How to Send Money to Australia from India: Step by Step Guide
Australia is a popular destination for Indian students due to its high-quality education system, diverse culture, and world-renowned universities such as the University of Melbourne, Australian National University, and the University of Sydney. At a record high, more than 700,000 international students are studying in Australia as per April, 2024 (ICEF, Monitor, 2024). Seven of Australian universities are in the top hundred universities of the world (Y-axis, 2024) a mentioned below:
These institutions offer a range of courses, attracting thousands of Indian students each year. If you too are considering your options to study in Australia’s best universities, here are the best ways to send money to Australia from India to ensure that the process is smooth, cost-effective, and compliant with RBI guidelines. The different expenses/fees that may require of sending money to Australia can be as follows:
Tuition Fees: Paying for courses and academic programs.
Living Expenses: Covering costs for accommodation, food, and other daily needs.
Miscellaneous Fees: Including library fees, lab fees, and other administrative charges.
This guide provides a detailed overview of the various methods available, focusing on the needs of students and the requirements of Australian universities.
Understanding Legalities
The Reserve Bank of India (RBI) regulates the process of sending money abroad, ensuring all transactions are legal and monitored. As a student or a parent, it’s essential to comply with these guidelines to avoid any legal complications. Regulations or requirements set by the Reserve Bank of India (RBI) or Australian authorities for sending money between the two countries can vary with dates as per their policy and economical health. This could include limits on the amount that can be transferred or documentation needed for the transaction as well as change of rates of TCS. From October 1, 2023, tax will apply to all forex remittance transactions under the Liberalised Remittance Scheme (LRS) that exceed INR 7 lakhs in a financial year. (Groww, 2023)
If aggregate foreign currency purchases under LRS for education (self-funded) purposes during the financial year exceed INR 7 lakhs, a Tax Collection at Source (TCS) rate of 5% will be applied to the amount exceeding INR 7 lakhs. For amounts remitted under LRS for education abroad through an education loan from a financial institution, the applicable TCS rate will be 0.5% on the amount exceeding INR 7 lakhs. (Economic Times, 2023).
Choosing the Right Transfer Method
There are several methods to send money to Australia, each with its own benefits and drawbacks. Here are some of the most popular options:
- Bank Wire Transfers:
This is one of the most traditional methods. Banks facilitate international wire transfers, allowing you to send money directly to an Australian bank account. Direct transfers are secure and reliable, but fees may vary. It's advisable to check with your bank for the most up-to-date rates and fees. Some of these banks include HDFC Bank, ICICI Bank, PNB & Axis Bank.
Cons: It requires that both sender and recipient hold active bank accounts. Banks can take a long time hence can have longer processing times.
- Online Money Transfer Services:
These services offer convenient and often cost-effective ways to send money abroad. These platforms provide competitive exchange rates and lower fees compared to traditional banks.
Cons: Require account setup, and may also have hidden processing fees and charges.
- Foreign Exchange (Forex) Services:
Specialized money changers, such as ourselves, can offer personalized services tailored to students. We ensure that the transfers comply with RBI guidelines and offer competitive exchange rates.
Pros: These are accessible without needing a bank account. Since money transfer is their business instead of banking, they usually have good customer support.
Comparing Fees and Exchange Rates
The cost of sending money abroad can vary significantly based on the method chosen. It’s crucial to compare:
Considering the factors like transfer speed and convenience when choosing a service. Some services offer instant transfers, while others may take a few business days.
~ Transfer Fees:
Banks typically charge higher fees for international transfers compared to online services. Banks charge a fixed fee plus a percentage of the transfer amount, while money transfer services may offer lower fees but slightly higher exchange rates. Some of the Bank rates are given below for your accessibility:
~ Exchange Rates:
Even a slight difference in exchange rates can impact the amount received in Australia. Online services and forex providers often offer better rates, and give the opportunity to compare and make an informed decision. To understand more about Australian Dollar, follow this link.
~ 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.
~ Receiving Fees:
Some of the Australian Banks may charge additional receiving charges. For eg. For credit of a Commonwealth Bank Australian dollar (AUD) account (regardless of currency), Commonwealth Bank of Australia charges up to $11.00 per transfer (CommBank, 2024). This differs from bank to bank, and you can check with your provider for the same.
~ 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.
Tracking the Transfer
Most transfer services provide a tracking number or a reference code. Use this to monitor the status of your transfer until it reaches the recipient’s account.
