Things to watch out for while sending money to India from the USA

For NRIs in the USA, sending money to India is often a regular financial activity — whether it’s to support family, invest in real estate, pay for education or contribute towards long-term financial goals. While most NRIs are digitally savvy and financially aware, they need to be aware of certain errors and avoid them while transferring money to India.

These can lead to delays, losses in conversion, regulatory issues or even failed transfers. Fortunately, most of them are avoidable with the right awareness and approach.

In this blog, we outline the most frequent mistakes made by NRIs when remitting funds to India — and how platforms like ICICI Bank Money2India can help you avoid them through secure, transparent and compliant remittance services.

1. Not checking real-time exchange rates

What to avoid: Relying on static or outdated exchange rate estimates while initiating the transfer.

Why it matters: For large transfers, even a small fluctuation in the exchange rate can significantly impact the final amount credited in INR. If you proceed without checking the live rates, you may lose out on a more favourable conversion window.

What you can do:

• Use platforms like Money2India that offer competitive exchange rates. The transaction is settled at the rate locked at the time of initiating the transaction.

   

2. Overlooking transfer charges or hidden fees

What to avoid: Focusing only on the exchange rates while ignoring transfer fees or service charges that may reduce the final payout.

Why it matters: A platform offering competitive exchange rates may still levy fees that reduce the overall benefit, especially if you remit frequently or send large amounts.

What you can do:

• Choose a remittance service like Money2India, which typically has zero transfer fees for online remittances from the USA to India, if the transaction is above USD 1000 (If the transaction is less than USD 1000, a fee of USD 4 is charged)

   

• Review the full cost breakdown before initiating the transfer, including the exchange rate, transfer fee (if any) and method-specific bank charges.

   

3. Not verifying the details of the recipient carefully

What to avoid: Entering incorrect bank details of the recipient such as account number, IFSC Code or name.

Why it matters: Inaccuracy in entering the recipient’s information can result in delayed or failed transfers. In some cases, funds may be returned after deductions or held up due to verification issues.

What you can do:

• Double-check all the information of the recipient before confirming the transaction.

   

• Save verified details and profile of the recipient on your remittance platform for future use.

   

• Money2India ensures that the transactions are initiated only after validating the information with the Indian banking system. In case incorrect details are entered, transactions cannot be initiated.

   

4. Using unregulated or low-visibility service provider

What to avoid: Choosing platforms that lack banking credibility, regulatory oversight or transparency, just for marginally better rates.

Why it matters: While some third-party platforms may offer attractive rates or promotional offers, they may not provide the same level of compliance, data protection or customer recourse in the event of a dispute.

What you can do:

• Opt for a bank-operated platform like ICICI Bank’s Money2India, which offers the trust and assurance of one of India’s largest private banks.

   

• Ensure that the service is regulated in both the sending and receiving countries and follows KYC (Know Your Customer), AML (Anti Money Laundering), FEMA (Foreign Exchange Management Act) and FATCA (Foreign Account Tax Compliance Act) norms.

   

• Verify the platform’s security protocols, customer support options and transaction tracking features.
  
  
  

5. Using the wrong mode of transfer

What to avoid: Choosing ACH (Automated Clearing House) when time is of the essence or opting for a costly express service when not needed.

Why it matters: Different funding methods (ACH, Wire Transfer) vary in terms of cost and speed. Choosing the wrong one may delay the transfer or cost more than necessary.

What you can do:

• Understand the time and cost implications of different transfer methods:

   

  • ACH (Automated Clearing House): Usually free or low-cost, ideal for urgent transfers. In ACH based transfers, money is automatically debited from your US Bank Account and credited to the Indian recipient’s account.

     

  • Power Transfer (Wire based online transfer): Faster, better suited for high-value remittances. These transactions are settled within 1 working day.

     

• With Money2India, you can choose the method that fits your needs and get full visibility on the expected timelines.

   

6. Ignoring tracking of your transfers and related notifications

What to avoid: Not checking the status of your transfer after initiating it or relying solely on the confirmation from the bank’s end.

Why it matters: If a transaction is delayed, incomplete or held up for verification, you may not know unless you proactively track it.

What you can do:

• Use Money2India’s transaction dashboard to track transfers in real-time.

   

• Save transaction receipts and reference numbers for future reference or dispute resolution.

   

7. Not keeping records for high-value transfers

What to avoid: Failing to download or save receipts for remittances, especially those used for investments or financial disclosures.

Why it matters: You may need to provide evidence of remittances for income tax purposes, loan applications or financial reporting, both in the USA and India.

What you can do:

• Store digital copies of your transaction confirmations and receipts.

   

• Money2India provides access to transaction history, which can be downloaded or retrieved on demand.

   

• For high-value or recurring transfers, maintain a record of purpose, amount and recipient’s details.

FAQs

1. What’s the best way to avoid inaccuracies in entering the recipient’s details?

Always double-check the account number and IFSC Code and save the profile and details of the verified recipient on your Money2India dashboard.

2. Do I get a confirmed exchange rate with Money2India?

Yes, with Money2India you get the exchange rate which is locked at the time of initiating the transaction.

3. Are there limits on how much I can send from the USA to India?

No, there is no limit on how much you can send from the USA to India. Money2India allows you to transfer USD 300,000 or even more in a single transaction with assistance from the US offices and money is credited to India within 1 working day.

4. Does Money2India charge a fee for large transfers?

Transfer fee is not levied, if the transfers are above USD 1000.

5. What should I do if my transaction is delayed?

You can track your transaction in real-time and contact Money2India’s dedicated customer support for assistance or visit the ‘My Transactions’ tab on the Money2India platform.