Common Mistakes to Avoid When Sending Money to India

Sending money to India should be straightforward,  and with the right platform, like Pesa, it is. But a surprising number of senders lose money, experience delays, or run into compliance trouble due to avoidable errors. Whether you are an NRI supporting family back home, a student covering fees, or someone managing a property in India, the same mistakes come up again and again.

Here is what to watch out for, and exactly how to avoid each one.

1. Focusing on the exchange rates and ignoring hidden fees

This is the most expensive mistake you can make, and it is also the most common. Many senders see "zero fees" advertised and assume they are getting the best deal,  but providers who charge no transfer fee almost always recover that revenue through a worse exchange rate. Except Pesa.

The only number that truly matters is how many rupees land in the recipient's account. A provider charging a small fee but offering a rate close to the mid-market rate will often deliver more rupees than a "fee-free" provider with a hidden markup baked into its exchange rate.

What to do: Before confirming any transfer, check the total INR your recipient will receive. Use a comparison tool like Monito or simply calculate the effective rate yourself. Always compare the final payout, not the headline fee.

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2. Entering incorrect recipient details

One wrong digit in a bank account number or an incorrect IFSC code can significantly delay your transfer, and in the worst case, send funds to the wrong account entirely. Recovering funds credited to an incorrect account requires the recipient's cooperation and can take weeks, with no guarantee of success.

Common errors include:

• Wrong account number (even a single transposed digit)
• Incorrect or outdated IFSC code
• Misspelled recipient name (must match the bank account exactly)
• Wrong UPI ID for wallet transfers

What to do: Verify recipient details directly with the person before every transfer, especially for large amounts. Save verified details in your transfer app for future use and double-check before confirming. Set up transaction notifications to catch any issues immediately.

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3. Using your bank instead of a specialist transfer service

Traditional banks are the most familiar option, but they are also consistently the most expensive for international transfers. Banks typically apply a significant markup to the exchange rate on top of a wire transfer fee, and in many cases, the transfer also passes through one or more intermediary banks, each of which may deduct its own charges before the money reaches the recipient.

The result is that your recipient often receives less than you expected, with no clear explanation of where the difference went.

What to do: Use a regulated specialist transfer platform for transfers to India.  Services like Wise, Remitly, and Pesa offer significantly better rates than banks, faster delivery, and full cost transparency before you commit to a transfer. Reserve bank wire transfers for situations where no alternative is practical.

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4. Ignoring intermediary bank charges

Even when you use a specialist platform that quotes a clear fee, money sent via the SWIFT banking network often passes through one or more intermediary banks on its way to India. These banks can deduct their own fees, sometimes up to USD 40, before passing funds to the recipient's bank.

This is particularly common with bank-to-bank wire transfers and can mean your recipient ends up with less than quoted, sometimes significantly so.

What to do: Choose transfer platforms that use local payment rails rather than SWIFT, where possible; these typically bypass intermediary banks entirely and deliver funds directly to Indian bank accounts with no hidden deductions. Always ask your provider whether intermediary bank fees may apply.

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5. Sending money at the wrong time

Exchange rates can fluctuate daily in response to economic news, central bank decisions, and broader currency market movements. Sending money impulsively without checking the rate can mean you're transferring at an unfavourable moment.

For larger amounts, even a small rate difference has a meaningful impact. On a CAD 5,000 transfer, a 1% worse rate means your recipient receives CAD 50 less.

What to do: If your transfer is not urgent, spend a few minutes checking the current rate against historical averages. Many transfer apps offer rate alerts that notify you when the CAD/INR rate hits a level you set. For very large transfers, some platforms allow you to lock in a rate in advance.

6. Sending frequent small transfers instead of batching

On some platforms, every transfer incurs a cost,  whether a flat fee, an exchange rate markup, or both. Sending small amounts frequently unnecessarily multiplies those costs. A sender who transfers CAD 200 every week pays those costs 52 times a year. Consolidating into monthly or bi-monthly transfers significantly reduces the total cost of sending.

What to do: Use Pesa for your free transfers to India 

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7. Using an unverified or unlicensed transfer service

Scams targeting international money transfers are increasingly sophisticated. Fraudulent services may appear legitimate, offer attractive rates to attract senders, and then disappear with the funds, or simply fail to process transfers and become unresponsive.

What to do: Only use transfer platforms that are licensed by a financial regulator in your country. In Canada, legitimate money transfer operators must be registered with FINTRAC. Verify registration before using any service you are unfamiliar with, and be especially cautious of deals that seem significantly better than market rates — they rarely are.

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8. Selecting the wrong transfer category or purpose

Many transfer platforms and banks ask you to declare the purpose of your transfer, whether it is a family remittance, an education payment, a medical expense, or a business transaction. Selecting the wrong category can trigger compliance reviews, slow processing, or, in some cases, flag and hold the transfer.

This is especially relevant for India, where the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA) have specific rules governing the categorisation and use of incoming funds.

What to do: Select the purpose that accurately describes your transfer. For personal remittances to family, this is usually straightforward. For education fee payments, business transfers, or property-related transactions, make sure you understand which category applies and whether any additional documentation may be required.

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9. Exceeding transfer limits without proper documentation

India's FEMA regulations and individual platform policies both impose limits on the amount that can be transferred in a single transaction or within a given period. Attempting to exceed these limits without the proper documentation can result in transfers being rejected, delayed, or flagged for review.

What to do: Check the transfer limits of your chosen platform before initiating a large transfer. For high-value transactions, such as property purchases, large family gifts, or business payments,  ensure you have the required documentation ready, including proof of source of funds if requested.

10. Not replenishing recipient details after bank changes

Indian bank account details can change when a recipient switches banks, updates their account, or moves to a new branch. IFSC codes occasionally change when banks merge or restructure. Sending outdated details can cause delays and misdirected funds.

What to do: Periodically confirm recipient bank details with your contacts, especially if you have not sent a transfer in several months. Before any large transfer, a quick check takes less than a minute and can prevent significant headaches.

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11. Paying by credit card without checking the surcharge

Many transfer platforms accept credit card payments for convenience, but this typically triggers an additional 1.5 to 3 percent surcharge on top of the transfer cost. On larger amounts, this fee adds up quickly and often goes unnoticed until the statement arrives.

What to do: Use a bank account debit or direct bank transfer to fund your remittance wherever possible. Only use a credit card if speed is absolutely critical and you have accounted for the additional cost.

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12. Not tracking the transfer after sending

Sending the money and assuming it will arrive without issue is a common mistake,  particularly for first-time users of a new platform. Transfers can occasionally be held for compliance review, delayed by bank processing times, or stuck pending additional verification.

What to do: Enable notifications for your transfer and check that it progresses through each stage, sent, in transit, and credited. Most platforms provide a tracking reference number. Share this with your recipient so they can monitor the arrival as well. If a transfer takes longer than the quoted delivery time, contact the platform's customer support promptly.

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Finally

Many of the mistakes above are significantly less likely when you use a well-designed, transparent transfer platform that shows you the full cost upfront, uses local payment rails to avoid intermediary charges, and provides real-time tracking from send to delivery.

Taking five minutes to choose the right service before your first transfer,  and checking rates each time before you send, is the single most effective way to protect the value of your remittances.