Our financial obligations require us to make transfers regularly. Sometimes, these responsibilities extend beyond India. When this happens, you make International Money Transfer. The reasons may include paying for education, funding a business venture, sending money to family, or repatriating funds as a Non-Resident Indian. No matter the purpose, you need a seamless channel.
Banks offer this as Outward Remittance. It takes place through a secured network and lets you send money from India to a foreign country. The laws governing such transfers fall under the jurisdiction of the Reserve Bank of India or RBI and the Foreign Exchange Management Act or FEMA. Hence, these entities lay down guidelines for making transfers outside the country. According to this, you should focus on these aspects:
Purpose
You need not secure special permission to send money overseas. The Liberalised Remittance Scheme under FEMA allows this flexibility. But you need to transfer under the eligible purposes. They include employment, education, medical emergency, property purchase, business travel, etc. Therefore, pay attention to this aspect while stating the reason in the International Money Transfer app.
KYC requirements
You should submit certain documents to the bank to progress the money transfer process. This depends on the purpose and nature of the transfer. For instance, you must furnish the university letter if transferring funds for your child’s education. Additionally, your details and bank information is required. It is best to check its details in the Bank Remittance section.
Foreign transfer limit
There is no upper limit on the number of transactions. However, try sticking to the transaction limit in a financial year. This amounts to USD 2.5 lakh. Spread your transfers throughout the year with this limit as the bar. It is the best way to manage large and small anticipated transfers. Besides, you can surpass the limit of Foreign Remittance in exceptional cases. Some examples include supporting studies abroad or settling medical expenses,
Methods
There are several means to send money abroad. You should choose based on your convenience, estimated transfer time, cost, etc. Wire Transfer is the most common transfer method. It uses the Society of Worldwide Interbank Financial Telecommunications or SWIFT code to transfer quickly. Other Outward Remittance methods include Money Orders, Bank Drafts, Online Transfers, etc.
Beneficiary details
Besides stating the purpose, currency, and amount, also submit the information about the recipient. The details include name, contact number, account number, address, etc. Ensure to cross-check this with the beneficiary. Submitting incorrect or incomplete information leads to cancellation or wrong delivery. In such cases, getting a refund becomes an issue as funds travel across multiple intermediaries.
For more related Articles visit: https://www.nativesdaily.com/
