Methods To Transfer Money Overseas From India

Money transfer or sending money from India to any other country is also called outward remittance which involves government restrictions as well as control of foreign exchange. As per the existing norms, all outward remittances have to be declared and approved under the stipulations of the Foreign Exchange Management Act. (FEMA), which regulates transactions that involve foreign exchange. FEMA was enacted in 1999 and became effective from June 1, 2000.

Earlier to this, the statutory power for exchange control was provided by the Foreign Exchange Regulation Act (FERA) of 1947, which was later on replaced by a more comprehensive Foreign Exchange Regulation Act, 1973. Extensive relaxations in the rules governing foreign exchange were initiated, prompted by the liberalization measures introduced since 1991 and the Act was amended as a new Foreign Exchange Regulation (Amendment) Act 1993. After the liberalization of Indian investments abroad, the Foreign Exchange Management Act (FEMA) was enacted and became effective.

Methods to transfer money overseas from India

There are various Methods To Transfer Money Overseas From India. Some of them are as follows-

1. 1. By visiting the bank branches, filling the required forms to remit money abroad also called wire transfer or Foreign Currency Demand Draft (FCDD). In this method, you may be required to be an account holder at the particular bank. If you are not an account holder in the bank then you need to show some identification such as passport etc. You will also need to furnish information such as recipient of your fund, recipient account number, purpose of remittance such invoice, bill or debit note etc. This is one of the easiest methods to transfer money overseas from India if you do not know the technical online processes and here you can find out some helping hands also to get your work done.
   2. On the other way, you can use online banking services equipped with modern technology to send money abroad safely in a matter of minutes. You can use the services of reputed banks and global money transfer companies. For this, log in to your bank’s online service, go to “transfer” or “remittance” service. Give information on the recipient of your funds (including an account number to transfer the money to), and you may need to show prof of the purpose of your remittance, such as an invoice etc. This is one of the most convenient methods to transfer money overseas from India if you use money transfer mechanisms online.
   3. You can also use a third-party transfer service which includes Money2World, PayPal, or Book My Forex, and services offered by some banks to non-account holders. These are subject to a limit of $25,000 USD per month per transaction. In this case, for the outward remittance, you need to provide ID and Residence proofs such as passport etc. You need to furnish one-time registration process including account number and other personal information. You may also be required to register and verify the recipient of your remittance. Once all this done then you need to wait for some time such as 24 hours to initiate outward remittance.
   4. You can also do outward remittance in an International currency such as US dollars (USD) or Euro, Outward remittances sent in rupees are subject to more restrictions than those sent in foreign currencies. These foreign funds can then be sent in a variety of ways, including wire transfers and checks. In this case also you need to provide proof of the purpose of your remittance, such as an invoice. After purchasing foreign currency from many banks as well as private currency exchanges, you can remit money in a foreign currency using an FCDD (available through many banks and financial institutions). Although this will be converted from rupees, and therefore subject to the restrictions imposed by the Indian government.

Purpose of outward remittance should be clearly mentioned in the invoice, bill or debit note and should carry the same name as the account requesting the remittance. The purpose could be education expenses, emigration fees, employment, care for a close relative, medical treatments, visa fees, police verification or visits abroad for private purposes.

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