Send Money to Canada from India | Transfer Money to Canada

Being one of the homes of best universities as well as one of safest countries for international students, Canada is sought to be one of the top destinations by Indian students. India was first among the top 10-origin countries for study permit holders in 2022 in Canada, with 319,000 students (Economic Times, 2023). Sending money to Canada from India for education can be a complex process, but with the right information, it can be made seamless and efficient. Whether you're paying tuition fees, covering admission expenses, or any other educational needs, choosing the right method is crucial. In this blog, we'll explore the best ways to send money to Canada from India, focusing on various services, their associated fees.

University Rankings

University	QS World University Ranking 2024
McGill University	31
University of Toronto	34
University of British Columbia	47
University of Alberta	110
University of Waterloo	154

Understanding the basics

When sending money to Canada, the most common reasons for students include tuition fees, accommodation costs, and daily living expenses. It's essential to understand the different methods available and choose the one that offers the best combination of low fees, favorable exchange rates, and reliability.

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Methods to Send Money to Canada

1. Bank Transfers

Bank transfers are a traditional method, often used for their perceived reliability. However, they come with several drawbacks. Compared to all methods banks tend to levy high fees. Banks typically charge high transfer fees, including a fixed fee and a high exchange rate margin. These costs can add up, especially for large amounts. They can have moderate to long processing times, with taking up to 2-5 business days, which might not be suitable if you're running on deadlines & require urgent payment.

2. Online Money Transfer Services

Online platforms have gained popularity due to their convenience and speed. However, caution using such portals is necessary. Always examine the authentication of such websites for they can be prone to scams & frauds. Ensure the platform is legitimate and secure, and duly authorised by the Reserve Bank of India. Check reviews and ratings before using any online service. There remains variable fees. While they might offer lower fees than banks, the processing fees can vary, and additional charges may apply. Always compare exchange rates offered by these platforms to ensure you're getting a fair deal.

3. Foreign Exchange Providers

Foreign exchange providers authorized by the Reserve Bank of India (RBI) including money changers offer specialized services for sending money to Canada from India, especially for students. These providers have competitive fees and they offer lower fees compared to banks and many online services. The cost-saving can be significant, particularly for regular transfers.

There remains better exchange rates in case of money changers. Authorized money changers provide competitive exchange rates, ensuring more of your money reaches the recipient. Transfers are usually processed quickly, often within 1-3 business days providing high speed. However always use RBI-authorized money changers to ensure the safety and legality of your transactions. Supreme Forex is one of such Foreign Exchange Providers which covers all such aspects discussed here.

Transfer Limits

Be aware of if there are any transfer limits imposed by your bank or the transfer service. The total amount of foreign exchange purchased from or remitted through all sources in India during a financial year should be within the cumulative limit of USD 2,50,000.

Once a remittance is made for an amount up to USD 2,50,000 during the financial year, a resident individual would not be eligible to make any further remittances under this scheme, even if the proceeds of the investments have been brought back into the country.

More to it is that many of the platforms have maximum and minimum transfer amounts,however since there are no restrictions on the frequency of remittances under LRS as long as you adhere to the limit, you can use platforms many times but each transaction carries additional fees. (RBI, 2023).

Regulatory Compliance:

Ensure that the transfer service complies with international and local regulations. In India, the Liberalised Remittance Scheme (LRS) allows residents to remit up to a particular amount per financial year for educational needs. There is a new TCS rate with effect from 1 October 2023, the threshold limit are given as below distinguished as per the type of Remittance Abroad (Indian Finance Ministry, 2023):

For the purpose of education, if the amount being remitted is from a loan obtained from any specified institution

Threshold limit - NIL upto Rs. 7 lakh. 0.5% of the amount or the aggregate amount over Rs. 7 lakh per financial year

For the purpose of education, other than above

Threshold limit - NIL upto Rs. 7 lakh 5% of the amount or the aggregate amount over ₹7 lakh per financial year

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Fees to take in consideration

~ Exchange Rates: Even a slight difference in exchange rates can impact the amount received in Canada. Forex providers often offer better rates, and give the opportunity to compare and make an informed decision. As per Google Finance, while the CAD/INR rate stood at 62.31 on Jan 01, 2024 this rate has appreciated to 61.15 as on 26 Jun at 07:38:00 UTC . It's important that your money changer provides transparent details regarding rates so that you can choose the best price.

