Sending money from India or Outward remittance can be a daunting procedure for common people as well as foreign businesses. There are several schemes and regulations that limit the amount of money that can be remitted for various purposes. The Foreign Exchange Management Act (FEMA) regulates all transactions that involve foreign exchange. Check out the below steps that can be followed by you to sail through outward and inward remittance process.
Contact the right financial institution
Outward remittance in India is usually provided by major banking institutions. For outward remittance service in Chandigarh, it is better to consider any major bank with an international footprint or a financial firm which has been in business for several years. It is recommended not to trust any individual or financial firm which is unreliable.
Select the mode of Transfer
You have the option to send the money by 2 modes:
- Foreign Currency Demand Draft (FCDD): This draft is denominated in foreign currency and should be drawn in favor of beneficiary or recipient.
- Wire Transfer: Also referred as SWIFT, is a secure and standardized system by which banks can correspond to each other. Though its charges are higher it is better than FCCD as the transfer can be made within 24 hours.
Process of Remittance
You need to fill remittance request form mentioning purpose behind sending money abroad. If the amount is large then the source of money also has to be indicated. Apart from this form A2 has to be filled along with a certificated from a CA (chartered accountant). RBI has placed an annual cap of $200,000 per person.
RBI does not allow remittances for gambling, margin trading and lotteries. You can check the norms of FEMA if the remittance is allowed. You must also be wary of the regulations of the country to which you are sending your money to. Also, check the amount that you can transfer per transaction and total transactions permitted in a year.
If you are collecting your money in cash do not forget to carry a photo ID such as Passport, Voters ID etc. Apart from bank channels and wires foreign currency cheques can also be issued which can be encashed in any branch in India. Online money transfer is one of the most widely used modes of money transfer these days.
Keeping the above given points in mind can help you have a hassle-free outward and inward remittance. Apart from these if the money is sent for investment purposes these must be in line with the GOI norms for NRI investments. Moreover, if the payment is not received by a receiver within 45 days of money transfer, the money is refunded to sender after administrative cost deduction.