How to Transfer Money from India to Canada: A Complete Guide

More Indians are now sending money to Canada for education, family support, investments, or business payments. But when you start the process, you quickly realise that international money transfers can feel confusing—mainly due to hidden charges, forex markups, documentation, and compliance under RBI rules.

To send money from India to Canada safely and cost-effectively, you need clarity on the right method, paperwork, and fees involved. This guide will help you make informed decisions and choose the best way to transfer funds without overspending or facing delays.

Understanding International Money Transfers from India to Canada

The demand for international transfers has grown as more Indians relocate to Canada for studies, work, and long-term settlement. Families often send funds to support students, cover living costs, or make tuition payments directly to foreign universities. However, sending money overseas is not just a bank transaction—it must follow RBI guidelines and the right documentation process.

Under the Liberalised Remittance Scheme, Indian residents can remit up to USD 250,000 in a financial year for permitted purposes. These rules fall under the Foreign Exchange Management Act (FEMA), which ensures that all international money transfers are genuine and fully traceable.

To stay compliant, you must choose a purpose that qualifies under LRS. Some of the common ones include:

• You can send money for tuition fees or other education-related costs directly to Canadian institutions.
• Funds may be sent for medical treatment, procedures, or healthcare expenses abroad.
• Emigration-related costs can be covered when relocating to Canada permanently.
• You can provide financial support to close relatives living in Canada under permitted categories.
• Remittances are allowed for gifts or donations, as long as they meet RBI guidelines.
• Money can also be used for business travel or investments when the required conditions are fulfilled.

Popular Ways to Transfer Money from India to Canada

You have multiple options to send money to Canada, but each comes with its own cost, speed, and paperwork. The right method depends on how much you’re sending, how quickly it needs to reach, and how much you’re willing to pay in fees and exchange rate differences.

Common methods you can use:

1. Bank Wire Transfers: Major Indian banks offer international remittance services that follow RBI guidelines. These transfers are considered reliable, especially for education, family support, or medical needs. However, they often involve fixed fees and a foreign exchange markup, which can make the total cost higher than expected.
2. Online Transfer Platforms: Digital platforms provide user-friendly alternatives with transparent pricing. They usually offer better exchange rates than banks and faster processing times. This makes them suitable for freelancers, students, and businesses that need quick and clear payment tracking.
3. Currency Brokers: If you’re sending a larger amount, currency brokers can sometimes provide a better deal. They may offer personalised support and more favourable rates, which is useful when every rupee counts. However, not all brokers are regulated, so due diligence is key.

1. Digital Wallets and Remittance Providers: Some apps and remittance service providers may offer benefits for specific countries or transfer types, but their fees and terms can vary. Always check if the provider is regulated and compare the final cost before sending money.

Comparison Table

Key Factors for Cost-Effective and Efficient Transfers

To transfer money from India to Canada smartly, you need to look beyond just the sender and receiver details. The cost, speed, and final amount received can change depending on your choice of bank or fintech platform. A clear understanding of the following factors can help you get better value on every international money transfer.

Important factors to compare before sending money:

• Exchange Rates: The INR to CAD exchange rate directly affects the final amount received in Canada. Try choosing providers who offer rates close to the real mid-market rate, as even a small difference can impact your total transfer value.
• Transfer Fees: Banks usually charge between ₹500 to ₹1,000 for each transfer, and in some cases, intermediary or recipient banks in Canada may deduct additional fees. Fintech platforms often offer lower charges and clearly show all fees upfront, which makes it easier to plan the total cost before sending money.
• Hidden Costs and Markups: Some providers promote “zero fees” but offer a weaker exchange rate to earn their margin. These hidden markups can cost more than the actual fee, so always check the effective rate and final credited amount before confirming the transaction.
• Speed of Transfer: Traditional bank transfers typically take 1–5 working days, which may not be ideal when the funds are needed quickly. In such cases, prefer online platforms that offer same-day or near-instant options.
• GST and TCS: GST applies to most international outward transfers. If your total remittances cross the RBI limit, Tax Collected at Source (TCS) is also charged. These taxes increase the total payable amount, so it’s smart to calculate them in advance before sending money from India to Canada.

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Regulatory Compliance and Required Documentation

Every international money transfer from India must follow RBI regulations. The process becomes smoother when the purpose of transfer is clearly declared, and the required documents are in place. Staying compliant helps avoid delays or any scrutiny during the transaction.

