Sending money abroad has developed into a regular requirement among Indian citizens because of rising globalization. The correct method of transferring funds from India to international destinations remains essential for both supporting relatives abroad and funding education overseas and foreign assets or business transactions. India has established strict remittance regulations which allow you to select from various convenient methods to transfer money across borders. Following steps explain a complete procedure for sending money from India to overseas locations via remittance.
Understanding Remittance from India
Remittance refers to sending money from one country to another, either for personal purposes (like family support or education) or for business-related payments. In India, international money transfers are governed by the Liberalised Remittance Scheme (LRS), which allows Indian residents to remit up to USD 250,000 per financial year for permissible purposes, including education, travel, medical treatment, gifts, and investments.
Key Methods to Transfer Money from India to Abroad
1. Bank Wire Transfer (SWIFT)
One of the most secure and popular methods, wire transfers through banks allow you to send money directly from your Indian bank account to a foreign bank account.
Process:
- Visit your bank branch or log in to your bank’s online banking platform.
- Provide details such as recipient’s name, bank name, account number, SWIFT code, and purpose of remittance.
- Complete the necessary forms (A2 form) for international remittance under LRS.
- The bank will process the transfer, and the recipient will receive funds in 1-5 business days.
Advantages:
- Highly secure.
- Suitable for large amounts.
Disadvantages:
- Higher fees compared to other methods.
- Exchange rates might not be the most competitive.
2. Online Forex and Remittance Platforms
Several RBI-authorised platforms like Wise, BookMyForex, Instarem, and Remitout provide online remittance services directly from India. These platforms often offer better exchange rates and lower fees than banks.
Process:
- Create an account and complete KYC verification.
- Enter recipient details, purpose of transfer, and amount.
- Fund the transfer through net banking or UPI.
- The platform converts and transfers funds to the recipient’s account.
Advantages:
- Competitive exchange rates.
- Convenient online process.
- Lower fees compared to banks.
Disadvantages:
- May have transfer limits lower than banks.
3. Money Transfer Agents (Western Union, MoneyGram)
Companies like Western Union and MoneyGram allow remittances from India to many countries.
Process:
- Visit an authorised agent location.
- Submit KYC documents and recipient details.
- Pay the transfer amount plus fees.
- The recipient can collect cash or receive funds in their account.
Advantages:
- Suitable for smaller amounts.
- Fast transfers.
Disadvantages:
- Higher fees for cash pickup services.
- Not ideal for large remittances.
4. Foreign Exchange Brokers
For individuals or businesses sending large sums (like property investments or business purchases), specialised foreign exchange brokers can offer personalised services, better rates, and expert advice.
Advantages:
- Competitive rates for high-value transactions.
- Personal service and expert guidance.
Disadvantages:
- Usually for higher-value transfers.
- Not suitable for small, personal transactions.
Documents Required for Outward Remittance
Regardless of the method you choose, you will typically need:
- PAN Card
- Aadhaar or Passport (for KYC)
- Bank account details
- Recipient details (name, bank account, SWIFT code)
- Purpose declaration (A2 form in case of banks)
For educational payments, you may also need:
- Admission letter.
- Invoice from the university.
Points to Consider
- Exchange Rates & Fees: Compare rates across banks and platforms to get the best deal. Even a slight difference can impact the final amount received.
- Transaction Time: Transfers via banks and forex platforms usually take 1-5 days, while money transfer agents can process cash pickups almost instantly.
- Permissible Limits: Under LRS, the cap is USD 250,000 per year. Ensure your purpose aligns with RBI’s guidelines.
Conclusion
Transferring money from India to abroad has become faster and more accessible, thanks to advancements in technology and increasing competition among banks and fintech platforms. Whether you choose a traditional bank wire transfer, an online forex platform, or a money transfer agent, the key lies in selecting the method that best suits your needs based on the amount, destination, and urgency. Always review exchange rates, fees, processing times, and RBI regulations before initiating a transfer to ensure a smooth and compliant transaction.
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