Continously changing exchange rate on different screens

~ Markup Fees: A markup to the exchange rate when converting currencies, can increase the overall cost of the transaction. To minimize this impact, it's important to stay informed about exchange rates and compare offerings from different institution.

~ Goods and Services Tax (GST): All foreign exchange transactions are subject to the levy of Goods and Services Tax (GST) in India. This tax is payable in addition to the other charges mentioned above.

~ SWIFT fees/Bank fees: For wire transfers or bank transfers conducted through the SWIFT network, there may be fees charged by your bank or intermediary banks involved in the transfer process. These fees typically range from INR 200 to INR 400.

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Tips for Sending Money to Canada

1. Plan Ahead

If you know the dates when tuition fees or other expenses are due, plan your transfers in advance. This can help you take advantage of favorable exchange rates and avoid last-minute rush fees. Click here to get ahead of the curve by knowing the right time to begin canadian university applications.

2. Compare Providers

Before making a transfer, compare the fees and exchange rates offered by different methods. This comparison can save you a significant amount of money. Foreign exchange providers often come out on top in these comparisons due to their competitive rates and lower fees.

3. Maintain Documents

When buying or selling forex through your bank or a chosen money changer, you will be required to provide KYC documentation. It is under RBI regulations, which must be followed by all banks and approved exchange houses. So sending money to Canada for education purposes, you usually need the following documents:

A valid photo ID (passport, Aadhaar card, or driving license)
Proof of address (utility bill, bank statement, or rental agreement)
The recipient’s bank details (account number, SWIFT/BIC code, IBAN, etc.)
Admission letter from the Canada university
Tuition fee invoice or accommodation invoice
Any other document specified by Money Changer

4. Use RBI-Authorized Money Changers

Always ensure that the provider you choose is authorized by the RBI. This authorization guarantees that the provider complies with all necessary regulations, ensuring your money is safe and the transaction is legal.

5. Monitor Exchange Rates

Exchange rates can fluctuate. Keep an eye on the rates and try to make your transfer when the rates are most favorable. Many providers offer rate alerts to notify you when the rates reach your desired level.

6. Understand the Transfer Process

Make sure you understand the transfer process of your chosen provider. This includes knowing how long the transfer will take, what information you need to provide, and how you can track the progress of your transfer. Always clear your assumptions & doubts before proceeding with the payments.

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Specific Considerations for Canada

Sending money to Canada has its own set of considerations. Here are a few things to keep in mind:

Cost of Living: Canada has a relatively high cost of living and requires a certain cost-of-living financial requirement for the same (Economics Times, 2023). Ensure that the method you choose allows you to send money efficiently to cover monthly expenses.

Currency Regulations: Be aware of any regulations regarding foreign currency transfers to Canada. Although Canada does not place any limits on how much money can be transferred to or from the country, international transactions of $10,000 or more are tracked by the Canadian government to prevent money laundering, terror financing, and other financial crimes (RBC Royal Bank, 2024). Using an RBI-authorized money changer can help navigate these regulations smoothly.

A representation of growing money with coins increasing sideby plant

Here's how we can simplify this process for you

With over 28 years of expertise, we're highly trusted to handle remittance efficiently. Our offline branches in key locations such as Delhi, Ahmedabad, Hyderabad, and Kolkata ensure accessibility. Adhering to RBI guidelines and regulations, we offer some of the best exchange rates in the market. You can choose between home collection or visiting a branch for KYC procedures. Our experienced currency experts are always ready to provide personalized guidance throughout the process.

Conclusion

Sending money to Canada from India for education doesn't have to be a daunting task. By understanding the different methods available, being aware of the fees involved, and prioritizing the use of RBI-authorized foreign exchange providers, you can ensure a seamless and cost-effective transfer process.

Whereas Bank and online money transfer services are popular, foreign exchange providers often offer the best combination of low fees and competitive exchange rates. Always verify the authenticity of online platforms and take advantage of the specialized services offered by authorized money changers to make your transfers safe, efficient, and economical. By following these tips and choosing the right provider, you can focus on your studies in Canada without worrying about the hassle and cost of sending money from India.

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