Canada Is Becoming a Bigger Part of India’s Remittance Story

For millions of families, sending money to India isn’t simply a financial transaction. It can help cover household expenses, education, medical care, property costs, major celebrations and support for parents or relatives.

Collectively, these individual transfers have made India the largest recipient of international remittances in the world.

The latest comprehensive survey from the Reserve Bank of India shows another important change. India received approximately US$118.7 billion in remittances during the 2023 to 2024 fiscal year, but the countries sending that money are changing.

Advanced economies now account for a larger share of India’s inward remittances than Gulf countries. Canada is part of that shift.

According to the RBI survey, Canada accounted for approximately 3.8 percent of India’s inward remittances in 2023 to 2024. That was up from approximately 1.6 percent in 2020 to 2021.

Canada’s share has more than doubled in just a few years.

That change reflects the growing financial connection between Canadians and people in India. It also creates a greater need for money transfer services that understand what Canadian senders expect.

India’s remittance map is changing

For decades, India’s remittance story was closely connected to workers living in Gulf countries. The United Arab Emirates, Saudi Arabia, Kuwait, Qatar and Oman continue to play a major role, but they no longer tell the entire story.

The RBI’s latest remittance findings show that advanced economies have become increasingly important. The United States remains India’s largest remittance source, while the United Kingdom, Singapore, Canada and Australia now contribute a growing share.

This change is connected to broader migration patterns.

More Indian professionals, students and families have established themselves in countries such as Canada, the United States, the United Kingdom and Australia. Many build long term careers and permanent lives abroad while continuing to maintain close financial connections with India.

The result is a remittance market that is becoming more diverse, more digital and more closely connected to established immigrant communities.

Canada is no longer a minor remittance source

Canada’s increase from 1.6 percent to 3.8 percent may appear small beside the much larger American and Gulf markets. However, the pace of growth is significant.

Canada’s Indian population has grown substantially over the past several years. Indian Canadians are now deeply represented across business, technology, healthcare, transportation, construction, education and many other parts of the economy.

Their financial relationships with India haven’t disappeared after moving to Canada. In many cases, those relationships have become more structured.

Money may be sent regularly to support parents. It may cover school fees for a family member, help with medical expenses, contribute to home maintenance or pay for an important celebration.

These aren’t always large transfers, but they’re often important ones.

As more people send money from Canada to India, customers will expect services designed around Canadian banking, Canadian identification requirements and clear information about the Canadian dollar to Indian rupee exchange rate.

Customers expect more than a way to move money

The remittance industry has changed considerably from the days when sending money meant visiting a physical counter, completing a paper form and waiting without knowing where the transfer was.

Today’s customer expects to manage most of the experience from a phone or computer.

That includes creating an account, completing identity verification, entering recipient bank information, reviewing the exchange rate and checking the transaction status.

Convenience is important, but transparency may be even more important.

Before confirming a transfer, a sender should be able to understand three basic numbers:

• How many Canadian dollars are being sent
• How much the transfer will cost
• How many Indian rupees are expected to reach the recipient’s bank account

If any of those numbers are difficult to find, the customer doesn’t have a complete picture of the transaction.

The exchange rate can matter more than the advertised fee

Transfer companies often compete by advertising a low fee, but the fee is only one part of the cost.

The Canadian dollar to Indian rupee exchange rate determines how many rupees are created from each Canadian dollar. A service with a low advertised fee may still provide less value if it uses a less favourable exchange rate.

For example, two services may each charge a similar transfer fee, but the final amount deposited into the recipient’s account can still be different.

That is why customers should look at the expected recipient amount rather than focusing only on the fee.

The Bank of Canada publishes daily average exchange rates, including information for the Indian rupee. These rates are useful for understanding general currency movements, but they aren’t necessarily the same rates offered by a money transfer provider.

The rate that matters to the customer is the rate displayed and confirmed for the actual transfer.

Exchange rates can move during the day due to market conditions. For that reason, permanent articles or advertisements shouldn’t promise a fixed CAD to INR rate unless it is part of a clearly defined promotion with complete terms.

Digital transfers still require accurate information

Technology has made international transfers easier, but it hasn’t removed the need for accurate information.

When money is being deposited into an Indian bank account, the sender may need to provide the recipient’s full legal name, bank name, account number, branch information and an applicable banking code such as an IFSC.

The required information can vary depending on the bank and transfer arrangement.

Even a small error can create a problem. A misspelled name, incorrect account number or missing banking code may cause a delay or prevent the deposit from being completed.

Senders should confirm the recipient’s information directly with them before submitting the transaction. It is better to spend an additional minute checking the details than to spend several days trying to correct them later.

Identity verification is part of a secure transfer experience

Customers sometimes see identity verification as an unnecessary inconvenience. In reality, it is an important part of operating a legitimate Canadian money transfer service.

Canadian money services businesses must follow identity verification, recordkeeping and transaction monitoring requirements. These responsibilities help reduce fraud, money laundering and the misuse of financial services.

FINTRAC provides the Canadian compliance framework for money services businesses and other reporting entities.

For the customer, identity verification may involve providing personal information and an accepted government issued photo ID. Additional documentation may be requested depending on the transaction, its purpose and the level of review required.

The goal isn’t to make sending money difficult. The goal is to confirm who is using the service and help protect the financial system.

As the Canada to India corridor grows, customers should expect verification and security to remain part of the process.

Why a digital transfer might still be delayed

A digital money transfer can move efficiently, but no responsible provider should suggest that every transaction will always be completed instantly.

A transfer may be delayed because:

• The sender’s payment hasn’t been received or matched
• The recipient’s name doesn’t match the bank account
• The bank account number or IFSC is incorrect
• Additional identity information is required
• The transaction requires a compliance review
• The recipient bank is closed for a holiday
• The receiving bank requires additional processing time
• A banking or payment partner is experiencing a technical interruption

Clear status updates are therefore an important part of the customer experience.

A sender should be able to see whether a transfer is waiting for funding, being processed, under review or completed. If additional information is required, the next step should be explained clearly.

Tracking doesn’t make every transfer immediate, but it removes much of the uncertainty.

A growing corridor creates room for a better experience

Canada’s increasing share of India’s inward remittances is more than an interesting statistic.

It shows that the financial connection between the two countries is growing and that Canadian senders are becoming a more important customer group.

These customers need a transfer experience designed around how they live and manage money in Canada.

They want to create an account digitally, verify their identity, review the CAD to INR rate, understand the fee and see how much will be deposited into the recipient’s Indian bank account.

They also want to save recipient information, track the transfer and access their transaction history without having to contact support for every update.

This is the environment in which Remitra Pay is now operating.

Remitra Pay gives Canadians a clear and convenient way to send money directly to eligible bank accounts in India and other supported countries. Customers can review the exchange rate, transfer fee and expected recipient amount before confirming, then follow the transaction from their account.

The purpose is simple: provide clearer information and make an important financial task easier to manage.

The Canada to India connection will continue to matter

Remittances rarely make headlines in the same way as major investments or trade agreements, but their impact is deeply personal.

Every transfer represents a connection between someone in Canada and someone in India. It may help pay a bill, support a parent, cover school costs or respond to an unexpected need.

The RBI’s findings show that Canada is becoming a larger part of this story.

As that connection continues to grow, customers will expect money transfer services to provide more transparency, better digital tools and a clear understanding of the complete transaction.

Remitra Pay is now live, giving Canadians a new way to send money directly to eligible bank accounts in India.

Create your Remitra Pay account, check the current CAD to INR rate and start your transfer today.