Remitly, Instarem or Western Union: The Best Wise Alternatives for Sending Money from India
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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- Last modified:
Short answer
Remitly, Instarem, Western Union and Wise are compared in 2026 for sending money from India. Residents remit under the RBI Liberalised Remittance Scheme, up to USD 250,000 a financial year, with PAN and Form A2. AD banks report each transfer with an RBI purpose code. CGST Rule 32(2) values GST on currency conversion. FIRA and LUT cover export receipts only.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Resident individuals in India sending money abroad for permitted purposes such as studies, gifts, travel, medical treatment or maintenance of relatives, and Indian businesses paying for imported services, comparing Wise with Remitly, Instarem and Western Union in 2026 | RBI Master Direction on the Liberalised Remittance Scheme paras A.1, A.7, A.15 and A.16; RBI Master Direction on the Money Transfer Service Scheme para 1.1; FEMA (Export and Import of Goods and Services) Regulations 2026 Regs 4(2) and 18(2); RBI A.P. (DIR Series) Circular No. 20; CGST Rule 32(2); Income-tax Act, 2025 | Skydo, Razorpay, Wise Business, Instarem, Remitly, Western Union | 6 Oct 2026 |
How do Wise, Western Union, Instarem and Remitly compare for people sending money from India?
Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.
| Platform | Best for | Fee | FX markup | Settlement | FIRA | RBI PA-CB status | INR on $5,000 | Source |
|---|---|---|---|---|---|---|---|---|
| Skydo | Indian freelancers and exporters receiving mid to large B2B invoices | $19 up to $2,000, $29 to $10,000, 0.3% above + GST | States zero FX margin at live rate | States under 24 hours; FAQ timelines vary by rail | States instant, free FIRA per payment | RBI authorised PA-CB Inward and Outward; on RBI list | ₹4,71,073 | Skydo pricing (checked 6 Oct 2026) |
| Razorpay | Indian businesses and freelancers on Razorpay invoicing foreign clients | 1% per bank transfer (Rs 1,000 flat below Rs 1,00,000) + GST | States 0% markup on MoneySaver at live rate | States 1 day (T+1 after invoice shared) | FIRS within 24 hours of settlement; no charge listed | RBI authorised PA-CB inward and outward, plus PA-O | ₹4,68,722 | Razorpay pricing (checked 6 Oct 2026) |
| Wise Business | Freelancers and small exporters wanting multi-currency local accounts and eFIRC | Calculator: 1.6% + $2 per payment + 18% GST | Mid-market rate; cost is the 1.6% conversion fee | States under 90 minutes in business hours | eFIRC per transfer, 2 USD + 18% GST | States in-principle PA-CB approval; not found on RBI page | ₹4,65,312 | Wise Business pricing (checked 6 Oct 2026) |
| Instarem | Indians sending money abroad; approved exporters by application | Standard receive fee 0.30%, varies; free withdrawal; India rate not confirmed | Margin not published; states it adds a small margin | States auto-transfer to Indian bank at midnight | Not confirmed; no FIRA or FIRC mention | Nium India PA-CB application under process per RBI | Price on request: India receive fee set on approval; FX margin unpublished | Instarem pricing (checked 6 Oct 2026) |
| Remitly | Family and personal remittances from the US to India | Sender pays $3.99 below $1,000, $0 from $1,000; recipient charges not confirmed | Not published; may earn from rate difference | Promised time per transfer; specific timings not confirmed | Not confirmed; not stated on Remitly pages | Not confirmed; not shown as PA-CB authorised | Not for business: Remitly is for personal, family or household transfers | Remitly pricing (checked 6 Oct 2026) |
| Western Union | Personal and family remittances sent to India from abroad | Receiver free; sender fees vary; MTSS bars trade remittances | Margin not published; states it earns from currency exchange | Not confirmed; no bank deposit timeline given | Not confirmed; not a route for export proceeds | Paid under RBI MTSS via authorised Indian Agents | Not for business: RBI MTSS bars trade related remittances | Western Union pricing (checked 6 Oct 2026) |
- Your AD Category-I bank: Authorised Dealer banks release foreign exchange to resident individuals under the Liberalised Remittance Scheme against Form A2 and PAN. For a business paying for imported services, the AD bank makes the payment and updates IDPMS under Regulation 4(2) of the FEMA 2026 regulations.
Which platforms are named as Wise alternatives for sending money from India, and can Indian residents use them?
