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A complete guide to overseas remittance between India and Korea — From banking SWIFT to fintech apps, complete summary of fees, exchange rates, and required documents

By ARAZIA India Desk8 min read

Indian bank counter — Bank wire transfer counter for India-Korea overseas remittance — Deepak Patil (CC BY-SA 3.0, Wikimedia Commons)

When you live in India, you will have to send money to Korea at every moment, big or small. There are remittances that are repeated every month, such as savings or loan repayments, and there are also cases where you need to send living expenses to your parents in Korea or, conversely, receive funds from Korea for the initial settlement of your new job. When you try to send money abroad for the first time, the instructions are slightly different at each bank, and the two numbers, fees and exchange rates, are not easy to see, so it is easy to get confused about where to start.

In India, the RBI (Reserve Bank of India)'s LRS (Free Remittance System) regulations apply to overseas remittances by residents, and there are different procedures from Korea, such as the need to prepare tax-related documents when remitting more than a certain amount. Conversely, when sending from Korea to India, there are documents and notification standards required by the bank, so if you know in advance that the required items will vary depending on the direction, you will be less surprised.

In this article, based on my experience actually using overseas remittance in places such as Delhi and Gurgaon,Comparison of bank wire transfer and online fintech services → How to read the exchange rate → Required documents for each direction → Check points when receiving money transferArranged in order. However, since remittance limits, tax rates, and fees change frequently depending on policy and timing, we recommend that you check the latest information with the official guidance of your bank or service before actually remitting money.

01Let’s start by understanding how to send money — bank wire transfer and online fintech services.

There are two main ways to send money from India to Korea or from Korea to India. been written for a long timeBank wire transfer (SWIFT transfer)And recently, the number of users is increasing rapidly.Online fintech remittance serviceno see. Both methods have distinct pros and cons, so your choice will depend on the amount you are sending, how urgent it is, and how familiar you are with using the app.

method	Approximate Duration	characteristic
Bank wire transfer (SWIFT)	2 to 5 business days	It is the most common and stable, but fixed fees and intermediary bank fees are often charged separately.
Online fintech remittance app	Same day ~ 1-2 days level	Exchange rate spreads are often relatively low and progress can be tracked in real time in the app. However, services for Indian residents may require affiliate bank account verification.
Bank teller visit type remittance	Same day - Wednesday business days	You can receive document consultation directly, which is reassuring if you are using it for the first time or if the amount is large, but it requires time to visit the branch.

If you need to send large amounts of money on a regular basis, consider using banking and fintech services.Actual amount received (final amount after applying exchange rate)It's a good idea to compare them together. This is because if you make a decision based solely on the phrase ‘no commission’ displayed in the advertisement, you will often lose money on the exchange rate spread.

02Bank SWIFT wire transfer — the most traditional, practical process

A wire transfer through a bank is a method of sending funds to an overseas bank account using the international SWIFT network. When an Indian resident sends money abroadRBI (Reserve Bank of India)'s LRS (Liberalized Remittance Scheme)Remittances can only be made within the limit, and the purpose of the remittance (Purpose Code) must be specified along with the remittance application form at a bank counter or online banking.

Cost structure incurred when making bank transfers

Fixed transfer fee— Charged at a flat rate or fixed rate by bank
Correspondent bank fee— Additional deductions may be made depending on the remittance route.
exchange rate margin— The exchange rate announced by the bank is usually set at a certain degree unfavorable to the real-time market exchange rate.

Likewise when sending money from Korea to India.Designated foreign exchange bankRemittance is made through , and the documents to be submitted vary depending on the purpose of the remittance. In some cases, it may be convenient to use a Korean bank branch in India as you can receive consultation in Korean and transfer money using familiar procedures. Information on Korean banks in IndiaKorea in India — Complete contact information for embassies, KOTRA, Korean banks, and Korean associationsYou can check it in the article.

03Online fintech remittance service — compete with exchange rates and speed

As the number of online remittance platforms that originate overseas and operate services in India, such as Wise (formerly TransferWise), is increasing, the method of applying for overseas remittance using only a smartphone without going through a bank counter is becoming established. mostlyApply near-real-time exchange rates and track your progress in the appThe biggest difference from bank transfers is that you can do it.

However, since remittances going abroad from India are still subject to LRS regulations, even if you use a fintech service,Affiliated Indian Bank Account Verification (KYC) and PAN Card RegistrationThis is often necessary. Since each service supports different remittance purposes, limits, and processing countries, it is most accurate to check whether India-Korea section is supported and real-time fees directly on the official app or site before use.

