What are the Methods of Remittance?

I agree that the direction of the remittance is important.

If you're transferring money into India, you're generally dealing with inward remittance. If you're transferring funds from India to another country, you're dealing with outward remittance.

For outward transfers, residents may need to consider the RBI's Liberalised Remittance Scheme (LRS) and applicable tax/TCS requirements. NRIs can have different rules depending on the account and source of funds.

Another point is that "remittance" doesn't automatically mean "taxable income." If someone sends money to their own Indian account from their overseas savings, the transfer itself isn't necessarily income just because money entered India.

However, the underlying source of the funds can matter for tax and regulatory purposes.

For substantial transfers, I'd keep bank statements, transfer confirmations and documents showing the source and purpose of the funds.

There are quite a few options now.

My usual methods are:

1. Bank-to-bank international wire transfer
2. Online remittance service
3. NRE/NRO account transfer, depending on where the funds are coming from and the purpose
4. Demand draft or other banking instruments in situations where a recipient specifically requires one

For a normal transfer from the US to India, I generally initiate the transfer through my US bank or a regulated remittance provider and send it to my Indian account.

The bank may ask for information such as the beneficiary's account number, IFSC, SWIFT details or the purpose of the remittance.

One thing I learned is that sending money to India and sending money out of India aren't necessarily governed by the same rules.

For example, repatriating money from an NRO account can involve different requirements and limits compared with bringing foreign earnings into an NRE account.

So I'd first decide the direction of the transfer and the source of funds.

For sending money to India, the most straightforward method I've used is an international bank transfer from my overseas bank account directly to my Indian bank account.

If you're an NRI, the destination account matters. For example, foreign earnings can generally be remitted to an NRE account if you're eligible, while an NRO account is commonly used for Indian-source income and other permitted transactions.

I’ve also used online remittance providers when sending smaller amounts because the exchange rate and total fee can sometimes be more competitive than my regular bank.

I wouldn't compare providers only on the advertised transfer fee, though. Check the actual INR amount the recipient will receive, because the exchange-rate margin can be more significant than the visible fee.

For larger transfers, I prefer dealing directly with the bank because there can be additional documentation or purpose-related questions.

I've used both banks and online remittance providers. For regular personal transfers, online services sometimes offered better exchange rates and lower fees. For high-value transfers or transactions involving investments or property, I preferred using my bank because they guided me through the documentation requirements.

I transferred property sale proceeds from my NRO account to Canada recently. Since it involved repatriation, I had to submit additional documents like Form 15CA, Form 15CB (where applicable), and tax-related paperwork. Once everything was verified, the bank completed the transfer without any issues.