Outward Remittance of Money Transfers from India
Sending/Transferring money in foreign exchange, by a resident in India or an NRI to a beneficiary situated within or outside the country (except for Nepal and Bhutan) is termed as Outward Remittance.
Maximum Limit of Sending money from India to US & Other Countries was earlier fixed at $1,00,000 per year. This limit was however increased to $2,00,000 per financial year (April-March) by RBI in the year 2007 under Liberalized Remittance Scheme.
Under Liberalized Remittance Scheme, resident individuals can acquire or hold
- immovable property
- shares or debt instruments
- any other assets outside India
- foreign currency bank accounts
without prior approval of the Reserve Bank.
The remittance facility under the Scheme is not available for the following:
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;
ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counter party;
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;
iv) Remittance for trading in foreign exchange abroad;
v) Remittance by a resident individual for setting up a company abroad**;
vi) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;
vii) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as ‘non co-operative countries and territories’, from time to time as available on FATF website www.fatf-gafi.org. Or as notified by the Reserve Bank; and
viii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
How to Send Money Outside India?
There are few other ways of Sending money from India to USA or Abroad.
Paypal – Send money using Paypal to anyone, anywhere, at anytime, by simply using your e-mail address, password and PAN card. Opening a paypal account is really very simple to do and also a very easy way to send money online. There’s no filling out of paperwork required. The only disadvantage is that the person you’re sending money to must have a paypal account as well.
In order to send money online you need to add money to your Paypal India account using your bank account or a credit card which you have linked to your account and paypal will then transfer the funds to the account of the person whom you are sending money. It takes little or no time at all to complete this task. Paypal seems to be the easiest way to send money abroad at the moment as long as both parties have Paypal accounts.
SWIFT Wire Transfer – SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It is the most predominantly used method of transferring funds from India to USA or other countries. SWIFT is an electronic method of transfer and the funds reach the recipient bank within a couple of hours. All the State Bank group banks and other major banks offer this facility.
For sending money using SWIFT you need the following details. Bank Name, Bank Address, Bank Account number, Full name of the receiving person, SWIFT Code of receiving bank branch and Receiving bank’s Routing Number details.
ICICI Bank’s Quick Remittance – offers you a really easy way to send money abroad outside India: With quick remittances, and as huge known presence in India as well as great communication between the Bank Networks abroad, ICICI is sure to be a great way to transfer your money from India to your loved ones. You have two options to choose from: Foreign Currency Demand Draft or a Wire Transfer. With either choice when sending money you will have to choose your purpose for sending it. If you don’t have an account with ICICI then you need to show proof of identity as well as proof of address.
Bank Cheque/Bank Drafts/Bankers Cheque – First, pay a visit to your Bank and tell them you want a check in a different type of currency. You’ll need to get a letter from your bank saying that you have an account (Checking or Savings) with them. Once you have the letter in your possession you’ll most likely have to go to another Branch of your Bank that deals with foreign currency. From there, you’ll give in the letter to them and fill out a form. After you fill out the form you’ll have to wait to be given the draft.
Make sure to bring you passport and your bank account passbook along with you. Don’t forget that you’ll also have to tell the bank why you are sending money outside of the country.