Remitly, Instarem and Western Union are the platforms named in this comparison as Wise alternatives for sending money from India, and their eligibility differs. Instarem and Western Union describe sending money from India on their India sites, while Remitly's pages reviewed describe transfers into India. Remittance services under the RBI Money Transfer Service Scheme cannot carry money out of India, because that scheme permits only inward personal remittances. Outward transfers by individuals run under the Liberalised Remittance Scheme through an authorised dealer.
| Platform or option | Can Indian residents or businesses use it? | Source | Best for |
|---|---|---|---|
| Wise | Yes, for individuals sending from India in INR. Wise India's send page explains paying in INR by debit card, credit card or online banking. Sending by Indian businesses from India is Not confirmed. | Wise India: send money abroad | Individuals sending to the countries Wise lists for INR transfers |
| Western Union | Yes, for individuals online. Western Union India says residents with a valid PAN card, address proof and an Indian bank account, aged 18 or over, can register and send money online. Sending from agent locations in India is not available. Payments to business entities abroad are limited to overseas education fees and business travel, tour, hotel or travel agent payments. | Western Union India: registration FAQ; Western Union India: agent locations FAQ; Western Union India: send money FAQ | Individuals paying overseas colleges or sending to family online |
| Instarem | Yes, for individuals. Instarem's India site offers transfers from India to 60+ countries, including payments for overseas education. Its licences page names Nium Forex India Pvt. Ltd. as the India entity for consumers. Sending by Indian businesses from India is Not confirmed. | Instarem India home page; Instarem licences | Students and families paying abroad from India |
| Remitly | Not confirmed for sending from India. Remitly's India page describes transfers sent to India from the United States, paid out by bank deposit, UPI or cash pickup. Its US user agreement limits the service to personal, family or household purposes. | Remitly: send money to India; Remitly User Agreement | People abroad sending money to family in India |
| Your AD Category-I bank (not a platform) | Yes. AD banks may freely allow remittances by resident individuals up to USD 250,000 per financial year under LRS. The scheme is not available to corporates, partnership firms, HUFs or trusts, which pay for imports through their AD bank under the FEMA 2026 regulations. | RBI LRS Master Direction, para A.1; FEMA Regulations 2026 | Business import payments, capital account transfers and remittances made through a bank branch |
Which of Wise, Western Union, Instarem and Remitly costs least on $500, $2,000 and $5,000?
Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 4 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,802 | ₹0 | ₹324 | ₹45,305 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,802 | ₹0 | ₹324 | ₹1,87,601 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,751 | ₹0 | ₹495 | ₹4,71,073 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,252 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,897 | ₹0 | ₹342 | ₹1,87,489 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,743 | ₹0 | ₹854 | ₹4,68,722 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹931 | ₹0 | ₹168 | ₹46,334 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,165 | ₹0 | ₹570 | ₹1,85,993 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,633 | ₹0 | ₹1,374 | ₹4,65,312 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
For example, on a $2,000 invoice Skydo pays about ₹1,87,601 and Wise Business about ₹1,85,993 at today's reference rate, a difference of ₹1,607.
Which documents and GST rules apply when sending money from India through Wise, Western Union, Instarem or Remitly?
The same documents apply whichever provider handles the transfer, because they come from FEMA, GST and income-tax law. A resident individual gives PAN and Form A2 under the LRS Master Direction. GST on the currency conversion is charged on a value worked out under CGST Rule 32(2). A business paying for imported services follows the import rules in the FEMA 2026 regulations.
| Document | Who provides it | When needed | Best for |
|---|---|---|---|
| PAN | The resident individual | For every remittance under LRS, under para A.16 of the LRS Master Direction | All individuals sending money abroad |
| Form A2 | The resident individual, to the AD branch | For purchase of foreign exchange under LRS, under para A.15 | Individuals remitting for studies, gifts, travel or family |
| Importer's declaration for IDPMS closure | The importer, to its AD bank | For import invoices up to ₹10 lakh, per invoice or quarterly in bulk, under Regulation 4(2) | Businesses paying overseas suppliers of services |
| Tax invoice showing GST on currency conversion | The authorised dealer or money changer | The taxable value is the spread against the RBI reference rate, or a deemed slab value, under CGST Rule 32(2) | Anyone checking the GST line on a remittance |
| Any tax deducted or collected on the remittance | The AD bank or other authorised dealer | Authorised dealers must comply with the tax laws, as applicable, under para B.5 of the LRS Master Direction; ask your bank whether tax is collected on your remittance and at what rate | Individuals checking the tax line on a remittance |
What changed this year?
Two legal changes in 2026 touch money sent from India. The Income-tax Act, 2025 replaced the 1961 Act on 1 April 2026, and the FEMA Export and Import Regulations 2026 took effect on 1 October 2026 for import payments. The LRS Master Direction still sets a USD 250,000 limit, and MTSS still permits only inward remittances.
- Income-tax Act: The 1961 Act was repealed on 1 April 2026, and tax years before that date are not disturbed, as the Income Tax Department FAQ explains.
- Import payments: From 1 October 2026, import invoices up to ₹10 lakh can be closed in IDPMS on the importer's declaration, under Regulation 4(2); see the FEMA update.
- Import directions: RBI Circular No. 20 superseded the Master Direction on Import of Goods and Services and its listed circulars.
- LRS limit: The limit stays at USD 250,000 per financial year in the LRS Master Direction, last updated as on 6 September 2024.
