In today’s global economy, more people are living and working across borders than ever before. Sending money from India to the UAE has become a regular financial activity for individuals supporting family, investing in businesses, or settling international payments. With increasing options and digital platforms, knowing the best, fastest, and safest way to transfer money from India to UAE is more important than ever.
Why Indians Send Money to the UAE
There are several reasons why residents in India might need to send funds to the UAE:
- Supporting family members or dependents living in Dubai or Abu Dhabi
- Making business payments
- Paying for education fees or property-related transactions
- Funding investments or startup ventures
No matter the reason, the key is using legal, cost-effective, and fast remittance solutions that follow all government rules.
Is It Legal to Send Money from India to the UAE?
Yes, sending money from India to the UAE is legal as long as it complies with the Reserve Bank of India’s Liberalised Remittance Scheme (LRS). Under this, Indian residents are allowed to send up to USD 250,000 per financial year abroad for permitted purposes.
Understanding FEMA Guidelines for International Transfers
The Foreign Exchange Management Act (FEMA) governs all foreign currency transfers from India. It requires:
- Disclosure of purpose for transfer
- Using authorized dealers (ADs) like banks or approved financial companies
- Maintaining documentation and compliance
Violating FEMA guidelines can lead to penalties or investigation.
Popular Ways to Send Money from India to UAE
There are multiple channels to transfer money abroad:
- Bank wire transfers
- Online remittance platforms
- Foreign exchange agents
- International money transfer apps
Each method has different charges, speed, and documentation requirements.
Using Bank Wire Transfers for Sending Money to UAE
Traditional banks remain a trusted option for international transfers. Most Indian banks, including SBI, ICICI, HDFC, and Axis, offer SWIFT-based wire transfer services.
Pros:
- Regulated and secure
- Best for large sums
Cons:
- Slower processing (1–3 days)
- Higher fees and foreign exchange margins
How to Use Online Money Transfer Services
Online remittance platforms have made sending money abroad easy, fast, and affordable. Top companies include:
- Wise (formerly TransferWise)
- Remitly
- Western Union (online)
- Xoom by PayPal
You can register, verify your ID, and initiate transfers online.
Top Apps and Platforms for International Remittance to UAE
Some highly-rated apps for India-to-UAE transfers include:
- Wise – transparent fees and mid-market exchange rates
- Remit2India – designed for Indian expatriates
- Instarem – competitive rates and fast delivery
- MoneyGram – reliable with wide reach
Choose a platform that offers fast transfers, low fees, and strong security.
What Is the Cost of Sending Money to UAE from India?
Several charges affect the total cost:
- Transfer fees (flat or percentage-based)
- Currency conversion margins
- GST or additional bank charges
Always check the total cost, not just the transfer fee, to compare services.
Exchange Rate Considerations When Transferring Funds
The exchange rate from INR to AED (Indian Rupee to Dirham) changes daily. Even a small fluctuation can impact the total amount received in the UAE.
To save more:
- Choose services offering mid-market exchange rates
- Avoid those with hidden markup fees
Step-by-Step Process to Transfer Money from India to UAE
- Select a Transfer Method – Bank or online
- Register and Verify – Provide KYC documents
- Input Recipient Details – Name, account number, SWIFT code
- State the Purpose – Education, maintenance, investment, etc.
- Confirm and Pay – Using bank transfer, debit card, or UPI
- Receive Confirmation – Tracking details or receipt
Required Documents for International Money Transfers
You’ll need to provide:
- PAN card
- Valid passport
- Bank account details
- Proof of remittance purpose (invoice, admission letter, etc.)
Documents are used to verify identity and comply with RBI regulations.
Time It Takes to Transfer Money from India to UAE
Depending on the method:
- Bank transfers: 1–3 working days
- Online services: Minutes to 1 day
- Cash pickups: Same day (via Western Union, etc.)
Daily and Annual Transfer Limits Imposed by Indian Banks
Under LRS:
- Up to USD 250,000 per financial year is allowed
- No daily cap, but banks may impose internal limits
- If exceeding limits, prior approval from RBI is required
Best Time to Send Money Based on Currency Value
Keep an eye on:
- INR-AED exchange trends
- Global economic events like oil prices or US Fed changes
Apps like Wise and Instarem offer exchange rate alerts to help you time your transfer for better value.
