Can I Use TransferWise to Send Money from India? Everything You Need to Know

Sending money internationally can feel overwhelming with so many options and restrictions. If you’re in India and looking for a reliable way to transfer funds abroad, you might be wondering if TransferWise, now known as Wise, is the right choice. It’s a popular platform praised for its low fees and transparent exchange rates, but does it work seamlessly from India?

I’ve explored this question myself and understand how important it is to find a service that’s both efficient and cost-effective. Whether you’re supporting family, paying for education, or managing business transactions, knowing your options is key. Let’s dive into whether Wise is a viable solution for sending money from India and what you need to consider before getting started.

Overview Of TransferWise

TransferWise, now known as Wise, is a globally recognized financial technology platform. It facilitates international money transfers with transparent fees and real exchange rates.

What Is TransferWise?

TransferWise began in 2011 as a solution for cross-border financial transactions. Unlike traditional banks, it uses local accounts in each country to reduce costs, eliminating high fees often associated with currency conversions. Its services are accessible through a mobile app and a website, offering a user-friendly interface for individuals and businesses.

Key Features Of TransferWise

• Transparent Pricing: Displays all fees upfront, ensuring no hidden costs. For example, a $1,000 transfer to Europe would show an itemized breakdown before confirmation.
• Real Exchange Rates: Uses mid-market exchange rates without adding margins, unlike traditional providers.
• Speed: Processes most transactions within 1-2 business days, depending on the recipient country and payment method.
• Global Accessibility: Supports over 170 countries, including popular corridors like the US, UK, and EU.
• Multi-Currency Accounts: Allows users to hold, convert, and spend in over 50 currencies.
• Security: Regulated by financial authorities like the Financial Conduct Authority (FCA) in the UK, ensuring compliance and safety.

TransferWise Availability In India

Wise (formerly TransferWise) offers services in many countries, but its accessibility in India is subject to specific limitations and regulations.

Is TransferWise Accessible In India?

Individuals in India can receive money through Wise but cannot use it to send funds abroad. Reserve Bank of India (RBI) regulations directly limit outbound remittance services for Wise.

For example, while users in Europe or the US can send money internationally using Wise, Indian users are restricted to receiving transfers into their local bank accounts. This restriction prevents Wise from functioning as a two-way remittance solution within India.

Regulations And Legal Considerations

The RBI governs all foreign exchange transactions in India under the Foreign Exchange Management Act (FEMA). Platforms like Wise must comply with rules ensuring proper validation of outbound and inbound remittances.

Wise doesn’t currently meet RBI’s framework for outward remittance. This includes the Liberalised Remittance Scheme (LRS), which caps the amount individuals can remit annually and mandates partnered entities for currency exchange. Due to this constraint, Wise focuses only on receiving money in India, not initiating outgoing transfers.

How To Send Money From India Using TransferWise

TransferWise, now Wise, currently doesn’t support outbound money transfers from India due to Reserve Bank of India (RBI) restrictions. However, I’ll detail how to use Wise in general for international money transfers, assuming future regulatory changes allow outbound remittances.

Step-By-Step Guide To Using TransferWise

1. Create An Account

Sign up on the Wise website or app by providing an email, Google account, or Apple ID. Verify your profile using identification documents, complying with regulatory requirements.

1. Select Transfer Details

Choose the amount, currency, and recipient details. Enter bank account information, ensuring accuracy to avoid delays or rejections.

1. Funding The Transfer

Deposit the transfer amount into Wise’s local account. This step isn’t currently possible in India due to RBI restrictions on outbound transactions.

1. Track The Transfer

Use Wise’s live tracking feature to monitor progress. Both the sender and recipient receive updates when the transaction completes.

Fees And Exchange Rates

Wise charges transparent fees based on the transfer amount and currency. It uses the mid-market exchange rate, which avoids hidden costs. For example, transferring $1,000 internationally might incur fees ranging between 0.35% to 1%, depending on payment methods and destination. I recommend reviewing Wise’s fee estimator on their platform for up-to-date information.

Benefits Of Using TransferWise For Sending Money From India

1. Transparent Fees

TransferWise offers upfront pricing with no hidden costs. Users know the exact fee and amount their recipient will receive before confirming a transfer.

1. Real Exchange Rates

Unlike traditional banks that often add markups to currency conversion rates, TransferWise uses the mid-market exchange rate. This ensures cost efficiency for every transaction.

1. Quick Transfers

Transfer processing is faster than many conventional services. With TransferWise using local accounts in participating countries, delays caused by intermediary banks are reduced.

1. User-Friendly Interface

The mobile app and website are simple to navigate. Users can easily initiate transfers, track the process in real-time, and access support when needed.

1. Global Accessibility

Available in over 70 countries, TransferWise supports more than 50 currencies. This wide coverage makes it suitable for both personal and business transactions.

1. Security and Regulation

Licensed by financial authorities, TransferWise employs robust encryption to safeguard transactions. Additionally, it must adhere to strict compliance standards globally.

