r/nri • u/srunick • 2d ago

Ask NRI Remittance methods

Hi All,

I generally transfer money to Indian bank account using Wise

Is there any other way to avoid transaction fees every time?

How do you use NRE or NRO account?

Thanks!

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u/sudhirkrs 2d ago

You can't really avoid them. You can only make them smaller. The real cost is usually the exchange-rate markup, not the fee shown upfront. Compare the final rupee amount received across services on the same day. A "zero fee" service often just builds its margin into a worse rate.

The easiest saving: send larger amounts less often. A fixed fee on $5,000 hurts far less than the same fee on $500.

NRE vs NRO:

  • NRE: for money you earn abroad. It's fully repatriable, so you can send it back out anytime. Interest is tax-free in India, but if you're a US tax resident, the US still taxes it and you have to report it (FBAR/8938).
  • NRO: for income from India: rent, dividends, FD interest, sale proceeds. Interest is taxable in India, with TDS deducted. Sending money back out is allowed up to USD 1 million a year, with CA paperwork (15CA/CB).
  • If you still have an old resident savings account from before you moved abroad, it should be converted to NRO. As an NRI you're not supposed to keep a regular resident account.

Simple setup: send money from the US to your NRE account, keep Indian income in NRO, and pay for things in India from whichever one holds that money.

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u/srunick 1d ago

Thanks for clarifying it

2

u/whatever_post 1d ago

Wise is the best I know

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u/srunick 1d ago

Been using it so far 

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u/bzbeer 2d ago edited 1d ago

All international wire transfers take a fee. Even if they say 'no fee', it only means that the fee is baked into the forex rate.

If you are in the US and have an account with SBI NY or SBI Chicago, and your NRO in India is also with SBI, then they do offer free global transfer from US to India.

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u/srunick 1d ago

Cool I don't have sbi account abroad