What to check when choosing a fintech remittance service

Does it actually support the India-Korea route (some services only support specific country combinations)?
Is there a calculator function that shows the final amount received after currency exchange?
Documents required for KYC (PAN card, passport, Indian bank account, etc.)
Customer center response language and response procedures in case of dispute

Mobile banking app screen — Example of using India’s online fintech overseas remittance service — The characteristic of online fintech remittance services is that you can immediately check the exchange rate and progress through a smartphone app. · Hemekumarbtn (CC BY-SA 4.0, Wikimedia Commons)

04The key to comparing exchange rates — understanding the ‘basis rate’ and spread

In overseas remittances, what determines the amount you actually receive is more than the superficial fee.Exchange rate spread (difference from trading base rate)In many cases, it is. Even if a bank or remittance service claims to have ‘free fees’, the structure is such that it applies an exchange rate that is less favorable than the market’s real-time standard exchange rate and takes the difference as a de facto fee.

Another thing to keep in mind isThe Indian Rupee (INR) and the Korean Won (KRW) do not often have directly announced exchange rate pairs, so they are mostly converted using the U.S. Dollar (USD).The fact is that it does happen. Therefore, since the two-stage exchange rate and spread of rupee → dollar and dollar → won are applied together, it is necessary to get into the habit of calculating and comparing the real exchange rate based on the final received amount.

A practical way to compare exchange rates

Before sending money, use various banking and fintech apps.Final received amount based on the same amountCalculate in advance.
Check the real-time trading base rate on a portal or financial information site to estimate the spread width.
If the amount is not urgent, wait a few days to see when the exchange rate is favorable before sending the money.

Ancient bronze coins — an image symbolizing the history of money and exchange, Indian-Korean exchange rate comparison — The history of exchanging currency goes back thousands of years, but the essence of ‘how much you give and how much you receive’ remains the same even now. (The photo shows a bronze coin from the Kingdom of Pontus BC) · Amisos / BNF (CC0, Wikimedia Commons)

05Required documents for overseas remittance — LRS, Form A2, 15CA/15CB, PAN card

The documents required when sending money from India to Korea and from Korea to India vary depending on the direction. Below is a summary of generally good documents to prepare:The actual required documents may vary depending on the bank/service, purpose of remittance, and amount, so be sure to check in advance.Please do.

direction	main documents
India → Korea	Passport and visa, PAN card, Form A2 (Foreign Exchange Purchase Application), proof of purpose of remittance (pay stub, contract, etc.), for amounts exceeding a certain amountForm 15CA (Voluntary Report)·15CB (Certified Public Accountant Confirmation)Additional requests available
Korea → India	Copy of passport, recipient's Indian bank account information (SWIFT/IFSC code), proof of purpose of remittance, confirmation of registration of designated foreign exchange bank

Regulatory points that are good to know

Overseas remittance for Indian residentsAbout $250,000 per year (LRS limit, subject to change depending on policy)It is possible inside.
For overseas remittances exceeding a certain amount,TCS (Tax Withheld)may be imposed, the relevant tax rates and standards have been frequently revised in recent years. Be sure to check the latest tax rates before sending money.
PAN Foreign exchange transactions are often restricted without a card, so it is recommended to obtain one at the beginning of your settlement in India. PAN Card issuance and overall tax reporting for expatriates in IndiaIndia expatriate income tax basicsWe cover this in more detail in the article.

India-related literature material cover — concept image of preparing overseas remittance documents — Since the required documents for overseas remittance are different depending on the direction, the process is easier if you organize documents such as passport, PAN card, and proof of income in advance. · Indian Museum (Public domain, Wikimedia Commons)

06Checkpoints when receiving remittances – Notification to the National Tax Service and confirmation of the source of funds

There are also some things that need to be taken care of when receiving money from overseas. in koreaDetails of overseas remittances and receipts exceeding a certain amount (approximately equivalent to USD 10,000, standards may vary) are notified to the National Tax Service through the bank.There is a system in place, so records are automatically kept without having to go through a separate reporting process. However, for large amounts where the source of income or assets appears unclear, the bank may request additional supporting documentation.

Likewise, when receiving funds from India to a Korean account, the bankDocuments proving the source of funds (salary, sale of assets, family support, etc.)There may be cases where it is requested. If you need to send a large amount of money in multiple installments, it is a good idea to organize documents in advance that can explain the source, such as pay stubs, contracts, or tax returns.

Habit of reducing mistakes

Every time you send moneyKeep the receipt (confirmation of remittance)If you do this, you will be able to respond quickly when an explanation is requested in the future.
If you remit money on a regular basis, it is natural for the bank to maintain the same purpose and amount each time.
Basic information related to Indian accounts (SWIFT/IFSC code, account number) is accurately checked in advance to prevent returns due to typos. If it is your first time opening an accountChecklist for your first 30 days in IndiaPlease refer to the bank account·UPI settings section.

Useful tips

Compare the final amount received rather than ‘fee free’

It's easy to miss the actual losses if you only look at the fee statements posted by banks or money transfer apps. If you get into the habit of calculating in advance and comparing the amount the other party actually receives (after reflecting the exchange rate spread) in two or three places when sending the same amount, you can find much more favorable conditions.