1. Multi-Currency Capabilities

With a Wise account, users can hold and convert multiple currencies. This allows recipients abroad to keep funds in their local currency without losing money on unnecessary conversions.

While outbound transfers from India are currently restricted due to Reserve Bank of India regulations, these benefits make Wise an attractive option for outward remittance if regulatory changes occur.

Limitations And Restrictions

Wise faces significant limitations for sending money from India. Due to Reserve Bank of India (RBI) regulations under the Foreign Exchange Management Act (FEMA), Wise cannot facilitate outward remittances from India. Indian users can only receive international transfers into their local bank accounts but cannot use Wise to send money abroad.

RBI regulations restrict the use of foreign financial technology platforms for outbound transfers. Wise complies strictly with these rules, limiting it to inward remittance services in India. This regulatory framework impacts users in India who may seek cost-effective, transparent options for sending money internationally.

Funding outbound transfers through Indian bank accounts or payment methods is not possible using Wise. Unlike users in countries like the US, UK, or Canada, Indian users cannot link a bank account or credit card to initiate transfers through Wise.

Currency conversion for outward remittances is also unavailable. The lack of outbound services means Indian users cannot benefit from mid-market exchange rates or the low, transparent fees Wise is known for globally. Regulatory constraints prevent Wise from offering its full range of features to Indian residents.

Alternatives To TransferWise In India

Several alternatives are available for sending money internationally from India, given the restrictions on TransferWise (Wise). These platforms comply with Reserve Bank of India (RBI) regulations, ensuring reliability.

1. PayPal

PayPal allows international money transfers and supports multiple currencies. It’s widely accepted for online transactions, though fees for currency conversion and service charges can be high.

1. Instarem

Instarem offers competitive exchange rates and lower fees compared to traditional banks. It supports transferring funds to over 50 countries and provides a user-friendly experience.

1. Western Union

Western Union facilitates both online and cash transfers to numerous countries. Its extensive network of agent locations ensures accessibility, but exchange rates may be less favorable.

1. Skrill

Skrill supports digital wallets and international transfers at reasonable fees. It’s suitable for smaller transactions and offers added features like cryptocurrency transactions.

1. BookMyForex

BookMyForex provides forex cards and international wire transfers. It offers competitive exchange rates and transparency, making it a strong option for outward remittance.

1. Wise Remit

Wise Remit, unrelated to TransferWise, operates in India and supports outward remittance. It aligns with RBI guidelines, offering a simple process for transferring money.

These platforms adhere to Indian regulations while delivering diverse options for remittances.

Conclusion

While Wise stands out as a reliable and cost-effective platform for international money transfers, its current limitations in India make it unsuitable for sending money abroad. Due to RBI regulations, Indian users can only receive funds, restricting the platform’s full potential.

For now, exploring alternative services that comply with local regulations is essential for anyone looking to send money internationally from India. If regulatory changes occur in the future, Wise could become a valuable option for outbound remittances, offering transparent fees and real exchange rates.

Frequently Asked Questions

1. What is Wise, and how does it work for international money transfers?

Wise, formerly TransferWise, is a financial platform offering international money transfers with transparent fees and real exchange rates. It reduces costs by using local accounts in sending and receiving countries, avoiding high currency conversion fees. Users can send and receive money globally through its app or website.

2. Can I send money abroad from India using Wise?

No, Wise currently does not allow sending money abroad from India due to Reserve Bank of India (RBI) regulations. Indian users can only receive international transfers into their local bank accounts.

3. Why does Wise restrict outbound remittance in India?

Wise adheres to RBI regulations under the Foreign Exchange Management Act (FEMA), which restrict foreign platforms from facilitating outbound remittances. This compliance prevents Wise from enabling money transfers out of India.

4. What are the key advantages of using Wise for international money transfers?

Wise offers low, transparent fees, real mid-market exchange rates, fast transfers, global accessibility, and a user-friendly interface. It is a secure platform regulated by financial authorities and supports multi-currency accounts.

5. How much are the fees for using Wise?

Wise charges transparent fees based on the transfer amount and currency. It uses the mid-market exchange rate, eliminating hidden charges typically associated with currency conversion.

6. How do Indian users receive money through Wise?

Indian users can receive money directly into their local bank accounts via Wise. The sender can initiate the transfer from countries where Wise outbound services are available.

7. Are there alternatives to Wise for sending money internationally from India?

Yes, alternatives include PayPal, Instarem, Western Union, Skrill, BookMyForex, and Wise Remit. These options comply with RBI regulations and offer features tailored to outbound remittance needs.

8. Can I use Wise for business transactions internationally?

Yes, Wise supports international business transactions in many countries with features like multi-currency accounts and swift transfers. However, Indian businesses cannot initiate outbound remittances due to RBI restrictions.

9. Is Wise secure for international money transfers?

Yes, Wise is highly secure, with robust encryption and compliance with financial regulators in every operating country. Its strong security measures protect user data and funds.

10. What should Indian users do for sending money abroad?

Indian users must rely on RBI-compliant platforms like PayPal, Instarem, or Wise Remit. These services allow lawful and efficient outbound remittances in alignment with Indian financial regulations.