How to Send Money from India to UAE Bank Account

Nishan relocated to Dubai for a new job. Within a week, his parents in Chennai were asking us: "How do we send him money? The bank wants so many forms!"

We hear this question often. Whether you're supporting family in the UAE, paying for a property purchase, or settling business invoices, sending money from India abroad involves more paperwork than most people expect.

Here's everything you need to know about transferring money from India to UAE in 2025.

RBI's Liberalised Remittance Scheme: The Rule Book

Every rupee that leaves India falls under RBI's Liberalised Remittance Scheme (LRS). This scheme sets the rules for how much you can send and for what purposes.

As per current LRS regulations, Indian residents can remit up to USD 250,000 per Financial Year (April-March). This scheme is applicable to resident individuals, including minors.

That's roughly ₹2.1 crore at current exchange rates. For most personal transfers, this limit is more than sufficient.

👉 Tip: The USD 250,000 limit is per person, not per family. A husband and wife can each remit USD 250,000 separately.

What Can You Send Money For?

LRS covers most legitimate purposes. You can send money to UAE for:

• Family maintenance and support
• Medical treatment
• Education expenses
• Travel and tourism
• Property purchase abroad
• Investment in foreign stocks or bonds
• Business visits
• Gifts to relatives

However, LRS does not cover certain high risk activities, like remittances to countries identified as non-cooperative by FATF or speculative trading in forex markets.

TCS Rules: What Tax Will You Pay?

Here's where many people get confused. The government charges Tax Collected at Source (TCS) on outward remittances, but the rates changed in Budget 2025.

As per Budget 2025, the threshold limit for Tax Collected at Source (TCS) on foreign remittances under the Liberalised Remittance Scheme has been increased from Rs. 7 lakh to Rs. 10 lakh per financial year. This means no TCS will be levied for LRS transactions up to Rs. 10 lakh annually.

The good news? The deducted TCS under LRS can be claimed as a refund when filing your income tax return (ITR). It's not an additional tax-just an advance collection.

Also Read - Difference Between NRI and Resident Tax Filing in India

Methods to Send Money from India to UAE

1. Bank Wire Transfer (SWIFT)

This is the traditional and most common method. Your Indian bank sends money directly to the recipient's UAE bank account through the SWIFT network.

How it works: Once KYC is verified, the sender transfers funds to the chosen service provider through NEFT or RTGS. The amount includes the transfer value plus applicable charges and taxes.

Typical charges: ₹500 to ₹2,500 per transaction, plus exchange rate markup of 1-3%.

Time taken: 1-3 business days.

Best for: Large transfers over ₹5 lakh where security is priority.

Also Read -Can NRIs Open Joint Accounts with Residents in India

2. Online Money Transfer Services

Digital platforms like Wise, BookMyForex, and others offer better exchange rates and lower fees than banks.

Wise stands out for using the mid-market rate for currency conversion, which can mean you pay less overall compared to some providers.

Typical charges: ₹225-500 plus small exchange rate margin.

Time taken: Same day to 2 business days.

Best for: Regular transfers under ₹5 lakh.

👉 Tip: Banks in India typically charge high fees for international wire transfers to the UAE, often ranging between ₹1500 and ₹2000. Fintech apps can save you 50-70% on fees.

3. Foreign Currency Demand Draft

An older method where you purchase a draft in AED or USD, which the recipient deposits in their UAE bank.

Time taken: 5-7 business days (includes courier time).

Best for: When recipient doesn't have immediate access to banking.

Also Read -Step-by-Step Guide to Converting Resident Account to NRI Account

Documents Required for Outward Remittance

Banks won't process your transfer without proper documentation. Here's the complete checklist:

Mandatory for all transfers: PAN Card: Mandatory for tax compliance. Valid ID Proof: Passport, Aadhaar, or voter ID.

Also Read - PAN Card for NRIs: How to Apply.

Form A2: Form A2 for outward remittance is a vital document that enables you to send money outside India. This is a mandatory form that needs to be filled out.

Purpose-specific documents:

• Family support: Relationship proof
• Education: Admission letter, fee invoice
• Medical: Hospital estimate, doctor prescription
• Property: Sale agreement, registration papers
• Business: Invoice, contract

For transfers above ₹5 lakh: If you're transferring ₹5 lakh or more, you will need Form 15CB, which is certified by a Chartered Accountant to confirm the transaction complies with income tax rules.

Step-by-Step: How to Send Money via Bank

1. Gather documents - PAN card, ID proof, Form A2, and purpose documents
2. Visit your bank branch - Most banks require physical presence for first-time remittance
3. Fill Form A2 - Declare purpose, amount, and beneficiary details
4. Provide beneficiary details - Name, bank name, account number, SWIFT code, bank address
5. Pay TCS - Bank will calculate and deduct applicable TCS
6. Get confirmation - Collect SWIFT reference number for tracking

Beneficiary details you'll need:

• Full name (as on bank account)
• Bank name and branch address
• Account number (IBAN for UAE)
• SWIFT/BIC code
• Purpose code

Comparing Transfer Options

Common Mistakes to Avoid

1. Wrong beneficiary details A single digit error in IBAN can bounce your transfer. Banks charge ₹500-1,500 for failed transactions.

2. Incomplete Form A2 Fill up all sections of the forms, match with ID, use up-to-date documents, attach proofs for an outward remittance, choose the right purpose code.

3. Exceeding LRS limit without permission Transfers beyond USD 250,000 need RBI approval. Attempting without approval can result in rejection and scrutiny.

4. Ignoring exchange rate timing The INR-AED rate fluctuates daily. Track the rupee vs dollar movement before initiating large transfers.

5. Not keeping records Maintain copies of Form A2, bank receipts, and SWIFT confirmations. You'll need these for ITR filing.

For NRIs: Sending Money Back to UAE

If you're an NRI sending money from your NRO account to your UAE bank, different rules apply.

An NRI can remit up to USD 1 million per financial year from their Non-Resident Ordinary (NRO) account, subject to proper documentation and tax compliance.

For NRE accounts, there's no limit-funds are fully repatriable since they came from abroad originally.

Check your residential status to understand which rules apply to you.

A Smarter Alternative: GIFT City USD FDs

If you're an NRI in UAE looking to park funds safely while earning returns, consider an alternative approach.

Instead of keeping money idle in a UAE bank at 2-3% interest, you can invest in GIFT City USD fixed deposits offering 4.5-6% returns. These FDs are in USD, so you avoid rupee depreciation risk. And for UAE residents, the returns are completely tax-free.

When you need the money, repatriation to UAE is straightforward-both principal and interest are fully repatriable.

Compare your options using Belong's NRI FD comparison tool.

Your Next Steps

Sending money from India to UAE is straightforward once you understand the paperwork. Keep your documents ready, compare service providers, and time your transfers for better exchange rates.

For regular guidance on NRI finances, join our WhatsApp community of 2000+ NRIs discussing money matters daily. And if you're looking for smarter ways to invest your savings, download the Belong app to explore tax-efficient options designed specifically for global Indians.

Sources:

• RBI Liberalised Remittance Scheme FAQs
• ICICI Bank LRS Guidelines
• ClearTax LRS Guide 2025
• DBS Bank UAE Remittance
• BookMyForex India to UAE Transfer