How to Transfer Money from UK to India
UK to India Guide
Summary
Since 2004, India and the UK have enjoyed a strategic partnership especially in the areas of economic and technological development, as well as cooperation in regional and global affairs. This coordination is further enhanced by the fact that it is easy to transfer money from UK to India and there are few restrictions to transfer money overseas into India.
Visas and immigration
UK citizens require a visa to travel to India. Although the process of obtaining a visa is not difficult, there are many different categories of visas to choose from and you will have to choose the one that is right for your particular situation.
You will have to apply for a tourist visa if you intend to visit friends and family or to vacation in India. Travellers must apply for this visa before leaving for India. It is usually valid for three to six months, allowing the holder a single, double, or multiple entries. A business visa is necessary for entrepreneurs and business people who intend to make sales or establish contacts in India. For this, applicants will require a letter from the company in the UK as well as the associate company in India. If you are going to be working with a company in India you will have to obtain an employment visa.
Within the UK, visa applications for India are handled by VFS Global. Before leaving for India it is important to check travel advisories for various elements of political and social unrest such as acts of terrorism and violence.
Banking, money and taxes
If you are living or working in India, having an Indian bank account will make it convenient to transfer money from UK to India. There are several major international and UK based banks in India, to include Barclays, Royal Bank of Scotland and HSBC. Many expats in India tend to lean more towards foreign-based banks with which they are most familiar. However, the Indian banking system has come a long way; offering more customer focused features and services such as online banking, widespread services and dedicated banking managers. Local banks such as ICICI Bank and HDFC Bank are much more competitive with greater accessibility and number of branches than international banks.
It is a fairly straightforward process to open a bank account in India and in some cases, employers are able to do this on behalf of their expat employees. In order to open a non-resident savings or checking account UK nationals will have to provide proof of identity, a copy of a passport or visa, proof of a local address and a copy of a residential permit.
Expats in India face the same taxation policies as Indian citizens. However, based on a double taxation avoidance agreement signed between India and the Government of the UK, expats who have lived in India for at least 180 days will only have to pay taxes on income earned in India.
Remittances
Indians are the largest minority group in the UK’s population 1,412,958, which amounts to 2.5% of the population. According to results from Oxford University’s Migration Observatory, of the £2,031 million in remittances sent from the UK, India accounted for one of the largest recipient countries. Indians rank among the top five ethnic groups for transferring money internationally. Money sent back home from the UK is usually aimed at helping family and relatives.
Economic relations between the UK and India
India is inviting increased investments from the UK in energy and infrastructure. The UK is one of India’s top trading partners. Bilateral trade amounted to $14.905 billion in 2012-2013.
Investment relationship between India and the UK
India is an attractive market for direct foreign investments because of cheaper wages and special privileges such as tax exemptions. The UK is India’s third largest investor. Total FDI from UK totalled US$20,759 million between 2000 to 2014. Several major UK companies have operations in India, which include BP, Tesco, ICI India, Reuters, British Telecom, Shell India and Unilever, to name a few.
The UK plans to double its trade relationship with India by 2015. Some recent UK investments in India include British Petroleum’s $7 billion partnership with Reliance, Serco investment of £385 million in Intelnet, McVities’ (United Biscuits) approximately $1.6 billion investment in a factories in India, which will be their first. Joint ventures are being developed between AeroDNA and several Indian clients with combined revenues amounting to £2.2 billion.
Educational cooperation between the UK and India
Approximately 5,000 Indians are studying towards obtaining UK degrees in India. The UK is active in implementing programmes to teach business level English in India, which thus far has affected over 17 million Indian learners. The British Council is also active in educating more than 750,000 English teachers. Primary level education in English is now being delivered as part of the initiative of Primary Education for all.
Each year, more than 700 scholarships are granted to Indian citizens from UK institutions. These scholarships allow for future leaders and decision makers in India to access the resources of Britain’s top educational institutions. In 2012 a Jubilee Scholarship programme was launched by the British Council and the government of the UK. It enables 60 Indian youth to engage in a one year Masters programme in manufacturing, management or science and technology at a participating UK educational institution.
Development activities in India
Development is a primary element of the UK-India partnership aimed at promoting prosperity, combating poverty, and helping to realize the Millennium Development Goals. The UK-India development programme targets the poorest states in India – Madhya Pradesh, Bihar, and Odisha with the aim of providing jobs, developing infrastructure, providing products and basic services. The main focus is to provide educational opportunities, nutrition, healthcare, and jobs to the poorest women and girls. As a result, more than 2.3 million Indian citizens have moved out of poverty, and 1.2 million children have been able to go to school. India has also been free of polio for the past ten years.
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 UK 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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