Avoiding Scams and Ensuring Safe Transactions
Use only:
- RBI-licensed providers
- Encrypted platforms
- Verified recipient details
Avoid sending through unregulated hawala or informal channels, which are illegal.
Benefits of Using Authorized Channels for Money Transfers
Using formal channels ensures:
- Legal compliance
- Transparency in transaction
- Eligibility for dispute resolution
Your transfer is recorded, trackable, and secure.
Can NRIs Send Money from India to UAE?
NRIs (Non-Resident Indians) cannot remit funds from NRE/NRO accounts to UAE directly, but they can:
- Use their Indian accounts if they maintain resident status
- Ask resident family members to make transfers on their behalf
It’s best to speak to a financial advisor or your bank.
Tax Implications of Sending Money Abroad
In India, under Section 206C(1G):
- A Tax Collected at Source (TCS) may apply if total remittance exceeds ₹7 lakh in a financial year
- 5% TCS applies beyond the limit (except for education and medical expenses)
Also, declaring purpose of transfer is mandatory.
Comparison: Banks vs Fintech for Sending Money to UAE
| Feature | Banks | Fintech Platforms |
| Speed | 2–3 days | Same day or instant |
| Cost | Higher | Lower |
| Exchange Rates | Less competitive | Mid-market |
| Security | High | High (licensed) |
| Convenience | Physical branches | Mobile & online |
Using Forex Cards as an Alternative
You can load INR or AED on a forex card and use it:
- For business trips
- While traveling to the UAE
- For ATM withdrawals
It’s not a remittance but works well for personal spending abroad.
Sending Money to UAE for Business Purposes
For business-related transactions:
- Use FIRC (Foreign Inward Remittance Certificate)
- Maintain invoice records
- Send through corporate bank accounts
It’s important to differentiate personal and business transfers.
Is There a Difference Between Personal and Commercial Transfers?
Yes. Personal transfers cover:
- Family support
- Gifts
- Travel expenses
Commercial transfers are tied to:
- Business payments
- Import/export dealings
- Investments
Different documents and permissions apply.
How to Track Your International Money Transfer
Once you complete the transfer, you’ll get:
- A transaction reference number
- Email or SMS alerts
- In-app tracking if using a remittance app
This helps you confirm receipt by the beneficiary.
What to Do If Your Money Transfer Fails or Delays
Steps to take:
- Contact the customer support of the service
- Provide reference number and proof of payment
- Request refund or re-processing
Most services resolve issues within 48–72 hours.
Top Mistakes to Avoid When Sending Money Abroad
- Choosing non-authorized agents
- Not checking exchange rate margins
- Entering wrong recipient details
- Ignoring tax implications
Avoiding these helps you save time, money, and legal hassles.
Legal Penalties for Using Illegal Hawala Channels
Using hawala or informal methods is a criminal offense. You may face:
- Heavy fines
- Investigation by ED (Enforcement Directorate)
- Freezing of accounts
Always use RBI-approved channels for remittance.
Also Read: Business Setup in Dubai, UAE
Conclusion
Whether you’re transferring funds to support family, pay business partners, or cover expenses, understanding how to send money from India to the UAE the right way is essential. Choose platforms that are authorized, cost-effective, and fast. Check all fees, limits, and documents before making a move.
For high-value or regular transfers, consult with financial advisors or remittance consultants to stay compliant with Indian tax laws and FEMA guidelines.
FAQs
What is the cheapest way to send money from India to UAE?
Fintech platforms like Wise, Remitly, and Instarem often offer lower fees and better exchange rates than banks.
How long does it take to transfer money to UAE from India?
It usually takes 1 to 3 working days depending on the service provider.
Are there any taxes for sending money from India to UAE?
Yes. TCS (Tax Collected at Source) applies if total transfers exceed ₹7 lakh in a financial year.
Can I send money to UAE for business purposes?
Yes, you can. You’ll need to provide commercial invoices and use authorized banking channels.
Is using hawala to send money to UAE illegal?
Yes, hawala is illegal and punishable under Indian foreign exchange laws.
