How digital integration and exchange rates boost UAE-India money transfers

India is the world’s largest recipient of remittances, with the UAE among its most important sources. A large Indian workforce, strong trade links and digital payment infrastructure have made money flows between the two countries faster, more frequent and increasingly diverse in purpose.

India’s inward remittances rose to a record $135.46 billion (Dh497 billion) in 2025, according to the Reserve Bank of India, with the UAE and other GCC countries accounting for a significant share. What was once largely for family support is now also linked to business activity and trade.

A corridor that has matured

Exchange rates drive remittances

Over the past year, currency movements have accelerated transfers from the UAE. With the rupee currently around ₹24.8 to the UAE dirham, expatriates are able to take advantage of favourable rates, boosting transaction volumes.

Digital payments

Technology continues to drive the UAE-India remittance corridor. “Payment infrastructure integration; UPI with Aani and RuPay with Jaywan will materially reduce friction, cost and settlement time,” Ahamed says.

“The corridor generated an estimated $22 billion last year with average transaction values rising 12–15 per cent. Digital channels now dominate particularly among the Indian diaspora,” he says. “End-of-month spikes are flattening as instant payments enable smaller, more frequent transfers.”

Exchange houses in the UAE are accelerating growth through omnichannel strategies, competitive pricing and zero-fee digital campaigns. “Technology has reset expectations. Customers now demand instant credit, real-time tracking, seamless e-KYC onboarding and minimal branch interaction, driving continuous digital investment.” n

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Adeeb Ahamed

Managing Director, LuLu Financial Holdings