Tips for Sending Money to Australia
Plan Ahead:
Since most university payment systems are automated, initiating transfers well before payment deadlines can help you avoid any last-minute hassles. This ensures that your funds reach the university in time for fee payments.
Keep Records:
Keep a maintenance of a record of all transactions, This includes maintaining a record of receipts and tracking numbers provided by your money exchanger. This documentation can be useful for tracking your payments and resolving any issues that may arise during the transfer process.
Stay Informed:
Stay in touch with your money exchanger to ensure a smooth transfer experience. Double-check the accuracy of the recipient's information, including their bank account details and any specific instructions provided by the educational institution.
Customer Support:
Reliable customer support for money transfer services & proper conduct of customer service representatives for assistance is utmost required. Before proceeding with any transaction, clear your doubts. Supreme Forex
Additional Considerations:
For sending money to Australia from India from an NRE (Non-Resident External) Account, there is no specific limit imposed by the Reserve Bank of India (RBI). However, the individual banks may have their own limits and regulations regarding such transactions. With stringent RBI regulations, there is an emphasis on using compliant and secure transfer methods.
Currency Exchange Rates:
There is a high importance of monitoring exchange rates and choosing the right time to transfer money to get the best value. For example, the rate stated stood at xyz on date & time but hits down/rise at xyz on date & time.* Fluctuations in exchange rates can impact the amount received in Australia.
Conclusion
The Australian education system is witnessing a growing number of Indian enrollments, driven by the quality of education and career opportunities. Sending money to Australia from India is a significant task, especially for students and their families. By understanding the available transfer methods, comparing fees and exchange rates, and ensuring compliance with RBI guidelines, you can make the process smooth and efficient. For students heading to prestigious Australian universities, ensuring timely and cost-effective money transfers can make a significant difference in their educational journey. Utilizing the information provided in this guide one can make informed decisions and support their academic endeavors abroad. And in case you're still unsure whether to choose Australia, here is the list of top 10 countries for Indian students pursuing undergraduate degrees abroad.
Here's how we can simplify this process for you:
- We strive to offer the best exchange rate in the market. Our operations adhere to RBI guidelines and regulations
- With our 28+ years of expertise, you can trust us to handle your remittance efficiently.
- Our offline branches in key locations such as Delhi, Ahmedabad, Hyderabad, and Kolkata ensure accessibility.
- Choose between home collection or a branch visit for KYC procedures..
- Benefit from personalized guidance from our experienced currency experts throughout the process just by following few steps:
FAQs: Sending Money to Australia from India
1. What is the maximum amount I can send to Australia from India?
The Reserve Bank of India (RBI) allows individuals to remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme (LRS). This limit covers education expenses, maintenance, and other related costs.
2. What documents are required to send money to Australia?
- A2 cum LRS declaration form.
- Photocopy of PAN card.
- Photo cum address proof of the remitter.
- Admission letter from the college or university abroad.
- Student's valid passport if remitter is a close relative.
- Other KYC documents if requested.
3. How long does it take for the money to reach Australia?
When it comes to Forex Providers it usually takes only 1-2 business days.
4. Are there any hidden charges in sending money abroad?
Most services are transparent about their fees, but always check for:
- Transfer Fees: Vary by provider.
- Exchange Rate Markup: Difference between the market rate and the rate offered.
- Receiving Bank Fees: Some banks in Australia may charge a fee for receiving international transfers.
5. Can I send money directly to the university's account?
Yes, many students send money directly to the university’s bank account for tuition and other fees. Ensure you have the correct bank details provided by the university.
6. What is the role of a SWIFT/BIC code?
The SWIFT/BIC code is an international standard for identifying banks. It ensures that your money is sent to the correct bank. Always double-check this code when initiating a transfer.
*Remarks:
The rates given are as accurate as the specified date and sourced from Google Finance. FOREX rates keep fluctuating so consult with your known expert before you send money to Australia from India.
References:
- Economics Times.
- Groww.
https://groww.in/blog/tcs-on-foreign-remittance-transactions-under-lrs
- Axis Bank.
https://www.axisbank.com/retail/forex/international-fund-transfer/remit-money-australia
- Monitor ICEF.
- Y-Axis.
https://www.y-axis.com/visa/study/australia/
- CommBank.
https://www.commbank.com.au/personal/international/international-money-transfer.html