- MTSS: The MTSS Master Direction, updated as on 29 September 2026, still states that no outward remittance from India is permissible under MTSS.
How did we verify this?
Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.
- RBI Master Direction - Liberalised Remittance Scheme (LRS), FED Master Direction No. 7/2015-16 (updated as on 6 September 2024), Part A paras 1, 7, 15, 16; Part B para 5 (checked 6 Oct 2026)
- RBI Master Direction - Money Transfer Service Scheme (MTSS), FED Master Direction No. 1/2016-17 (updated as on 29 September 2026), Para 1.1 (only inward personal remittances; no outward remittance); para 3.4 (checked 6 Oct 2026)
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, Regulations 1(2), 4(2) second proviso, 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194: Export and Import of Goods and Services (16 January 2026), Para 4; Annex B (import circulars superseded) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84: Compilation of R-Returns, Reporting under FETERS (29 February 2012), Annexure II, payment purposes S03 (travel) and S1302 (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 32 (Determination of value in respect of certain supplies), Rule 32(2)(a) and (b) (checked 6 Oct 2026)
- Income Tax Department: Objective and scope of the New Act (Income Tax Act, 2025 FAQs), FAQs 2 and 7 (checked 6 Oct 2026)
- Wise India: Send money abroad, How to send money internationally from India (checked 6 Oct 2026)
- Western Union India: Registration FAQ, Who can register and send money online? (checked 6 Oct 2026)
- Western Union India: Agent locations FAQ, Can I send money from an agent location in India? (checked 6 Oct 2026)
- Western Union India: Send money FAQ, For what purposes can I send money online when sending to a business entity? (checked 6 Oct 2026)
- Instarem India home page, Footer fee statement; consumer service description (checked 6 Oct 2026)
- Instarem: Licences, India: Nium Forex India Pvt. Ltd. (consumers) (checked 6 Oct 2026)
- Remitly: Send Money to India from the US (checked 6 Oct 2026)
- Remitly User Agreement (US), Service available to consumers for personal, family or household purposes (checked 6 Oct 2026)
- Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
- Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
- Wise India: Fees for receiving money (Business), Conversion fee depends on the currency; eFIRC for every transfer; GST 18% of (conversion fee + eFIRC fee); calculator (checked 6 Oct 2026)
- Western Union India: Receive money (checked 6 Oct 2026)
Frequently asked questions
Can Western Union be used to send money from India under the RBI LRS limit?
Yes, online. Western Union India lets residents with a valid PAN, address proof and an Indian bank account register and send money online. Agent locations in India do not offer sending. Each transfer counts toward the USD 250,000 yearly limit under the Liberalised Remittance Scheme, which includes current account remittances such as gifts, studies and travel.
Does Remitly let Indian residents send money from India in 2026?
This is Not confirmed. Remitly's India page describes transfers sent to India from the United States, paid out by bank deposit, UPI or cash pickup. Its user agreement limits the service to personal, family or household purposes. See Remitly review and Wise vs Remitly.
Why can't money transfer operators that pay out in India send money out of India under MTSS?
The RBI MTSS Master Direction allows only inward personal remittances into India, such as family maintenance and payments to foreign tourists. Paragraph 1.1 states that no outward remittance from India is permissible under MTSS. Outward transfers by individuals use a separate route under the Liberalised Remittance Scheme.
Is PAN and Form A2 needed to send money abroad through Instarem or Wise?
Yes. The LRS Master Direction makes PAN mandatory for every remittance under the scheme in para A.16. Para A.15 requires the resident individual to furnish Form A2 for purchase of foreign exchange. These rules apply to every remittance under the scheme, including transfers made through Instarem or Wise.
Can an Indian company or partnership firm use LRS to pay through Wise alternatives?
No. Para A.1 of the LRS Master Direction says the scheme is not available to corporates, partnership firms, HUFs or trusts. A business paying an overseas supplier of services makes an import payment through its AD bank under the FEMA 2026 regulations, which also set IDPMS closure rules for import invoices.
Which RBI purpose code applies when sending money from India for studies or gifts?
The code depends on the reason for the transfer. The RBI purpose code list includes S1302, "Remittance towards personal gifts and donations", and codes in the S03 travel group for education travel. AD banks report remittances in FETERS. See what an RBI purpose code is.
How is GST calculated on currency conversion when sending money from India?
GST is charged on a value, not on the full amount sent. Under CGST Rule 32(2), the value is the difference between the dealer's rate and the RBI reference rate, times the currency units. The dealer may instead use deemed slabs, such as one percent of up to ₹1 lakh exchanged, with a ₹250 minimum.
Does a FIRA or LUT apply when sending money abroad through Wise or Western Union?
No. A FIRA or FIRC records money received into India, and a GST LUT is filed by exporters of goods or services. Neither document is part of an outward personal remittance under the Liberalised Remittance Scheme. Indian exporters receiving payments follow the FEMA 2026 regulations. See what inward remittance is and Wise alternatives for exporters.