How can NRIs invest in India and send money to their families?

Many Non-Resident Indians (NRIs) settled in the United Arab Emirates (UAE), United States of America (USA), United Kingdom (UK), and other countries across the world, wish to send back money home to their families in India. A huge chunk of the NRI population has been sending in money to their dependents. On the other hand, there are also many attractive investment options for NRIs in India. In fact, according to a World Bank report, India is one among the largest recipients of foreign remittances in the world.

Take UAE NRI Kumar for example. He sends home money every month to his wife and children, who solely depend on his income for their livelihood. He remits money every month through a money transfer company. All NRIs can send money to all major banks in India. This can be done easily through National Electronic Funds Transfer (NEFT) to any bank that is part of the NEFT network in India. One can also send money directly to all major banks by providing the bank name, account number, and IFSC code. These are all traditional methods of sending money.

Apart from these tried and tested ways of sending money, NRIs can also explore new and innovative ways of sending money back home. In this article, we will explore some of the most popular methods.

Meanwhile, let us not forget that there are many lucrative investment options for Non-Resident Indians (NRIs) in India. Some of the investment schemes also come with an added tax advantage. Non-Resident Ordinary (NRO) accounts and Foreign Currency Non-Repatriable (FCNR) accounts are usually exempt from tax and offer attractive rates of Interest.

Innovative money remitting options for NRIs

Apps: There are numerous apps that make money transfer hassle-free for NRIs across the world. All smartphone users, both Android and iPhone users can download these types of apps to send money at a much faster pace. With this, the sender can easily keep a track of the status of the transaction. This is a very safe, reliable and cost-effective method. It also comparatively much more convenient to transfer money at the click of a button through this channel. In most cases, after one downloads the app and makes the fund transfer, a certain transaction number will be sent to the payee. The payee will have to provide this number as an evidence to withdraw the cash. There are no charges for downloading the app but a transaction fee may be levied for the service.

How to transfer money through an app

Step 1: Download the respective app

Step 2: Create a login ID and password

Step 3: Include banks details

Step 4: Make the transfer

Instant remit facility

With the changing times, money transfer companies have no choice but to cope up. Even traditional companies are making changes to allow faster transfer of funds. Transactions can be made instantly on a one-on-one basis without any hassle through these channels. This method is ideal for those who are reluctant to try new methods and want to still do it the traditional way. For such transfers, the customer will have to pay a transaction fee. All other charges such as exchange rates, service charges etc, may be levied for the purpose.

Mobile transfer

One of the other methods of transferring money is through mobile-based transfer services. Many banks, mobile operators and money transfer companies have tied up in the recent times to provide such services. These services are carried out through codes. For example, if you want to send some money, visit the nearest money transfer branch that offers this service. Here, one can obtain a code and the same code will be sent to the payee. Once the payee receives the code on his/her mobile number, he/she can go to the nearest ATM and make a withdrawal using the code. This is a very safe and reliable option. A certain transaction fee will be charged for this service. The amount of fee levied depends on the country from which the money is being remitted.

Remit cards

A remit card is like a debit card that can be charged with money at any point of time. In this case, the NRI can recharge the card at regular intervals and the payee can use the card as and when required. The card can be maintained in Indian currency. It is very easy to apply for the card and it can be done online without any hassle. There are many banks that offer this facility. The card can also be used in ATMs to withdraw money and can also be used at various retail outlets. There is only a processing charge that is levied on this card.

Best investment schemes for NRIs in India

  • NRO accounts: One can open NRO savings accounts, recurring deposits or fixed deposits. Many banks provide competitive rates of interest on these types of investments schemes. This helps the investor park his/her funds in the home country and also earn an interest on the same without losing out money on tax. With this, one can also avail the benefit of free money transfer.

  • NRE accounts: With an NRE account, an NRI can hold and maintain foreign currency funds in all major Indian banks. In most cases, there is no need to pay any tax in India on the interest earned on these deposits. One can open recurring deposits and fixed deposits too.

  • FCNR accounts: FCNR accounts are nothing but term deposits that are maintained in foreign currencies. This is also a very wise investment option for NRIs.


On the whole, there are a number of options available for NRIs to both invest and send money to India. With the proliferation of internet and mobile services, it is possible to make investments in a matter of minutes, at the click of a button. However, there are certain rules and norms that NRIs have to specifically follow before making the plunge investment wise. For example, NRIs cannot directly trade in the stock market. They can only operate through an agent or broker. It is always wise to consult a lawyer and a financial expert before making any investments.

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