PAN Obtain a card in advance at the beginning of settlement.

Most overseas foreign exchange transactions for Indian residents require the PAN card. When you need to remit money urgently, without the PAN card, the entire process will be delayed, so it is a good idea to keep it with you when going through the initial administrative procedures for settling in India.

Consultation can be convenient if you use a Korean bank branch.

Using a Korean bank branch in India allows you to receive consultation in Korean and proceed with procedures using familiar document forms, which is especially helpful if you are making an overseas remittance for the first time. Please check branch information in advance.

Make the purpose of the remittance clear from the beginning

Required documents and tax treatment methods vary depending on whether the remittance is for living expenses, tuition, or investment purposes. If you accurately inform the bank or service of your purpose, you can reduce the trial and error of document preparation.

It is safer to maintain the same pattern for regular remittances.

If you repeatedly remit money at a similar time every month, for a similar amount, and for the same purpose, it is often processed naturally during the bank's review process. If you suddenly send a large amount of money in multiple installments, you may be asked for additional explanation.

Common pitfalls and how to solve them

If you try to send it to multiple accounts or family members in order to avoid exceeding the annual LRS limit, you may run the risk of violating regulations.

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If you need to transfer money that exceeds the limit, consult with your bank or tax expert to check the formal procedures and exception regulations rather than using expedient means. Double-check RBI official data for the latest limits and conditions.

If you visit the bank without preparing Form 15CA/15CB, the remittance will be delayed for several days.

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If you expect to remit more than a certain amount, check the list of required documents with a certified public accountant or bank representative in advance before your visit, and prepare with plenty of time considering the time it takes to issue a 15CB.

If you use a service with a large exchange rate spread without knowing it, you will receive less money than expected.

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Before sending money, compare the final receipt based on the same amount from two or three banks and fintech apps using a calculator, and select based on the actual exchange rate rather than the advertised fee.

You receive a large amount of money in Korea, but the account verification process takes longer because you cannot explain the source of the funds.

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Always organize documents that can explain the source of funds, such as pay stubs, contracts, and tax returns, and if you plan to receive a large amount of money, contact your bank in advance to check the necessary documents.

The remittance is returned or delayed due to incorrect input of the recipient's SWIFT/IFSC code or account number.

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Before applying for a remittance, it is also a good idea to check the receiving account information with a bank statement or official document and make a test remittance of a small amount first.

Latest updates

Exchange rate competition is intensifying due to the expansion of online fintech overseas remittance services.As online fintech services continue to enter the overseas remittance market, which was centered on bank counters, competition is continuing to lower exchange rate spreads and increase processing speed. It is safe to check the exact fee and exchange rate in real time on the official app for each service.
India's overseas remittance tax (TCS) regulations have been continuously revised in recent years.The withholding tax (TCS) standards and tax rates applied to LRS overseas remittances in India are applied differently depending on the purpose (education, medical care, investment, etc.) and have been frequently revised in recent years. Please check the latest tax rates with official data from the Income Tax Department of India before sending money.

FAQ

What is the annual remittance limit for sending money from India to Korea?

Overseas remittances by Indian residents are subject to RBI's LRS (Free Remittance System), which is known to be approximately $250,000 per year. However, this limit and detailed conditions may change depending on the policy, so be sure to check the latest standards with RBI's official data before remittance.

Which is cheaper: bank transfer or fintech app?

It's difficult to say in general terms. Since the exchange rate spread often determines the actual cost rather than the advertised fee, it is best to compare the amount the other party ultimately receives when sending the same amount from two or three places before making a choice.

Do I have to file a tax return if I receive overseas remittance from Korea?

There is a system in which overseas remittances and receipts exceeding a certain amount are automatically notified to the National Tax Service through the bank, so a record is maintained without a separate report. However, since this may be a separate issue from the income tax reporting obligation, we recommend that you refer to the related article to check the overall income tax treatment for expatriates in India.

Is Form 15CA/15CB always required for all overseas remittances?

Requirements vary depending on the specific amount or purpose of the remittance. Since it may be omitted if it is a small amount or for an exempt purpose, it is safe to check with your bank or a certified public accountant before remittance if the relevant documents are required for your remittance.

Where can I check the exchange rate between the Indian Rupee and the Korean Won?

Rupees (INR) and won (KRW) are rarely announced directly, so they are mostly converted using the U.S. dollar (USD). You can check real-time exchange rates through banking apps, fintech services, or financial information portals, and it is more accurate to compare based on the final receipt amount.

References & links

RBI Reserve Bank of India official site Income Tax Department of India Bank of Korea National Tax Service Embassy of the Republic of Korea in India (Ministry of Foreign Affairs and Embassy)