Best way to transfer money from India to US (my strategy)

[ghost of sparta]

I'm planning to stay in US for the next 1-2 years and looking for ways to transfer money from my Indian account to US account.

I have read all the threads on this topic, many suggested to use remittance services or wire transfers, but I think I have come up with a different simple idea which maybe even better than the ones mentioned.

Here is my idea:
1) [In India] Load money into my Indusind exclusive savings account.
2) [in US] Use my exclusive debit card at an ATM in US to withdraw dollars.
3) [in US] Deposit those dollars into my US bank account

Indusind exclusive debit card has zero atm withdral fee and zero forex conversion charges. So the only charge I would incur is the ATM usage fee levied by the ATM owner bank which is about ($2-$5).
This seems to be the most efficient way to send money to a US account upto Rs.7 Lakh after which you'll incur TCS.

Am I missing something? This seems too good to be true. Please comment if there is any hidden charges that I'm missing.

 

[miles_guy]

Even better, find someone who needs to send inr to India. Pay him INR and ask for usd instead. This is just a thought. I don't know the legality of it though...

 

[bargainHunter]

I'm planning to stay in US for the next 1-2 years and looking for ways to transfer money from my Indian account to US account.

I have read all the threads on this topic, many suggested to use remittance services or wire transfers, but I think I have come up with a different simple idea which maybe even better than the ones mentioned.

Here is my idea:
1) [In India] Load money into my Indusind exclusive savings account.
2) [in US] Use my exclusive debit card at an ATM in US to withdraw dollars.
3) [in US] Deposit those dollars into my US bank account

Indusind exclusive debit card has zero atm withdral fee and zero forex conversion charges. So the only charge I would incur is the ATM usage fee levied by the ATM owner bank which is about ($2-$5).
This seems to be the most efficient way to send money to a US account upto Rs.7 Lakh after which you'll incur TCS.

Am I missing something? This seems too good to be true. Please comment if there is any hidden charges that I'm missing.

Depending on ATM withdrawal limits, the per txn atm cost may hurt.

Also, you will lost out on interest unless you deploy money immediately there. This is notional but actually significant sometimes.

The exchange rates taken by different card networks usually factor in few bps of spread compared to interbank rate. So you do pay something even though not visible.

 

[RAMESH BABU N]

Even better, find someone who needs to send inr to India. Pay him INR and ask for usd instead. This is just a thought. I don't know the legality of it though...

This is what is commonly called HAWAALAA.
And, it is illegal.

 

[cardy]

This is what is commonly called HAWAALAA.
And, it is illegal.

And should be refrained from these activities

 

[RAMESH BABU N]

When you say 1-2 yrs.... Your stay in USA will not be as a tourist. And, you will not be a resident here - legally - you will be an NRI.

So, my suggestion/advice will be :

Focus on being on the right side of the USA law during your stay. And, follow their rules strictly. You also need to go n get guided by our own rules related to NRIs.

Focus less on saving a few chips here n there.

During my 32+ yrs of banking, I have seen a number of bright n young chaps doing silly things n getting banished from their dream destinations.

All the best in your exploration.