Banking in Canada: Guide for Indian Immigrants (2026)

India is consistently Canada's top source country for new permanent residents — with over 100,000 Indians receiving Canadian PR annually through Express Entry, PNP, and family class. If you're moving to Canada from India, understanding the banking system will save you time, money, and headaches. This guide covers everything from how Canadian banks compare to SBI and HDFC, to the best way to send money back to India.

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Indian Banks vs. Canadian Banks

Account Structure

India: SBI, HDFC, ICICI, Axis, and Punjab National Bank dominate. Savings accounts are the primary everyday account with mandatory minimum balances. UPI (PhonePe, Google Pay, Paytm) revolutionized digital payments.
Canada: Chequing accounts are used for everyday spending (no UPI equivalent, but Interac e-Transfer is similar). Savings accounts earn interest. No mandatory minimum balance at most Canadian banks.

Digital Payments

India: UPI is dominant — instant bank-to-bank transfers using UPI ID. QR codes everywhere. Very advanced digital payment ecosystem.
Canada: Interac e-Transfer is the Canadian equivalent of UPI but requires email/phone instead of UPI ID. Tap-to-pay (contactless) is very common. Canada doesn't have QR code payments at scale yet.

NRE/NRO Accounts

If you had NRE/NRO accounts in India: When you become a Canadian tax resident, you should convert your NRE account to an NRO account (NRE accounts are only for Non-Resident Indians who are not tax residents elsewhere). Consult your Indian bank and a cross-border tax advisor about your FEMA compliance obligations.

CIBIL vs. Canadian Credit Score

India: CIBIL score (300-900) is used by Indian lenders. HDFC and SBI check your CIBIL for loans and credit cards.
Canada: Equifax and TransUnion credit scores (300-900 range). Your CIBIL score does NOT transfer to Canada. You start with zero Canadian credit history and must build it from scratch.

Documents Indian Immigrants Need for Banking

Indian passport — your primary ID
Immigration document — PR card, COPR, work permit, or study permit
SIN — apply at Service Canada on your first or second day
Canadian address proof — rental agreement, employer letter, or hotel receipt

Best Banks for Indian Newcomers

KOHO: Open with passport only, no SIN needed — perfect for Day 1 after landing
RBC: Strong newcomer program, many branches near Indian communities in Brampton, Scarborough, Surrey. Hindi-speaking staff at select branches.
TD Bank: Excellent newcomer package, large branch network. Good newcomer credit card option.
Scotiabank: StartRight program for newcomers. Good for building credit quickly.
CIBC: Popular in Ontario with Indian diaspora communities.

Indian Communities in Canada

Indian-origin Canadians number over 1.8 million, with major communities in:

Brampton, Ontario: Often called "Bramptonistan" — largest concentration of South Asian Canadians
Surrey, BC: Large Punjabi community, many Sikh Canadians
Mississauga, Scarborough (Toronto): Tamil, Gujarati, and diverse South Asian communities
Calgary: Growing Indian community, especially Gujarati and Punjabi
Edmonton: Strong South Asian community

Sending Money to India from Canada

The CAD to INR corridor is one of the most competitive for remittances. Best options:

Wise: Best exchange rates, typically 0.5-1% fee, delivers to Indian bank accounts within 1-3 business days
Remitly: Fast (sometimes within hours), competitive rates for INR, good app
Western Union: Cash pickup at various locations across India
InstaReM (now Nium): Good for larger amounts
Canadian bank wire: Avoid — $15-25 fee plus exchange rate markup of 3-5%

Tax Tip for Indian Canadians: Once you become a Canadian tax resident, you must report your worldwide income to CRA. If you have investments, fixed deposits, or rental income in India, these must be reported on your Canadian tax return. Consult a cross-border tax specialist familiar with Canada-India tax treaty provisions.

FHSA for Indian-Canadian Homebuyers

Many Indian immigrants come to Canada with homeownership as a major goal. Canada's First Home Savings Account (FHSA) lets you save up to $8,000/year ($40,000 lifetime) tax-free for a first home purchase. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying purchase are tax-free (like a TFSA). Open one as soon as possible after arriving to maximize contribution room.

Related Guides

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