Send Money from India to UAE – INR to AED Remittance Guide 2026
While the UAE-to-India corridor is the world's largest remittance route (Indian workers in UAE sending money home), the reverse direction — sending INR from India to AED in UAE bank accounts — is also increasingly common. Professionals relocating to the UAE, families supporting students, businesses making trade payments, and Indians investing in UAE real estate all need to send money from India to the UAE. This guide covers everything you need to know: regulations, costs, best services, and the step-by-step process.
Who Sends Money from India to the UAE?
- Professionals relocating for work: Need initial funds in UAE bank accounts before first salary arrives — covering rent deposits, apartment setup, and living costs.
- Families of UAE residents: Sometimes parents or family in India send money to support children who have just moved to the UAE and haven't yet received their first paycheck.
- Indian businesses: Companies importing goods from UAE suppliers or paying UAE-based service providers need regular outward remittances.
- Students: Indian students at UAE universities need tuition fees funded from India under LRS.
- Property buyers: Indians investing in UAE real estate — which is open to foreign ownership in many freehold zones — need to remit purchase funds from India.
LRS Framework: India's Rules for Sending Money Abroad
All outward remittances from India — regardless of destination — are governed by the Liberalised Remittance Scheme (LRS), administered by the Reserve Bank of India. Understanding LRS is essential before initiating any transfer to a UAE bank account.
LRS Annual Limit
Each resident Indian individual can remit up to USD 250,000 per financial year (April 1 to March 31) for permitted purposes. This limit is cumulative across all transfers during the year. Amounts above this limit require prior RBI approval.
Permitted Purposes for Remittance to UAE
- Maintenance of close relatives living in UAE
- Education fees at UAE institutions
- Travel and tourism expenses
- Business and trade payments (with proper documentation)
- Investment in UAE property or securities (subject to specific conditions)
- Emigration expenses when moving permanently to UAE
Tax Collected at Source (TCS) Rules
The Indian government collects TCS on LRS remittances above a certain threshold. Current TCS rates as of 2024–2025:
| Purpose | TCS Rate | Threshold |
|---|
| Education (funded by a declared loan) | 0.5% | Above ₹7 lakh/year |
| Education (own funds) or Medical treatment | 5% | Above ₹7 lakh/year |
| Maintenance of relatives, gifts, travel, property purchase, investment | 20% | Above ₹7 lakh/year |
⚠️ TCS is NOT a final tax. The amount deducted is credited to your PAN and can be claimed as a tax credit when you file your annual Income Tax Return (ITR). Always keep bank receipts showing TCS deducted. Consult a CA for your specific situation.
Documents Required for Sending Money to UAE
- PAN card — mandatory for all LRS remittances without exception
- Valid identity proof — Aadhaar, Passport, or Voter ID
- Form A2 — purpose declaration form, provided and completed through your bank or transfer platform
- Purpose-specific documents — e.g., employment offer letter if relocating for work; university fee demand note for education; property sale agreement for real estate purchase
- UAE recipient bank details — full IBAN (23 characters, starts with AE), SWIFT/BIC code, and recipient's full name as registered with their UAE bank
Best Services for INR to AED Transfers from India
| Service | Exchange Rate | Transfer Time | Fees |
|---|
| Wise India | Near mid-market (best available) | Same day to 2 days | Small % fee + flat fee, fully disclosed |
| Instarem | Competitive | 1–2 business days | Low flat fee |
| BookMyForex | Good — better than banks | 1–3 business days | Nominal fees |
| HDFC ForexPlus / ICICI Money2World | Bank rate — 2–3% margin | 2–4 business days | ₹500–₹1,500 flat + margin |
| SBI Global Link | Bank rate — 2–3.5% margin | 2–5 business days | ₹500–₹1,000 flat + margin |
✅ Best practice for large transfers: For remittances above ₹2 lakh, compare at least two providers. On a ₹5 lakh transfer, the difference between a 0.5% rate (Wise) and a 3% rate (bank) is ₹12,500 saved. That's worth 5 minutes of comparison shopping.
Step-by-Step: How to Send Money from India to UAE
- Confirm the purpose is permitted under LRS and gather the required supporting documents
- Obtain the UAE recipient's IBAN — ask them to provide it in writing from their bank statement or UAE bank app
- Compare rates from Wise, Instarem, and your bank on the day of transfer — rates change daily
- Initiate the transfer through your chosen platform, submitting KYC documents and Form A2 purpose declaration
- Complete the transfer and note the transaction reference number for tracking
- Confirm receipt with the UAE beneficiary — most UAE banks send an SMS notification when funds arrive
- Save all receipts including TCS deduction certificate for your ITR filing
UAE Banking: What Senders Need to Know
UAE banks process incoming international SWIFT transfers during UAE banking hours (Sunday–Thursday, 8:00 AM–3:00 PM UAE time). Transfers initiated on Thursday after banking hours, Friday, or Saturday (UAE weekend) will be processed on the following Sunday. Allow an additional business day if your transfer crosses a UAE public holiday.
UAE banks may charge a receiving fee of AED 25–75 for incoming international wire transfers. This is deducted by the UAE bank from the received amount. Factor this into your transfer amount if you need the recipient to receive a precise figure.
How long does an INR to AED bank transfer take?
With Wise or Instarem, transfers typically arrive within 24–48 hours. SWIFT bank transfers can take 2–5 business days depending on correspondent bank routing. Transfers over weekends or UAE holidays take longer.
Is there a minimum transfer amount from India to UAE?
Most banks have a minimum of ₹10,000–₹25,000 per transfer. Wise and digital platforms accept smaller amounts (from ₹5,000 or even less). There is no regulatory minimum under LRS — only the ₹7 lakh annual threshold above which TCS begins to apply.
Can I send money to a UAE account that is not in my name?
Yes — you can send to a third party (family member, employer, university) in the UAE. You need their IBAN and must declare the purpose correctly on Form A2. Transfers for maintenance of close relatives, education payments, and business payments to UAE parties are all permitted.
Disclaimer: LRS rules, TCS rates, and limits are subject to change. This guide is for educational reference only. Always verify current requirements with your bank or a qualified financial advisor before initiating any international transfer.