Choosing INR lets the ATM do the conversion at terrible rates
10. Keep an emergency fund in India — Maintain ₹1-2 lakh in an Indian savings account accessible via your Indian debit card for genuine emergencies

Frequently Asked Questions