Sending money from the UAE to India

The dirham is pegged to the US dollar, so the AED-INR rate moves with the dollar against the rupee rather than with anything happening in the Gulf. What you can control is how much of each transfer the provider keeps.

The two costs in every transfer

Every provider charges in two ways: a fee you see when you pay, and a margin hidden in the exchange rate, which is the gap between the mid-market rate and the rate you are given. Exchange houses often advertise “zero fee” transfers to India and take their cut through the margin instead. The only fair comparison is the amount credited in rupees for the same number of dirhams, which our INR converter shows alongside the table above.

Exchange houses or an app

The UAE is unusual in having a large network of exchange houses, such as Al Ansari Exchange, Lulu Exchange and Al Rostamani, alongside the banks and apps. Their branches sit in malls and commercial areas, they take cash, and most now have apps too. On the AED-INR corridor their rates are often competitive, and they can credit major Indian banks the same day.

Apps such as Wise and Remitly work differently. Wise gives the mid-market rate and shows its fee up front; Remitly’s first-transfer offers are often hard to beat. Neither needs a branch visit. See our Wise review and Remitly review .

Many UAE-based NRIs use both: an exchange house when they want to pay in cash or need a specific Indian bank credited the same day, and an app for regular transfers where they want to see exactly what they are paying. Banks such as Emirates NBD, Mashreq and ADCB let you send from their apps too, which is convenient on salary day, though their rates rarely beat the specialists.

Paying in and receiving

If your salary is paid through the Wage Protection System into an exchange-house card, you can usually send money from that card directly, without moving it to a bank account first.

At the Indian end, money you earn in the UAE belongs in an NRE account, where the interest is tax-free in India and can be sent back abroad freely. NRO accounts are for income that arises in India, such as rent. Our NRI banking guide explains both, and the UAE NRI hub covers what India still taxes while you live in the Emirates.

Because the dirham tracks the dollar, a rate alert on USD-INR is as useful as one on AED-INR. For a large transfer, a few days’ difference can matter more than the choice of provider.

Rates and fees change often, so compare current figures before you transfer. NRIWallah may earn a commission from partner links; see how we make money . How providers are rated is set out in our methodology .