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Last checked 16 October 2026 against Consumer NZ, Inland Revenue (IRD) and the Reserve Bank of India (RBI). Exchange rates and provider fees change daily, so this guide shows how to compare, not a rate to rely on. General information, not financial or tax advice.
If you live in New Zealand and have family in India, or you are moving and need to shift savings, you will send money across the border more than once. The difference between a good transfer and a poor one can be a few hundred dollars on a NZ$10,000 transfer. This guide covers how fees really work, what Consumer NZ found when it tested providers, and the tax and Indian rules to check first.
The three costs in every transfer
Consumer NZ’s guide to international money transfers (updated September 2025) lists the costs that matter:
- Exchange rate. The rate the provider gives you compared with the real market rate. This is often the biggest cost and is easy to miss.
- Transfer fee. Consumer NZ says online banking fees range from $0 to $5, and can be up to $30 in a branch.
- Recipient fees. The receiving bank may take a charge when the money arrives, depending on how the fee is shared.
A bank can advertise no fee and still give a weak exchange rate. Another can show a good rate and charge a high fee. Compare the final amount that arrives, not the headline fee.
What Consumer NZ found for India
Consumer NZ tested how much would arrive in India when sending NZ$10,000 through the five biggest banks and four providers (Wise, XE, OFX and Remitly). For India, it said XE offered the best value, with ₹516,001 arriving in its test, and Wise was a close second at ₹515,018. It reported that using XE instead of Westpac could have given you NZ$259 more in rupees on NZ$10,000. It also found the average foreign exchange provider gave better value than the average bank for India.
That test is a snapshot. Rates move every day, and rankings can change, so run your own comparison on the day you send. Use at least three quotes for the same amount, the same delivery method and the same date.
How to compare quotes
- Decide the amount and the direction (NZD to INR, or the reverse).
- Get quotes from your bank and at least two online providers at about the same time.
- For each, write down the exact rupee amount the recipient will receive after all fees. Ask whether the recipient’s bank will charge anything.
- Check how long it takes and what identity checks you need.
- Check who the provider is and read its terms for limits and refund rules. Our general suggestion is to look for a provider that is clearly registered or licensed in New Zealand; check the current requirements with your bank or the provider, as we have not verified them for this guide.
- Keep the receipt and confirmation for your own records.
Identity and source of funds
Banks and providers may ask where the money came from, especially for large amounts. What they ask for varies, so confirm with them. Keeping payslips, sale documents, bank statements and any gift letters ready is a sensible habit. As general guidance (not a rule from the sources above), it is usually simpler to send what you need in one go and keep the paperwork, rather than splitting transfers into small pieces. Check current requirements with your bank or provider.
Tax basics for people in New Zealand
IRD says that as a New Zealand tax resident you generally pay tax on your worldwide income, which includes income from India such as interest, rent and dividends (IRD: tax for New Zealand tax residents).
New migrants may get relief. IRD’s temporary tax exemption can make most overseas income exempt for about 4 years if you are a transitional tax resident. To qualify you must be a new migrant or a New Zealander returning home, have become a tax resident on or after 1 April 2006, and not have been a tax resident in the 10 years before. The exemption covers overseas interest, dividends, foreign investment fund income and rent. It does not cover income from overseas employment or personal services. IRD also lists actions that end the exemption early, so read the rules before you file a return that includes exempt income.
Moving money is not the same as earning income. A transfer of your own savings is not income by itself. The tax question is what the money earns while it sits in India or New Zealand. If your situation includes property, a business or foreign pension funds, ask a tax adviser.
Rules on the Indian side
If you are sending from India as a resident individual, the RBI says the Liberalised Remittance Scheme allows remittances of up to USD 250,000 per financial year (April to March) for permitted current or capital account transactions (RBI FAQ). The RBI’s own pages describe the permitted purposes, such as private visits, gifts, maintenance of close relatives abroad, emigration and studies abroad. Banks apply the rules and may ask for forms. Rules for non-resident Indians, including accounts such as NRO and NRE, are different and are not covered here. Check with your Indian bank.
Common mistakes
- Choosing by the lowest fee instead of the amount received.
- Sending from a branch when online transfer would cost less.
- Not asking about recipient fees.
- Using an unknown provider you have not checked because it offers a slightly better rate.
- Forgetting to keep records for tax and for visa or bank questions.
If you are planning a move and thinking about long-term savings, see our guides to PR in New Zealand for Indians and gold in New Zealand.
This article is general information, not financial, tax or legal advice. Confirm details with IRD, the RBI or a licensed adviser.
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