Key regulatory requirements to keep in mind:

• Liberalised Remittance Scheme Limits: Indian residents can send up to USD 250,000 per financial year (or its equivalent in CAD) for permitted transactions. If the transfer amount exceeds this limit, prior approval from the RBI is mandatory before the transaction can be processed.
• Required Documents:
  1. Valid Indian passport
  2. PAN card
  3. Address proof (such as Aadhaar card or utility bill)
  4. Purpose declaration for the remittance
  5. Recipient’s complete bank details, including SWIFT/BIC code
• Reporting Requirements: Banks and authorised dealers must report all international transfers to the RBI. This ensures transparency and regulatory compliance. You must provide correct information, including the purpose of the transfer and beneficiary details, to avoid delays or rejection of the request.
• NRI Considerations: NRIs using a Non-Resident Ordinary (NRO) account can remit up to USD 1 million per financial year. On the other hand, a Non-Resident External (NRE) account holds money earned outside India, and this amount can usually be transferred abroad without any limit, as it is fully repatriable under RBI rules.

Step-by-Step Guide to Initiating a Money Transfer to Canada

1. Choose Your Transfer Method: Start by selecting how you want to send the money—through a bank, an online transfer platform, or a currency broker. Compare their exchange rates, fees, transfer speed, and transparency before making a choice, as these factors determine how much the recipient will actually receive.
2. Register and Verify Your Account: If you opt for an online platform or fintech service, you’ll need to create an account and complete KYC verification. This typically involves submitting identity and address proof, as required under RBI guidelines, to ensure the transfer is fully compliant.

1. Enter Transfer Details: Once your account is verified, enter the amount you want to send in INR. The platform will automatically calculate how much the beneficiary will receive in CAD after applying the current exchange rate, service charges, and taxes, if applicable. This helps you understand the exact value of your international remittance before proceeding.
2. Provide Recipient Information: Next, add the recipient’s details carefully. This usually includes the full name as per their bank records, account number, bank address, and SWIFT/BIC code. Accuracy is crucial—any error can lead to delays, bounced transfers, or additional charges. Double-check every entry before submitting the form.
3. Fund Your Transfer: To initiate the transfer, pay using one of the accepted methods such as NEFT, RTGS, debit card, or credit card. The options available may vary depending on the platform or bank. For higher-value transfers, you may be asked to visit the bank branch or provide additional supporting documents to comply with LRS limits.
4. Confirm and Track: Before confirming, review all the details one final time. Once submitted, most services will issue a reference number or tracking ID. This allows you to track the transfer in real time until it reaches the recipient’s account in Canada. Some platforms also provide notifications or email updates for better transparency and peace of mind.

How Razorpay MoneySaver Export Account Simplifies International Payments

• Transparent, Cost-effective Transfers: Instead of relying on traditional banks with hidden fees and high mark-ups, Razorpay gives you live exchange rates and full visibility of charges upfront. That means when you transfer money from India to Canada, you’ll know exactly how much arrives.
• Faster Settlement Times: Traditional bank wires often take up to 5 business days. With Razorpay, the process is optimised, and you can expect quicker settlement, reducing delays in sending money from India to Canada.
• Compliance Built-In: The platform integrates regulatory checks aligned with Reserve Bank of India rules. For transferring money from India to Canada, using a compliant provider reduces risk and simplifies documentation.
• Global Payout Capability: Your Canadian recipients can receive the money in their local banking system, helping you offer a seamless payment experience and enhance your reputation.

Conclusion

Sending money from India to Canada has become easier, but choosing the right method still makes all the difference. Comparing exchange rates, fees, and processing time can help you ensure that the recipient gets the maximum value. A little homework before sending the money can save both time and unnecessary costs.

Above all, compliance is key. Staying aligned with RBI’s LRS and FEMA rules keeps your transfer secure and hassle-free. The best approach is to choose a platform or bank that is transparent, reliable, and suited to your specific purpose—whether it’s education, family support, or business. With the right partner, your international transfer can be both simple and cost-effective.

FAQs

1. What is the best way to transfer money from India to Canada? 

The ideal method depends on your transfer amount, urgency, and budget. Online money transfer services usually provide faster processing and competitive exchange rates, while traditional bank wire transfers suit larger amounts but may take longer.

2. Are there limits on how much money can be sent from India to Canada?

Yes. Under the LRS, Indian residents can send up to USD 250,000 per financial year for permitted purposes. However, NRIs follow different limits depending on whether they use an NRO or NRE account.

3. What documents are required to send money from India to Canada?

You generally need documents such as ID and address proof, PAN details, the recipient’s bank information, and a declaration stating the purpose of the transfer.

4. How long does it take to transfer money from India to Canada?

Online platforms may complete transfers within a few hours, while bank wire transfers can take 1 to 5 business days, depending on the bank and intermediaries involved.

5. What are the common fees associated with transferring money from India to Canada?

Fees usually include transfer charges, exchange rate markups, and possible intermediary or beneficiary bank deductions. GST and TCS may also apply based on the transfer amount.