How much money can you send to India from the UK?

Is there a limit on sending money from the UK to India?

Not in law, for personal transfers to a bank account. Under the Reserve Bank of India's rules for remittances received through banks, there is no limit on the amount or the number of personal transfers. Only trade-related payments through this route are capped, at ₹15 lakh each.

The US$250,000 a year limit you may have read about is India's Liberalised Remittance Scheme. It applies to residents of India sending money out of India, not to money coming in.

Why might a provider limit how much you can send?

Because UK law requires it to know who you are and where large sums come from. Under the UK's Money Laundering Regulations, money transfer providers must verify your identity and monitor transfers. Before sending a large amount, they may ask for evidence of the source of the money, such as payslips, bank statements or the completion statement from a property sale.

Providers also set their own limits, per transfer, per day or per year, which can depend on how you pay. If you plan to send a large amount:

• check the provider's maximum before you start, and whether it applies per transfer, per day or per year
• have your ID and proof of address ready
• keep evidence of where the money came from
• expect extra checks the first time you send a large amount

Don't split a large amount into smaller transfers to avoid checks. Providers look for this pattern, and it can delay or block your transfers.

How much can be collected in cash in India?

Up to US$2,500 per transfer, and no more than 30 transfers per recipient in a calendar year, under the Reserve Bank of India's Money Transfer Service Scheme. Only up to ₹50,000 of a transfer can be handed over in cash. Anything above that must be paid into a bank account, loaded onto a bank's prepaid card or paid by cheque or demand draft.

The scheme is only for personal remittances such as family support. It can't be used for buying property, investments, donations to charities or payments into NRE accounts.

Is there a limit on sending money to an NRE or NRO account?

Not on money going in. The limits apply to taking money back out of India: an NRE balance can be moved abroad freely, while NRIs can move up to US$1 million a financial year out of NRO balances. Our guide to NRE and NRO accounts compares the two.

Will sending a large amount to India create a tax bill?

Not because of the transfer itself, but large gifts can have tax consequences. In India, gifts from non-relatives worth more than ₹50,000 in a financial year are taxable for the recipient. In the UK, gifts above the exemptions can count towards inheritance tax if you die within 7 years. Read our guide to tax on money sent to India.