{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/outward-remittance-rules-you-need-to-know\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/outward-remittance-rules-you-need-to-know\/","headline":"Outward Remittance Rules You Need to Know","name":"Outward Remittance Rules You Need to Know","description":"Whether you want to send funds abroad to your loved ones, pay your child\u2019s college tuition fees, or repatriate your funds as an NRI, you can do all of this easily via outward remittance. Since it takes place on a secured banking network, this remittance service is by far the safest way to send money...","datePublished":"2021-12-06","dateModified":"2024-08-01","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/outward.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/outward.jpg","height":400,"width":1060},"url":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/outward-remittance-rules-you-need-to-know\/","about":["Manage your Finance"],"wordCount":1087,"keywords":["international money transfer","Outward Remittance","send money abroad","to send money abroad digitally"],"articleBody":"Whether you want to send funds abroad to your loved ones, pay your child\u2019s college tuition fees, or repatriate your funds as an NRI, you can do all of this easily via outward remittance. Since it takes place on a secured banking network, this remittance service is by far the safest way to send money abroad.However, before you remit your money, there are several rules attached to outward remittance that you must know to avoid any mishaps or misunderstandings.In India, all the laws related to outward and inward remittances fall under the jurisdiction of the Foreign Exchange Management Act (FEMA). Apart from ensuring the money sent abroad is used only for legal purposes, this act helps the RBI stabilise the local currency markets.Wondering what these rules are? Well, let\u2019s take a look.The RBI Guidelines for Outward RemittancePurpose of RemittanceThe Liberalised Remittance Scheme (LRS) under FEMA allows all Indian residents to send money abroad without any special permissions, provided that the purpose of transfer falls under one of these conditions:Overseas education or living expenses for students abroadTourism and travel costs, including business travelFunding medical treatmentPurchasing property or shares overseasSupporting family members abroadSending gifts or donationsEmigrationParticipation in international conferences etc.The scheme also prohibits the following reasons for international money transfer:Purchase of products under Schedule 2 of the Foreign Exchange Management Rule 2000, including the purchase of banned magazines, lottery tickets, sweepstakes, etc.Purchase of FCCB (Foreign Currency Convertible Bond) issued by an Indian enterprise in the market overseas, and trading in foreign exchangeDonations to entities at risk of conducting acts of terrorismLimits on Foreign Money TransferAs per the RBI guidelines, there\u2019s an upper limit on the amount you can outwardly remit. Moreover, these NRIs and Indian residents have different transfer restrictions. Let\u2019s understand them one by one.A. Foreign Money Transfer for Indian ResidentsUnder the LRS, Indian Residents can remit up to $2,50,000 in a financial year. This is a combined limit, meaning one can perform multiple international money transfers provided they are under this limit. Additionally, they must also furnish their PAN card, along with other KYC documents, while making a foreign fund transfer. Also, note that the documentation involved varies according to the purpose of remittance.B. Outward Remittance for NRIsNRIs can remit funds abroad from their NRE\/NRO\/FCNR accounts in India. While the NRE and FCNR accounts have no remittance limits, NRIs with an NRO account can only remit up to $1 million in a given financial year. Moreover, NRO account holders need to submit their tax certificates under forms 15CA\/15CB, Form A2, and a copy of their PAN card to make an outward remittance.Methods of International Money TransferPayPal and other virtual payment sites are not RBI-approved for international fund transfers. They can only be used to pay invoices raised by businesses located abroad. Being business payments, these don\u2019t fall under the LRS.To send money abroad, one must approach institutions authorised by RBI, which include banks and money changers having an AD-II Category License (Authorised Dealer – II). The payment to the bank or money changer must be made via your personal savings account by online bank transfer only. In other words, cheque, card or cash payment is not allowed. Further, the money can be remitted abroad only via wire transfer or demand draft.Final WordAdhering to the RBI guidelines is key to ensuring your international money transfer is conducted without any hassles.But, choosing the right bank partner is crucial too. Why? Because international fund transfers are easier (and quicker) when the bank has an extensive network.At IndusInd Bank, you can benefit from our worldwide reach and transfer funds in 16 different currencies. And that\u2019s not all! You can even transfer the funds online through our online portal IndusForex. Want to learn more about our services? Visit the IndusInd Bank website today!Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.Share This:"}