How to Send Money from India to Canada

Key Takeaways

Ensure proper documentation and compliance with RBI regulations when transferring money from India to Canada.
The most common methods for transferring money from India to Canada include wire transfers, telegraphic transfers, and digital remittance platforms.
There are different limits and processing times for each transfer method and the purpose of remittance.
Considering factors such as charges, exchange rates, and tax implications is essential before sending money abroad.

Introduction to Transfer Money from India to Canada

Sending money abroad can seem like a complex process for many Indians who support family staying abroad, pay for education, or invest in capital assets. Sending money from India to Canada requires careful thought and compliance with the guidelines set by the Reserve Bank of India (RBI).

This guide outlines the process of transferring money from India to Canada, including methods, required documentation, limits, and timelines to ensure a smooth and compliant transaction.

Best Ways to Transfer Money from India to Canada

When you plan to transfer money from India to Canada, you can choose from several methods based on the purpose of the transfer, such as:

Wire Transfer – It is a remittance method where funds are transferred between bank accounts. This transfer method is processed through the SWIFT network and is compliant with all regulations. You can prefer this method to send money from India to Canada for business and regular transfers.
Telegraphic Transfers (TT) – A secure electronic transfer method via the SWIFT network for fast and reliable fund transfers. It is used mostly for transferring large sums, such as education fees or family support.
Digital Remittance Platforms – Banks and financial institutions offer online services to transfer funds from India to Canada, making it faster and easier to send regular or smaller amounts.
Money Transfer Operators (MTOs) – These are dedicated services for urgent, low-value personal transfers, often used when the recipient does not have a bank account.
Demand Drafts and Foreign Currency Cheques - Paper-based methods suitable for non-urgent payments like tuition fees, property transactions, or occasional large transfers where electronic options are not preferred or available.

Step-by-Step Process to Transfer Money Abroad

Transferring money from India to Canada is easy and quick with DBS Treasures remittance services. Here are the steps to send money abroad:

Step 1: You can initiate transfers using either the DBS Digibank app or the internet banking portal.
Step 2: Provide the recipient’s details, such as bank account number and name, branch address, along with the SWIFT code. DBS Treasures uses a live SWIFT-linked database to provide up-to-date bank codes, which ensures that details are free of any error.
Step 3: Use your resident savings account to transfer the funds. Confirm your details and submit the transfer request for quick processing. At this stage, you will also be required to select the RBI-approved purpose code for the transfer. Common purpose codes include:

P1006 – Education Fees
P1012 – Maintenance of Close Relatives
P1009 – Medical Treatment Abroad
P1007 – Business Payments
P1106 – Gifts and Donations
P1301 – Investment in Overseas Securities

Step 4: You can track your transfer status through the DBS digibank app or internet banking. If you submit your transfer before the cut-off time, funds may be transferred on the same day.

Note: When you add a new payee via Internet Banking, a 24-hour cooling-off period applies before you can initiate a transfer to them. This security measure helps protect your account.

See how easy it is to send money with DBS Treasures Remittance Services. Learn how it saves time and keeps your transfers safe:

Open DBS Treasures Account

Documents Required for Sending Money from India

To send money from India to Canada, you’ll need a few key documents to meet RBI and bank requirements:

PAN Card: Mandatory for tax purposes. Form 60 if you don’t have a PAN.
Photo ID & Address Proof: Usually your passport and Aadhaar or utility bill.
Beneficiary Details: Recipient’s name, bank account number, branch, and SWIFT/BIC code.
Purpose Declaration: RBI-approved purpose code (e.g., education, family maintenance) and supporting documents like admission letters or invoices.
Regulatory Forms: Form A2 for outward remittance and Form 15CA/15CB if applicable.
Source of Funds Proof: Sometimes required for large transfers.

Many banks, including DBS, let you upload these documents online for a smooth, paperless experience.

Having these ready helps your transfer to Canada go through quickly and without hassle.

Documents Required for Receiving Money in India

As a beneficiary, when you are receiving funds from India, you may need to provide certain documents to your local banks, such as:

Valid Photo ID: Passport, driver’s licence, or any government-issued ID.
Bank Account Details: Account number, branch information, and transit/ABA or IBAN, depending on the country.
SWIFT/BIC Code: This is required for international wire transfers, ensuring that funds are routed correctly.
Tax or Regulatory Forms: Depending on the country’s rules, the beneficiary will be required to submit compliance forms or provide proof of residence.

Transfer Limits and RBI Guidelines

For individuals planning to transfer funds from India to Canada, it’s important to abide by the Liberalised Remittance Scheme (LRS) set by the RBI and the transfer limits. Here are the key points:

Annual Transfer Limits

Indian residents are allowed to send money from India to Canada for up to USD 250,000 or CAD 343,771.25. This includes all international transfers, fees, and charges.
Non-Resident Indians (NRIs) have more flexibility, with NRO account holders able to transfer up to USD 1 million annually.

Tax Collected at Source (TCS)

Transfers above INR 10 lakhs are subject to 20% TCS.
Lower TCS rates or exemptions apply for education, medical treatment, and other purposes. The exemptions apply when valid proof is provided.

RBI Compliance Guidelines for India-to-Canada Transfers

Each transfer must be tagged with an RBI purpose code that specifies why the money is being transferred.
Funds must be sent through RBI-authorised dealers only.
Keep records of all remittances for regulatory purposes.

Also Read: Liberalized Remittance Scheme (LRS) Guide for Indians

DBS Treasures NRI Savings Account makes it easier to manage funds in India and repatriate them abroad. It offers competitive interest rates and smooth transfer options for NRIs.

How Long Does It Take to Transfer Money to Canada?

One of the main concerns when transferring money from India to abroad is the time taken to remit the funds. This can vary depending on the transfer method, the cut-off time and the accuracy of the receiver’s details provided by you.

Same-Day Transfers – If you opt for DBS Treasures Remittance, you can enjoy the benefit of same-day transfers if submitted before the cut-off time.
1-2 Working Days – If the transfer request is made after the cut-off time or on weekends/ holidays, then it will be processed on the next working day.
Possible Delays – Incorrect SWIFT codes, Canadian bank holidays, or additional compliance checks may extend the transfer time.

Factors to Consider Before Sending Money

Before you initiate a transfer from India to Canada, check a few key factors that affect cost, speed and compliance.

Exchange rates — Small differences change the final payout; DBS Treasures Remittance offers competitive, volume-based FX pricing.
Transfer speed — Same-day if sent before cut-off; otherwise, 1–2 business days. Plan for weekends, bank holidays and compliance hold.
Limits & compliance — LRS limit (residents) is USD 250,000 per financial year; you must select an RBI purpose code and be aware of TCS rules.
Fees & hidden charges — Consider sending fees, correspondent/receiving bank charges and any TCS or tax implications.
Accuracy of beneficiary details — Wrong SWIFT/BIC or account numbers cause delays or rejections; use live SWIFT lookups when available.
Source-of-funds & large transfers — Banks may request proof of funds for high-value transfers; keep supporting documents ready.
Convenience & support — Digital channels offer faster, paperless transfers and tracking; check customer support options if something goes wrong.

Conclusion

Transferring money from India to Canada is straightforward when you understand the RBI’s LRS rules, choose the right transfer channel, and provide accurate beneficiary details. With DBS Treasures Remittance, you can enjoy competitive FX rates, a seamless digital journey via Mobile or Internet Banking, and faster turnaround times, ensuring your funds reach Canada securely and without unnecessary delays.