Question 1

What is the mid-market exchange rate?

Accepted Answer

The mid-market rate is the midpoint between buy and sell prices on global currency markets. It is the rate banks use when trading with each other. Any rate worse than this includes a markup, which is essentially a hidden fee. Google shows the mid-market rate when you search 'USD to INR'.

Question 2

Why does my bank give a worse exchange rate than Wise?

Accepted Answer

Banks make significant profit from foreign exchange markup, typically 2-5% over the mid-market rate. On a $5,000 transfer, a 3% markup means $150 goes to the bank as profit. Wise disrupted this by using the mid-market rate with zero markup, charging only a small transparent fee instead.

Question 3

Is Wise safe for sending money to India?

Accepted Answer

Wise (formerly TransferWise) is regulated by FinCEN in the US and the FCA in the UK. It is publicly traded on the London Stock Exchange (LSE: WISE). Over 16 million people use Wise, processing more than $100 billion annually. Your money is held in regulated, safeguarded accounts.

Question 4

How long does a USD to INR transfer take?

Accepted Answer

Transfer times vary by provider: Wise takes 1-2 business days, Remitly offers instant delivery via UPI (at higher markup), ICICI Money2India takes 1-2 days, and bank wire transfers take 3-5 business days. Faster options generally cost more in fees or exchange rate markup.

Question 5

What is the maximum amount I can send to India?

Accepted Answer

Under the RBI's Liberalised Remittance Scheme (LRS), there is no upper limit on inward remittances to India. The LRS limit of $250,000/year applies to outward remittances from India. However, individual providers have per-transaction limits: Wise up to $1,000,000, Remitly up to $30,000, ICICI up to $25,000.

Question 6

Should I send money to my NRE or NRO account?

Accepted Answer

If you are sending your foreign salary or savings, send to NRE. Interest on NRE accounts is tax-free in India (Section 10(4)(ii) of the Income Tax Act) and fully repatriable. NRO accounts are for Indian income (rent, dividends). Interest on NRO is taxed at 31.2% (TDS under Section 195). Use our NRE vs NRO Advisor for a personalized recommendation.

Question 7

Do I need to pay tax on money I send to India?

Accepted Answer

No, sending your own money from the US to India is not a taxable event in either country. The money was already taxed as income in the US. However, interest earned on the money in India may be taxable depending on the account type (NRE is tax-free, NRO is taxable). Under the India-US DTAA (Article 11), you can claim a Foreign Tax Credit (Form 1116) for taxes paid in India.

Question 8

What fees does each provider charge?

Accepted Answer

Wise charges a flat fee of approximately $4-6 per transfer with zero exchange rate markup. Remitly charges $3.99 with a 0.5-1.5% rate markup. ICICI Money2India has no transfer fee but builds a 1-2% markup into the rate. Western Union charges $5 plus a 2-4% markup. Bank wires charge $25-50 plus a 2-5% markup.

Question 9

How often do exchange rates change?

Accepted Answer

The USD/INR rate changes continuously during forex market hours (24 hours on weekdays). The rates shown in this tool are refreshed hourly from the mid-market rate. Provider-specific rates may differ and change at different intervals. For large transfers ($10,000+), even a small rate movement matters, so always confirm the final rate on the provider's site before transferring.

Question 10

Can I lock in an exchange rate for a future transfer?

Accepted Answer

Some providers offer rate locking. Wise allows you to set up rate alerts and lock a rate for a limited time when you initiate a transfer. Remitly sometimes offers guaranteed rates for express transfers. Banks may offer forward contracts for very large amounts. For most NRIs, the rate difference between providers matters more than timing the market.

Live Remittance Rate Tracker: Frequently Asked Questions