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Outward Remittance : How do I Send Money abroad from India ?

This is how you can remit money from India to UAE, USA, UK, Australia, Europe, Malaysia , Singapore, Dubai, Canada, Germany, Spain & other countries except Bhutan and Nepal.

Resident individuals in India can use Nationalized Banks in India to transfer money ( International Outward Remittances) to a beneficiary situated outside the country (except for Bhutan and Nepal) as approved under FEMA (Foreign Exchange Management Act). It is mandatory for resident individuals to have PAN number for sending outward remittances.

The Money can be sent to abroad countries using the following modes:

  1. Wire Transfer/ Transfer through SWIFT – ( If SWIFT facility is not available, your remittance can be effected through telex ).
  2. Foreign Currency Demand Draft – You can send the Demand Draft to the beneficiary, who receives payment from drawee bank on presentation.

According to RBI’s Foreign Exchange Management Act(FEMA) you can remit money abroad upto USD 200,000/- during a financial year.

Note : You cannot use services like Western Union, Ikobo, Xoom & MoneyGram to send money from India to abroad. These services are not allowed legally by the government (Reserve bank of India). You can receive money in India using these services but cannot send money out of India.

Currently only banks are permitted to implement outward remittances and inward remittances are limited in India.

You can do an outward remittance by the following procedure:

  • Submit an application with the requisite documentation
  • Submit your account number(If you have account with the respective bank)
  • Amount to be remitted
  • Provide the Beneficiary details
  • Choose the mode of remittance.

Bank like ICICI, HDFC etc has Outward Remittance service to remit money outside india.

You can remit money for any of the following reasons

  • Gift & Donation
  • Employment abroad
  • Emigration
  • Education abroad
  • Maintenance of close relative abroad
  • Medical treatment abroad
  • Maintenance expenses of patient
  • Business Travel
  • Private visit to any country

Outward Remittance is prohibited for the following reasons

  • For travel to Nepal and/or Bhutan;
  • Forex transactions with a person resident in Nepal or Bhutan;
  • Remittance out of winnings from lotteries;
  • Remittance of income from racing/riding etc. or any other hobby;
  • Remittance for purchase of lottery tickets, banned/prescribed magazines, football pools, sweepstakes, schemes involving money circulation, securing prize money / awards etc;
  • Payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies;
  • Remittance of dividend by any company to which the requirement of dividend balancing is applicable;
  • Payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco;
  • Payment related to “Callback services” of telephones;
  • Remittance of interest income on funds held in Non-Resident Special
  • Rupee Scheme Accounts.

Outward Remittance by NRI/PIO :

A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) may remit an amount up to USD one million, per financial year, out of the balances held in his Non-Resident (Ordinary) Rupee (NRO) account / sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement)

Outward Remittance for students :

Students going abroad for studies are treated as Non- Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA.

  • Up to USD 100,000 from close relatives in India on self declaration towards maintenance, which could include remittances towards their studies also and
  • Up to USD 1 million per financial year, out of sale proceeds of assets / balances in their account maintained with an AD bank in India.

Note: Outward remittances (Foreign currency money transfers) from India are subject to applicable restrictions under FEMA 1999 (Foreign Exchange Management Act .

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