Sending Money to Your Children in India
Complete guide to sending USD to your children in India. How it works, what you need, and how Root makes it simple.
Sending money to your children in India is a meaningful way to support their education, living expenses, and future. Many NRIs in the US rely on fast, secure remittances to ensure their children have what they need. This guide walks you through the process, required information, and key compliance considerations like TCS and bank details to avoid delays. You'll also learn how to maximize value with every transfer.
NRIs often send money to their children in India for school and college tuition, hostel fees, monthly living costs, and medical needs. Transfers typically happen monthly or at key intervals like semester start dates. These funds play a crucial role in maintaining a stable, high-quality life for children living with extended family or attending institutions in India.
What You Need to Know
Valid Bank Account for Child
Your child must have an active bank account in India—typically a savings account or NRO account. Minors can have joint accounts with a parent or guardian. Root currently supports NRO and regular savings accounts; NRE account support is coming soon.
IFSC Code Accuracy
Always double-check the 11-character IFSC code of the recipient’s bank branch. Incorrect IFSC codes are a leading cause of failed or delayed transfers. You can find this on the recipient’s bank website or via a quick online search using the bank and branch name.
TCS on High-Value Remittances
If total remittances to India exceed ₹7,00,000 (~$8,400) in a financial year (April–March), a 5% Tax Collected at Source (TCS) applies on the entire amount above the threshold. This does not replace income tax but may be adjustable later. Keep records for filing purposes.
Purpose of Remittance
Under FEMA guidelines, funds sent for education, maintenance, or living expenses are permitted. Prohibited uses include gambling, lottery, or investment in restricted sectors. Clearly state the purpose (e.g., 'children's education') during transfer setup.
How to Send — Step by Step
Gather Recipient Bank Details
Collect your child’s full name, bank account number, and correct IFSC code. If the account is for a minor, ensure the guardian is a joint holder if required by the bank. Confirm whether it's an NRO or regular savings account.
Download the Root App
Sign up with Root using your US ID and address. Verify your identity in-app—this step ensures compliance with US and Indian financial regulations and allows faster transfers.
Pro tip: Use your NRI-friendly email and phone number for reliable communication.
Add Recipient and Initiate Transfer
Enter your child’s bank details under 'New Recipient'. Select INR as the payout currency and enter the transfer amount in USD. Root will show the live exchange rate and fees (if any) before you confirm.
Review TCS and Purpose Details
During checkout, select the purpose as 'Maintenance of Relatives' or 'Education' as applicable. If your cumulative transfers this financial year exceed ₹7,00,000, you’ll see a TCS notice—ensure you accept the terms to proceed.
Confirm and Send
Review all details including beneficiary name, account number, IFSC, and purpose code. Once confirmed, Root locks in the exchange rate and processes your transfer. You’ll receive tracking updates via email or app.
Track Delivery
Most transfers reach the recipient’s account within 24 hours. Use the Root app to track status and notify your child to check their bank once the transfer is marked 'Processed'.
Send Money to Your Children in India
Zero fees, interbank rate. Simple and secure with Root.
Send with RootFrequently Asked Questions
Can I send money to my minor child’s bank account in India?
Yes, minors can have bank accounts in India, often as joint accounts with a parent or guardian. Most public and private banks offer this. Ensure the account is active and provide the full name and account number as per bank records.
Do I need to provide proof of relationship when sending to my child?
Root does not currently require documents like birth certificates for standard transfers. However, maintaining records of your relationship may help if questioned for tax or compliance purposes in the future.
How does TCS affect remittances for my child’s education?
If your total remittances to India exceed ₹7,00,000 in a financial year, 5% TCS applies to the amount above that threshold. This includes funds sent for education. The tax is collected at source and may be adjusted during income tax filing in India if applicable.
What bank account types can my child have to receive money?
Your child can receive funds in a regular savings account or NRO account. Root currently supports both. NRE account support is planned for the near future. Avoid sending to loan or overdraft accounts.
Is there a limit on how much I can send to my child?
There is no per-transfer limit on sending money to your child in India. However, transfers above ₹7,00,000 in a financial year trigger 5% TCS. For large amounts, consider timing across financial years to manage tax impact.
Does my child need a PAN card to receive money?
While not always required, Indian banks may ask for a PAN card for high-value transactions or compliance reporting. It’s advisable to obtain a PAN for your child, especially if receiving regular or large transfers.