Frequently Asked Questions About Outward Remittance From India

By Author: Shashank Bhaskar
Total Articles: 63
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Though you might have heard of Outward Remittances, you may be unaware of other things related to it. So, if you send your hard-earned money abroad to support your child's education or help a needy family member, you should have the relative information. To give you a better idea, here are some frequently asked questions about Outward Remittance, shedding light on its various aspects.
What is an Outward Remittance?
Outward Remittance are the transfer of funds by an individual or business in India to a recipient in a foreign country. It serves as a way to send money abroad for various purposes, such as family support, education, investments, etc. The process involves converting Indian Rupees into the currency of the recipient's country, ensuring the funds are accessible and usable.
The procedure is typically governed by regulations prescribed by the country's regulatory body. In the case of India, it is the Reserve Bank of India.
What are the reasons for remitting money abroad from India?
You can send money abroad for the following purposes:

To ...
... support your child's education overseas
To carry out donations for charitable or religious purposes
For business travel
For emigration
To invest in overseas Debt or Equity markets
For gifting
When travelling for medical treatment

What are the different ways to remit money overseas?
You can transfer funds overseas from India in the following ways:

Bank or Wire Transfers

This method transfers funds from one bank to another using the SWIFT network.

Bank Drafts

For this, you need to physically purchase the Bank Draft in the currency of the country you are transferring money.

Online money transfer

It is the simplest method to send money overseas. Several Indians use this method.

International Money Order

This method of international money transfer is affordable and safe. You need to deposit the money order into your Bank Account. It can be cashed at any of the cheque cashing locations.
What are the documents required for transferring money overseas?
For sending funds abroad, you need to provide a valid ID proof, address proof, copy of PAN card, student Visa for educational purposes, etc. However, when you use a reputed bank's International Money Transfer app, you may not need any documents. Instead, the declaration and payment details are collected digitally.
What is Liberalised Remittance Scheme?
LRS refers to a scheme of the RBI. Under this scheme, a resident individual can freely remit up to US Dollars 250,000 per financial year out of India. It can be done for all permitted current account transactions like medical treatment, studies abroad, travel, etc.
What factors to consider when sending money abroad?
When choosing a remittance service to send money overseas from India, carefully consider the following factors:

Exchange rates
Related charges
Transfer speed
Reputation and reliability of the service provider
Security of the transfer
Tax criteria
Customer support provided by the service provider