Sending Money from the UK to India without a Bank Account: Everything You Need To Know
Sending Money from the UK to India without a Bank Account: Everything You Need To Know
India is one of the fastest-growing economies in the world. Its rising middle class and the digital revolution are fueling this growth. With increasing demand from Indians, more and more companies are offering services to send money from India to another Indian or abroad. If you live in the UK and want to send money to India, you’ll need a bank account and a virtual or real bank account in India. You also need to know how you can transfer money from the UK to India without opening a bank account in either country. Keep reading…
Can you transfer money from the UK to India without opening a bank account?
When you want to send money from the UK to India, you will have a couple of options. The easiest yet riskiest option is to visit a nearby Indian bank and ask for a cashier’s cheque. However, this is very cumbersome and is not recommended for several reasons.
sFirst and foremost, the sender may be held liable for any losses incurred if the cashier’s cheque is reported lost or stolen. With the rise in digital transactions and the ease of online money transfer, sending money from the UK to India without opening a bank account is now possible. You can use a digital wallet, an online money transfer service, or a peer-to-peer (P2P) service.
Types of accounts available in India for receiving funds
Many types of bank accounts in India are available for non-resident Indians (NRIs). Undisputed funds, an unallocated deposit account, are the most popular among NRIs. With undisputed funds, you can make unlimited domestic and international payments, including sending your children to school, buying property, or sending money to your family abroad. IDBI Bank, one of India’s largest public sector banks, offers a non-resident deposit account (RCA) that allows NRIs to get a fixed interest rate on their savings. In addition to a regular savings account, many banks in India also offer a non-resident equity fund (RCA) account that allows NRIs to invest in Indian companies as equity.
Can you send money to an Indian bank account?
Indian banks have a tie-up with many money transfer companies that offer money transfer services to India. In many cases, you can even set up a recurring money transfer to a particular bank account in your name. You can also use a money transfer service to send money to an Indian bank account.
However, some restrictions exist when transferring money to an Indian bank account. The sender should have an Indian bank account, while the recipient can have an Indian bank account or a virtual one. The recipient’s bank account should be active to prevent dormant account funding, which causes delays. If the recipient has a virtual account, the sender can withdraw money from that account.
Disadvantages of sending money to Indian bank accounts
There are several disadvantages if you send money from the UK to an Indian bank account. First, you must pay a high fee to send money to India from the UK. And even if you use a low-cost service, the transfer takes a long time. The recipient might also have to pay a high fee to receive the money. If you use an online money transfer service, the money will be taxed when it arrives in India (20%). If you choose a person in India to receive the money, the recipient will also have to pay taxes (2-5% depending on which state the person lives in).
Why use an online money transfer service for sending money from the UK to India?
Online money transfer is a safe and easy way to send money between bank accounts. The best part is that you don’t have to worry about finding the recipient’s bank account or sending them a money transfer request. You can log into the website of the money transfer service, enter the recipient’s details and send the money.
If the recipient doesn’t have an online banking account, the money transfer service will help the recipient withdraw the money from an existing bank account as soon as possible. Some online money transfer services allow you to create a free account and send money to a friend or relative without providing personal information. The service will only request information like the amount, recipient’s name, and city.
Others allow you to create a free virtual or a real bank account in India. This will help you send and receive money from home more easily.
How to send money to someone without a bank account
Send money through an online money transfer service to a virtual or a real bank account in India without knowing the recipient’s details. Once the money is in your virtual or real account in India, you can withdraw it and use it to send money to the receiver. You can then change the description of the account or withdraw the cash from the account by visiting any branch of any Indian bank and telling them that you want to withdraw the cash.
Final Thoughts
A bank account in India is important for you to send money from the UK to India. However, it is not necessary to open a bank account in India. Many online money transfer services allow you to send money without opening an account in India. The transaction fees charged by these companies are comparatively less. Using these services, you can easily send money without opening an account in India.
