Before availing of overseas money transfers, knowing the rules will facilitate a coherent flow of the process. While most of the reputed money exchanges in Mumbai make the process seem easy, it helps on the part of the customer to know the rules. Since money remittance from India needs the reason of the transaction to be stated, some portions of the rules that apply to the different reasons vary slightly. Knowing the requirements in advance brings seamlessness to the activity.

The Common Rules:

The process of remittance is broadly the same for all the reasons allowed by the Government of India. Some of the common rules that apply are:

• All Indian residents are eligible to avail of money remittance services to send money overseas.

• The basic documents that are required to send money abroad are a PAN card, application for retail outward remittance and A2 cum Declaration form.

The Reserve Bank of India allows banks and Full-Fledged Money Changers in India to operate in accordance with the Liberalized Remittance Scheme (LRS). According to this scheme, any resident who wants to send money abroad from India is given a limit of 250,000 US Dollars per financial year.

Rules For Overseas Money Transfer As Education Fees:

All the common rules apply here. In case the fees exceed the stipulated limit of 250,000 US Dollars set by the Liberalized Remittance Scheme, the official documents of the institution depicting the fee structure for the academic session are required to be submitted for further approval.

Rules For Overseas Money Transfer As Emigration:

The limit of 250,000 US Dollars can be increased in the case of emigration if and only if the country of emigration has such a requirement. This is to be supported by the official proof of estimate issued by the emigration country. If the remitter and the beneficiary are the same person, then additional documents are required. A self-declaration, declaring the residential status along with a copy of emigration stamps on their passport, is required.

Additional rules to note for emigration are:

• Remittance cannot be done for the purpose of earning points or credits for immigration.

• Money sent overseas through remittance can only be used for incidental purposes. Capital account transactions are strictly prohibited.

Rules For Overseas Money Transfer As Medical Expenses:

With all the common rules remaining the same, the issue that arises with medical expenses is that they have a risk of exceeding the limit of 250,000 US Dollars set by the Liberalized Remittance Scheme. In such cases, an estimate of the total cost of the treatment is to be provided from the health institution abroad. Estimates of the treatment may also be obtained from Indian doctors or hospitals for the same.

Rules For Overseas Money Transfer For Maintenance Of Relatives Abroad:

Apart from the common rules, only those relations classed as “close relatives” by the Liberalized Remittance Scheme are permitted to avail overseas money transfers for the maintenance of their relatives. “Close relatives” include the following relations:

• Members of a Hindu Undivided Family

• Husband and wife

• One is related to the other as follows:

  • Father (including step-father)

  • Mother (including step-mother)

  • Son (including step-son)

  • Daughter-in-law

  • Daughter

  • Son-in-law

  • Brother (including step-brother)

  • Sister (including step-sister)

Rules For Overseas Money Transfer For Foreign Travel:

Sending money overseas to people who are travelling abroad are bound to the same common rules. The Reserve Bank of India does make a distinction between private visits and business visits. Visits concerned with conferences, seminars, professional training, excursion, and internships are classified as business trips. Money remittance to Nepal and Bhutan is not permitted.

Rules For Overseas Money Transfer As Gift:

In order to send money overseas to a family member as a gift, the remitter needs to submit bank statements and tax assessment orders. The gifts should also be addressed to a person, not to a corporation or the remitter themselves.

Conclusion:

These are some of the most common reasons why people need to send money overseas. The rules followed by the best money exchanges in Mumbai are in accordance with the Liberalized Remittance Scheme, lending customers added peace of mind.