Today, there are over 1.5 million people of Indian descent living in the UK. As a matter of fact, Indians make up a considerably large percent of migrants occupying the British soil in 2024. With a diasporic population as big as this, the outbound cross-border payments across the United Kingdom is actively oiled by Indians.

You may belong in this pool and are bothered by not just finding the right app to send money to India from the UK with, but about hidden costs associated with international remittances like this.

While it is relatively easy to send money to India from the UK, there are nuances that go beyond just hitting the send button. Let’s unearth some of these nuances. First let’s begin with a very vital question:

Are You Losing More Than You Think When You Send Money to India?

When you send money to India, you might assume that the amount deducted from your account is all that matters. However, the reality is quite different. In this article, we highlighted how exchange rates play a significant role in how much your recipient actually gets.

Regardless of whether you’re sending money to India from the UK or elsewhere, what you must know is that there's a difference between the mid-market rate (the actual exchange rate) and the rate your bank offers you.

Why Are There Hidden Costs When Sending Money to the India from the UK?

Hidden costs are a notorious aspect of cross-border payments, and sending money to India from the UK is no exception. Understanding these hidden costs can help you make more informed decisions and avoid unpleasant surprises. Here are some practical scenarios highlighting where these hidden costs come from:

1. Currency Conversion Fees:

When you send money to India from the UK, the exchange rate provided by banks or some money transfer services often include markup. For example, if the mid-market rate is 100 INR to 1 GBP, the bank might offer you 98 INR to 1 GBP. This difference, seemingly small, accumulates into a significant hidden cost over large transfers.

2. Intermediary Bank Fees:

Cross-border payments often involve multiple banks, especially if the transfer is routed through intermediary banks.

Each bank along the chain may charge a fee for processing the transaction. These fees are usually not disclosed upfront, leading to unexpected deductions from the amount received in India.

3. Compliance and Regulatory Fees:

Both the UK and India have stringent regulations governing international money transfers. Banks and money transfer providers incur costs to comply with these regulations, and these costs are often passed on to the customer.

This can include costs related to anti-money laundering checks, Know Your Customer (KYC) compliance, and other regulatory requirements.

4. Administrative Fees:

Some banks and transfer services charge additional administrative fees for handling cross-border payments.

These fees can be for processing the transfer, handling currency conversion, or even for maintaining the infrastructure needed for international transactions. These fees can add up and reduce the amount received when sending money to India from the UK.

5. Time Delays and Extra Costs:

While not a direct fee, the time it takes for funds to reach the recipient can also be a hidden cost. Traditional banks can take several days to process cross-border payments, during which exchange rates may fluctuate, leading to a lower amount received than initially expected.

What Are the Other Challenges of Sending Money from the UK to India?

Sending money from the UK to India isn't just about fees and exchange rates. There are practical and logistical challenges that can make the process more difficult than expected:

These challenges can be frustrating, especially when time is of the essence.

How Digital Solutions Are Revolutionising Money Transfers to India?

While traditional banks come with a set of limitations, digital solutions offer innovative ways to send money to India. Here’s how they can revolutionise the process:

Is There a Fast Way to Transfer GBP to INR Online?

Yes, there are several cutting-edge methods to transfer GBP to INR online that bypass traditional pitfalls and save senders time. As a matter of fact, one of the popular means NRIs use in sending money from the UK to India is through online money transfer services.

Here is a list of solutions that are getting wider adoption in the cross-border payments ecosystem:

Here’s why Pesa's multi-currency wallet stands out:

Unlike traditional banks, Pesa allows you to manage multiple currencies seamlessly. You can hold GBP, INR, and other currencies in one place, eliminating the need for multiple accounts.

Pesa uses advanced encryption and security protocols to ensure that your funds are safe. Every transaction is protected, giving you peace of mind when sending money to India.

Pesa offers competitive exchange rates, ensuring that you get the best value when converting GBP to INR. This is particularly beneficial for those looking to send money to India from the UK.

The multi-currency wallet allows you to send money to India quickly and efficiently. You can also receive payments in various currencies without incurring additional conversion fees.

Pesa provides real-time transfers, ensuring that your money reaches its destination almost instantly. This is a significant advantage over traditional banks, which can take several days to process cross-border payments.

The Smart Choice for Sending Money to India

Digital services like Pesa not only offer the best way to send money to India but also ensure the process is smooth, fast, and cost-effective. By leveraging modern technology and prioritising customer needs, Pesa stands out as a top choice for anyone looking to transfer GBP to INR online. Sign up now!

So, next time you need to send money to India, skip the traditional banks and opt for a service that truly understands and caters to your needs. Choose Pesa, and experience the future of international remittances today. Get started today by downloading the Pesa app on App store or on Google Play Store.