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About This service

An Outward Remittance is a process of transferring money in the form of foreign exchange, by a resident in a particular country, say India, to a beneficiary who is located outside the concerned country (except for Nepal and Bhutan) for any purpose that is approved under the Foreign Exchange Management Act (FEMA) While outward remittance symbolizes sending money from your Indian account to a foreign account, inward remittances mean that foreign currency is remitted to your Indian (INR) account. Activities such as payments made to any person outside India or receipts from them, along with the deals in foreign exchange and foreign security is restricted. It is FEMA that gives the central government the power to impose the restrictions. Without general or specific permission of the MA restricts the transactions involving foreign exchange or foreign security and payments from outside the country to India – the transactions should be made only through an authorised person. Deals in foreign exchange under the current account by an authorised person can be restricted by the Central Government, based on public interest generally Although selling or drawing of foreign exchange is done through an authorized person, the RBI is empowered by this Act to subject the capital account transactions to a number of restrictions. Residents of India will be permitted to carry out transactions in foreign exchange, foreign security or to own or hold immovable property abroad if the currency, security or property was owned or acquired when he/she was living outside India, or when it was inherited by him/her from someone living outside India.

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Includes/exclude

in service

  • Detailed guidance on foreign inwards & outwards remittance
  • Preparation of required documents to be submitted to the RBI/banks while making instructions of payment of imports
  • Preparation of required documents to be submitted to the banks/RBI while receiving money into your indian accounts from a person located outside
  • submission of documents to the custom authorities or any other authorities at the time of import and export, does not included in this plan

Whom

it’s beneficial

  • An importer and exporter
  • A person want to remit money to a bank account located out of India
  • A person wants to receive money in India from a person having bank account located out of India

Process

  • Purchase Plan
  • Provide information, details and documents as needed
  • Get an advice how to framework the transactions with the set of required documents
  • will be at your disposal till the completion of transactions,/li>

Information/Documents

needed

  • The documents needed shall depend on the service at a particular point of time. The same shall be communicated to you by our experts based on your requirements.

Other Information

RBI has laid down various guidelines under Foreign Exchange Management Act:

RBI Guidelines for Payments in case of Export Import Trade
RBI Guidelines for Overseas Education
RBI Guidelines for Medical Treatment Abroad
Remittance By Tour Operators to Overseas
RBI Guidelines for Private Visits
RBI Guidelines for Business Travel
RBI guidelines for fee participation in the global conference and specialized training
RBI Guidelines for Participation in International Events/ Competitions
RBI Guidelines for Disbursement of Crew Wages
Outward remittance for educational tie up arrangements with universities abroad
Outward remittance for employment and processing fees for overseas job application
RBI guidelines towards fees examinations held in India and abroad and additional score sheets for GRE, TOEFL, etc.

The statement issued on 6th April 2018 by Jose J. Kattoor, Chief General Manager at RBI via press release titled “Statement on Developmental and Regulatory Policies”, is “Pursuant to the announcement made in the first bi-monthly Monetary Policy Statement 2018-19 on April 5, 2018, a system for daily reporting of individual transactions under the Liberalized Remittance Scheme (LRS) by Authorized Dealer (AD) banks has been put in place.

This system enables the AD banks to view the remittances already sent by an individual during the financial year, thus improving monitoring and ensuring compliance with the LRS limits.

Since the said reporting system uses the Permanent Account Number (PAN) of the remitter as a Unique Identifier to aggregate the remitter-wise data, it has been decided that furnishing of PAN, which hitherto was not to be insisted upon while putting through permissible current account transactions of up to USD 25,000, shall now be mandatory for making all remittances under LRS.

Further, in the context of remittances allowed under LRS for maintenance of close relatives, it has been decided to align the definition of ‘relative’ with the definition given in Companies Act, 2013 instead of Companies Act, 1956.”

 

What is Liberalised Remittance Scheme (LRS)?

According to the Liberalized Remittance Scheme (LRS) of Reserve Bank of India (RBI), it is mandatory to quote PAN number for remittance transactions from India to Abroad. The LRS scheme is made for the residents of India to ease the process of transferring money abroad. The money is transferred for several reasons such as overseas education, overseas medical treatments, tour cost and immigration, as well as to allow Indian residents to invest in foreign stocks and property. The Scheme was introduced in 2004. Earlier, PAN card was not a primary requirement for remittance transactions up to $25,000.There have been multiple instances of individuals/businesses involving themselves in unethical practices breaching foreign exchange limits specified by RBI.PAN has been mandated to ensure that LRS limits prescribed by RBI have strictly adhered.

The current annual LRS limit for every individual in India is $2, 50,000 per FY.

Banks have been given a strict ultimatum to report all LRS transactions to RBI, irrespective of Amount unlike earlier, and it is expected that there would be regular checks to ensure compliance to LRS rules from the current financial year.

 

 

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