International Money Transfers from India - Send Money Abroad

Increasing globalisation has made our world smaller and offered a plethora of opportunities to study and work abroad. Aspiring Indians are taking the big leap by moving to another country and exploring new avenues. While your loved ones are away in a foreign country, they may take time to adapt to a new place, and later may require additional funds, especially in case of a medical emergency. Or your close relative or friend on an international visit may need financial help due to certain unforeseen events.You can send money from India with the help of convenient money transfer platforms. The Reserve Bank of India (RBI) allows this process, known as outward remittance, based on certain foreign regulations. The RBI and the Foreign Exchange Management Act, 1999 (FEMA) regulate outward remittances.Also, the banks or money transfer institutions should have an AD-II category license.

• Under the Liberal Remittance Scheme (LRS), if you are sending money from India as an individual or a corporate entity, you can avail the Liberal Remittance Scheme that levies lesser restrictions on Indian nationals and permanent residents. Through this scheme, you can send up to $250,000 from India for business visits, leisure visits, gifts or donations, overseas education and employment, medical and other necessary expenses of relatives abroad.
• For outward remittance process, you need to provide your Permanent Account Number (PAN) card copy, mention the purpose of remittance in the A2 form and also update Form 15 CA or Form 15 CB (based on the taxable amount). Look for these forms on official websites of the income tax department and National Securities Depository Ltd. or your bank’s website.
• Keep income tax assessments and filed returns ready in case you don’t have an updated bank account.
• Outward remittance facility is offered by banks, money changers, few travel companies and non-banking financial companies.
• Take into account the cost of the transfer, exchange rate and the time take to transfer. Look for money transfer channels offering customised alerts on foreign exchange and options to set a transaction as per your desired exchanged rate.
• Sending money from India through any appropriate channel takes 48-72 hours for online transfers and few days for cheques and demands drafts.
• Before you avail outward remittance services, research channels offering more accessible documentation, zero commission and direct credit into the beneficiary account.

However, outward remittance is not allowed for the purchase of foreign currency convertible bonds or lottery tickets. Now that you have learnt how to send money from India make sure you avail this service only for the legal purposes of remittance. Transfer money to your family and friends abroad only through trusted channels that follow government compliances.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.