Maximise Your Remittance Value to India

When NRIs transfer money to India, the reasons often go beyond mere transactions. It could be to help parents manage household expenses, fund a sibling’s education, pay for a medical emergency, or contribute to building a home. In all these cases, it is natural to want to ensure that the maximum value reaches the recipient, without being eroded by poor exchange rates or hidden charges.

Many people focus only on the visible exchange rate, but that is only one part of the picture. The total value depends on fees, timing, transfer channels, and even your banking relationship. This article outlines what to actually keep in mind to get the best exchange rate and lower your overall remittance costs.

In this blog, we will cover:

Why choosing your primary bank matters in getting better exchange rates
How timing your remittance helps avoid hidden costs
Why comparing remittance channels can save more than you expect
The reality of exchange rate fluctuations and how to manage them
How your remittance patterns affect overall cost

Choose the Right Primary Bank

Using one primary bank for both your banking and your family’s banking helps in ways people don’t always consider. Beyond ease of managing accounts, the right bank relationship can get you preferential exchange rates, lower charges, faster credit to the beneficiary, and better support in case something goes wrong. For example, customers who are part of Kotak Mahindra Bank’s Privy League program get preferential rates on their remittances to India. These kinds of benefits add up over time, especially if you are sending money frequently or in significant amounts. And managing documentation and remittance records is easier when you’re not splitting transactions across multiple providers.

Avoid Weekends When Sending Money

Weekend and holiday remittances often come with hidden downsides. Since currency markets are closed, banks and platforms may apply static rates that are not as competitive. The transfer might not be processed until the next working day, but the rate applied will reflect the internal policies of the provider during market closure—not the live market. These rates are generally set conservatively. Planning your remittance during working days when markets are live can help you access better rates and faster processing.

Compare Different Channels

The channel you choose for sending money can have a significant impact on both costs and speed. Sending money from, say, the US to India, you might consider a traditional wire transfer through correspondent banks, or a direct service like Kotak’s Click2Remit (C2R). Wire transfers may involve charges from intermediary banks that reduce the amount received. Click2Remit offers competitive rates and clear fee structures, with no additional hidden charges. The point isn’t that one channel is always better than another—it’s that comparing channels for each transfer can help you avoid unnecessary costs.

Be Mindful of Exchange Rate Fluctuations

Exchange rates can shift due to a wide range of factors—economic data releases, central bank decisions, geopolitical events. Timing transfers to get a better rate is difficult because such movements are not easy to predict, and speculation can backfire. A more sensible approach is to use a trusted provider that offers transparent rates and, where possible, tools like rate alerts. With Kotak Mahindra Bank’s remittance services, customers can monitor rates through their banking portal and act when the rate suits their needs, rather than chasing speculative gains.

Track Your Remittance Patterns

Many people send small sums multiple times, thinking of convenience or immediate need, but this can add up in fees and weaker rates. Providers often have a flat fee per transaction or offer better rates for larger amounts. Consolidating transfers when possible—sending larger amounts less frequently—can reduce costs and sometimes give access to better rates. Reviewing your remittance patterns helps identify where you might save.

Conclusion

Getting the best exchange rate for remittance to India isn’t about chasing the highest advertised rate. It’s about planning your transfer thoughtfully—choosing the right bank, the right channel, the right time, and the right amount. Kotak Mahindra Bank, through its Privy League and services like Click2Remit, offers customers the benefit of preferential rates, transparent pricing, and reliable processing. By paying attention to these factors, you can ensure more of your hard-earned money reaches its destination, where it’s needed most.

FAQs

What information do I need to send money to India?

You’ll need your full name and address, the beneficiary’s name and bank account details (including SWIFT code if using a wire transfer), the amount, and purpose of the transfer.

Are remittances to India taxed?

NRIs don’t pay tax in India on money sent home. However, you should check for any remittance-related taxes in the country you’re remitting from.

Why do transfers sometimes get delayed?

Delays can happen due to incomplete beneficiary info, bank holidays, compliance checks, or technical issues.

Is Click2Remit better than a wire transfer?

It depends on your priorities. Click2Remit generally offers competitive rates and faster credit without intermediary bank deductions, whereas wire transfers may involve additional correspondent bank charges.

This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.