PayPal is one of the fastest ways of transferring money from a US bank account to an Indian bank account. Although the exchange rate that you get is not as good as some of the other services, the speed is much better. You can get the money transferred within a week.
Here is what you need to do in order to use PayPal to transfer money to an Indian account.
- Add your American Bank Account to your PayPal account: Assuming you are going to transfer funds from an American bank to an Indian bank, the first thing is to add your US bank account to your PayPal account. This can be done by going to: My Account > Profile > Add / Edit Bank Account.
- Verify your Bank Account: After you add your bank account, PayPal transfers two small amounts to it. PayPal will then ask you to enter these two amounts in your PayPal account so that they can verify that the bank account belongs to you. PayPal will eventually withdraw the money that it credited to your account, so if you were planning on building a fortune using PayPal verification cents, forget about it.
- Add your Indian Bank Account: Next, you will have to add your Indian bank account where you will send the money. In order to do that you need to go to the same path again; My Account > Profile > Add / Edit Bank Account. Select India from the list of countries in the drop-down and enter your bank account details. PayPal needs you to enter the bank IFSC code which can be found on this RBI link.
- Add Funds and Withdraw Funds: Once you have the bank accounts set up, you can use the “Add Funds” and “Withdraw” links from “My Account” tab in order to first add money to your PayPal account and then remit it to India.
The initial set up can take some time because of the verification process, but once you are done, the transfer works fairly smoothly. Remember, the exchange rate that you get through PayPal is usually a little lower than what you get from other services, but the speed and security is top notch.