India’s students lost ₹1,700 crores in hidden bank fees, nearly three times the cost of Chandrayaan‑3, reveals Redseer x Wise report

New research highlights growing need for transparency on exchange rate markups as more Indian  families invest in international education

Mumbai, India – July 17, 2025: Behind every Indian student studying abroad lies a family making extraordinary financial sacrifices. New research reveals that these families paid a substantial hidden price: ₹1,700 crore (USD 200 million) was lost in 2024 alone to exchange rate markups and banking fees. To put that figure in perspective, it’s close to three times the cost of India’s Chandrayaan-3 mission and could otherwise cover months of living expenses, additional courses, or emergency funds for thousands of students. 

Findings from a report by Wise, the global technology company building the best way to move and manage money around the world, and Redseer Strategy Consultants, highlight a key opportunity: as families are set to double their spending on international education by 2030, there’s a significant potential to help students pursue their dreams more affordably. 

Today, over 95% of India’s annual student remittances, estimated at ₹85,000 to ₹93,500 crore (USD 10–11 billion) are routed through traditional banks, which typically charge 3-3.5% markups on exchange rates and take 2–5 days to process.

The hidden education cost hurting families - and the change needed

A typical family sending ₹30 lakh annually may lose ₹60,000–75,000 to hidden markups, enough to cover several months of living expenses or fund additional courses. Across the 760,000 Indian students heading abroad, this amounts to a significant hit to their pocket.

As families increasingly recognise these hidden costs, they're moving towards transparent, digital-first services like Wise, which uses the mid-market rate as seen on Google with no markups, and sends international payments in the market-leading time of 12 hours¹ with transaction tracking. Education-related payments now make up 75% of Wise's volume from India since launching in 2021. 

To further respond to this need, Wise will soon enable families funding education through loans to benefit from the TCS exemption under India's updated tax regulations — a development that will provide additional relief.

The scale of India's educational transformation and ambitions is unmatched. In 2024, India overtook China as the largest source of students in the US, and currently make up 30-35% of all international enrollments in leading destinations such as the US, UK, Canada, Australia and Germany – a big surge from just 11% a decade ago. As these students continue reshaping the global education landscape, they’re voting with their wallets and choosing solutions that empowers their ambitions.

“The whole process felt overwhelming at first, but my consultant made things easier, the education loan helped cover costs, and using the right forex service saved me money. Now, I'm focused on building my career here,” said Priyanka Agarwal, an Indian student in the US who experienced firsthand the impact of hidden banking fees.

"My family usually sends money through bank transfers, but waiting 2 to 3 days can be frustrating, especially in urgent situations. That's when I switched to instant remittance platforms - they’re quick, easy and hassle-free," explained Harusha, another US-based Indian student.

Taneia Bhardwaj, South Asia Expansion Lead at Wise, said: “Indian students deserve payments that keep up with their ambitions, not one that slows them down.  Waiting five days for a transfer or unexpected fees aren’t just frustrating — they can disrupt critical moments in their lives.”

She continued: “For parents who are making big sacrifices to support their children’s dreams, being hit with hidden fees in the form of exchange rate markups is both frustrating and unfair. The stories and the sheer scale of money lost to opaque pricing should be a wake-up call. That’s why the financial industry should work together toward greater transparency, so families and students can put every rupee towards what truly matters: their education.” 

For families planning education abroad, Wise recommends:

• Compare exchange rates. Look up the mid-market exchange rate on Google and compare it with your provider’s rate. The best providers use the mid-market rate with no markup.

• Don’t just look at advertised fees. Some providers can advertise no-fee or low fee transfers but there will be hidden costs in other places. Make sure to check the exact amount you’re paying and what the recipient will be receiving, not just the upfront fee. 

• Eliminate stress by choosing providers that offer transaction tracking capabilities and fast transfer speeds.

About Redseer Strategy Consultants

Redseer Strategy Consultants is a leading strategy consulting firm that has been at the forefront of shaping the new age business landscape in India for the past 15 years. Redseer’s relentless focus on innovation, deep consumer understanding, and strong entrepreneurial mindset have established it as the go-to advisory firm for new-age consumer-focused businesses. Redseer is the # 1 advisor to new-age firms planning IPO strategy, a leading advisor to PE on making the right investment calls and works closely with the founders and board on long-term sustainable businesses. Redseer and its partner OC&C with over 1000+ consultants, create a positive impact on their clients from 22 cities across 5 continents.

[1]  70% of Wise transfers from India arrive within 12 hours