How to Transfer Money from Kuwait to India
Kuwait to India Guide
Summary
Kuwait and India have traditionally had strong bilateral relations, which continue to be strengthened by trade links and important migration flows between the two countries. Kuwait and India’s trade relationship dates back several centuries, and in fact, Kuwait used the rupee as its national currency until 1961. The Kuwaiti dinar (KWD) is easily convertible to the Indian rupee (INR), and there are no restrictions to transfer money from Kuwait to India.
Visa and immigration
Nationals of Kuwait must have a passport with at least six months’ remaining validity in order to travel to India. Applying for an Indian visa can be fairly complex, as visa requirements can be somewhat complex, and there are several categories from which to choose. Before applying, you must make sure that you identify the correct visa for your particular situation, which may include work visas, tourist visas, employment visas and business visas.
You must apply for the visa from the local Indian consulate or through a private visa agency before arrival. In general, visas can be processed between five and seven business days. If you intend to remain in India for longer than 182 days, you will have to get a residence permit. In order to do this, you are required to register with the Foreigner Regional Registration Office (FRRO). Its main offices are located in Delhi, Amritsar, Kolkata and Mumbai. Outside of these cities, you may register with the Superintendent of Police. For more information on obtaining a visa for India, visit the website of the Indian Consulate.
Banking and Money
India’s banking sector has expanded rapidly in the last decade, apace with economic growth. There are a variety of public, private and international banks to choose from when looking to establish a banking relationship in the country. In total, there are roughly 126,000 bank branches nationwide, with 22,300 ATM machines currently available.
Despite the fact that expats opt for internationally based banks for their familiarity, both public and private banks offer comparable services and products. However, international banks sometimes have higher service charges. The leading local banks are HDFC Bank and ICICI Bank. Global banks with a presence in India include Barclays, Royal Bank of Scotland, Citibank and HSBC. In addition, there are a few branches of the Bank of Bahrain and Kuwait in major Indian cities such as Delhi. Kuwaiti nationals may choose to open a bank account before travelling to India as this may make it more efficient to transfer money from Kuwait to India.
Expats from Kuwait should be able to open a non-resident savings or checking account if they are earning income in India. The benefits you receive from the particular bank you choose will vary. However, as a minimum, you may receive ATM cards, cheque books, and access to telephone and internet banking. In order to open an account, you will be required to provide proof of identity, a copy of travel documents, proof of address in India, and a copy of your Indian residency permit. Some companies may open bank accounts on behalf of their expatriate employees.
Kuwaiti nationals who want to send money home are legally allowed to transfer a maximum of US$1m for each financial year. Several remittance agencies are present, such as Western Union and MoneyGram, as well as independent forex brokers, who typically offer the same service at a lower cost.
Taxation
Kuwaiti nationals working and earning income in India are subject to the same taxes as Indian nationals. You will pay taxes on any income gained in India. Personal taxes can be as much as 30%. The tax year in India runs from 1 April to 31 March of the following year.
Trade with India
India remains one of Kuwait’s top ten trading partners. In turn, Kuwait is the third-largest supplier of crude oil to India. In 2017, trade between both countries amounted to more than US$2.5bn, with India having imports of more than US$700m and exports of more than US$1.7bn. India’s major exports to Kuwait include textiles, garments, food items, jewellery, machinery, iron, and other mechanical and metal products.
Investment in India
Kuwaiti investments in India are one of the primary factors driving money transfers to India. Several organisations in Kuwait are invested in India, whether through foreign direct investment (FDI) or through routing through countries such as Mauritius, which provide tax breaks. Many investments are made through institutions such as the Kuwait Investment Authority (KIA). Today, the KIA maintains investments worth an estimated US$2.7bn in India.
Kuwaiti businesses also have a strong presence in India, another key driver of overseas money transfers. These include Noor Investment, Kuwait Finance House and KGA Group. Several investment funds have been established by Kuwait, such as the India Infrastructure Fund and the Kuwaiti Indian Holding Company.
Frequently Asked Questions
Are the money transfer companies shown above safe to use?
Yes, all the companies are safe and fully-regulated money transfer services.
Each are authorised and regulated by the relevant authority such as the Financial
Conduct Authority(FCA) in the UK, FinCEN in the US, FinTRAC in Canada or ASIC in Australia.
How long does an international money transfer take?
The speed of delivery will depend on where the money is being from and to and how
you are sending and receiving the money. Transfers sent using bank to bank transfers
can depend take anywhere from minutes to days and you should check the time estimates
from the relevant provider. Debit and credit card payments sometimes allow for faster
transfers for smaller amounts.
How do I use FXcompared?
First review the comparison results (such as for a table above) for a given amount
of money sending from Kuwait to India. Then select a provider based on
factors such as price, speed, their rating and click the green button to be taken to
their website. From there, you can register and sign up for an account. Once you have
done that and the provider has verified your identity to ensure the money can be send
safely, you will be ready to transfer money.
What payments methods can I use to send money overseas?
The results shown above are typically for bank to bank transfers. It is possible
via some providers to pay in your funds for the transfer via cash, debit or credit
cards as well but this is usually reserved for smaller amounts. Some providers also
give you different options for how the money will be received - to a bank account
(most common), to a debit card, to cash or to a digital or mobile wallet.
What if the price shown above isn’t exactly what I am offered when I try to transfer money?
There can be a number of reasons why the final price you are offered may be different
to that shown in the table above. Exchange rates between two currencies change all
the time and is the most common reason. Additionally, some providers offer different
pricing depending what method you are using to send funds or how the funds will be
received. Others may offer you a premium service for faster payments. In some cases
FXcompared has a special rate with a provider and this is reserved for first time
customers who sign up to the provider starting from FXcompared’s website.
As prices do change often, be sure to confirm the total cost with the provider
before transferring money.
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