RBI Guidelines for International Money Transfer

An outward remittance is a transfer of money in foreign exchange by a resident in India to a beneficiary outside the country, for a purpose permitted under the Foreign Exchange Management Act (FEMA). Nepal and Bhutan sit outside this route. The transfer itself is made either as a wire transfer or as a demand draft.

What you can send, and what you have to prove, depends on two things: your residential status and the purpose of the remittance. Almost every question about documents traces back to the purpose you have declared.

Source: Reserve Bank of India, Master Directions on the Liberalised Remittance Scheme and Other Remittance Facilities.

The Liberalised Remittance Scheme was introduced on 4 February 2004 to let resident individuals transfer money abroad for permitted current and capital account transactions. Under it, a resident individual may remit up to USD 250,000, or its equivalent, during a financial year.

The figure is an annual, combined one. Money sent towards a university fee, foreign currency bought for a holiday and anything else drawn under LRS all count against the same USD 250,000 for that financial year.

Source: Reserve Bank of India, Master Direction on the Liberalised Remittance Scheme.

Outward remittances are processed through dealers authorised by the Reserve Bank of India, and the authorisation is tiered. Business transactions relating to the import and export of goods and services are restricted to authorised banks. Authorised dealers of the money-changer category are permitted to facilitate outward remittances for a defined list of purposes, set out in the next section, all of which sit within the overall LRS limit.

Because the list is defined by licence category rather than by preference, the practical question for any transfer is whether your purpose appears on it and whether you hold the documents that purpose requires. Confirm both with our branch team before you commit to a payment deadline.

Source: Reserve Bank of India, Master Direction on Money Changing Activities and related FEMA provisions.

RBI permits outward remittance through this route for the following purposes, each within the overall LRS limit.

• Private visits
• Remittance by tour operators and travel agents to overseas agents, principals and hotels
• Business travel
• Fees for participation in global conferences and specialised training
• Remittance for participation in international events and competitions, towards training, sponsorship and prize money
• Film shooting
• Medical treatment abroad
• Disbursement of crew wages
• Overseas education
• Remittance under educational tie-up arrangements with universities abroad
• Fees for examinations held in India and abroad, and additional score sheets for GRE, TOEFL and similar tests
• Employment, processing and assessment fees for overseas job applications
• Emigration and emigration consultancy fees
• Skills and credential assessment fees for intending migrants
• Visa fees
• Processing fees for registration of documents as required by the Portuguese and other governments
• Registration, subscription and membership fees to international organisations

Source: Reserve Bank of India, purposes permitted for authorised dealers under FEMA.

Whatever the purpose, a common core of paperwork applies. A transaction is processed only once the remitter's KYC has been verified in person at the branch against the original documents.

• Form A2
• Application cum declaration under the Liberalised Remittance Scheme
• FEMA declaration
• PAN card, mandatory for every outward remittance
• KYC and identity documents of the remitter, produced in original for verification

Source: Reserve Bank of India, Master Direction on the Liberalised Remittance Scheme.

For a remittance made by an individual towards a private visit, the travel documents themselves carry the proof of purpose.

• Private visits: valid passport, ticket and visa, plus an invoice from the overseas hotel or travel agent confirming the amount to be remitted
• Remittance by a tour operator or travel agent to an overseas agent, principal or hotel: a letter on the tour operator's letterhead listing the passengers with their passport details, duly attested
• An invoice from the overseas agent or hotel confirming the amount, carrying the seal and signature of the overseas agent
• An undertaking from the tour operator that the remittance is being made on the travellers' behalf
• Copies of the travellers' passports, retained at the branch
• Form 15CA and 15CB, where the remittance is made by a tour operator that is not an individual

Source: Reserve Bank of India, purpose-wise documentation for outward remittances.

• Business travel: valid passport, ticket and visa
• Global conferences and specialised training: the conference invitation, showing the participation fee and the remittance details, with photocopies of the passport, ticket and visa
• International events and competitions: KYC and a passport copy of the remitter, plus a letter or prospectus from the event organiser stating the amount to be remitted
• Film shooting: a request letter giving the purpose of travel, the people travelling with their designations and passport numbers, the dates and venue, and a breakup of the cost involved
• Film shooting: an invoice from the overseas agent organising or facilitating the shoot, a permission letter from the Ministry of Information and Broadcasting, and an undertaking that no foreign exchange has been drawn from another authorised dealer for the same trip
• Form 15CA and 15CB, where the remittance is made by a film shooting company rather than an individual

Source: Reserve Bank of India, purpose-wise documentation for outward remittances.

The patient and an accompanying person are documented separately.

• For the patient: passport, ticket and visa, a prescription and recommendation from the local doctor or hospital, and an estimate from the overseas hospital or doctor
• For an accompanying person: passport, ticket and visa, copies of which are retained at the branch
• PAN card is mandatory in both cases, alongside Form A2 and the LRS and FEMA declarations

Source: Reserve Bank of India, purpose-wise documentation for outward remittances.

Education is the purpose our branches handle most, and the document that matters changes between a student's first remittance and the ones that follow it.

• Overseas education: passport, ticket and visa, copies of which are retained at the branch
• First remittance: proof of admission to the college or university abroad, such as the offer letter or the I-20
• Subsequent remittances: proof that the course is continuing
• Above USD 250,000, which falls outside LRS: an admission or demand letter from the college or university specifying the amount to be remitted
• Educational tie-up arrangements with a university abroad: a copy of the arrangement, the invoice, a PAN card copy of the remitting institute, and an authorisation letter naming the signatory for Form A2 and the declaration
• Examination fees held in India or abroad, and additional score sheets for GRE, TOEFL and similar tests: the examination guidelines specifying the fee
• PAN card is mandatory throughout

Source: Reserve Bank of India, purpose-wise documentation for outward remittances.

• Employment, processing and assessment fees for overseas job applications: passport, ticket, visa and the offer letter, with copies retained, plus a self-declaration
• Emigration and emigration consultancy fees: passport, ticket and visa with copies retained, plus a self-declaration. This is remitted once, at the time of emigration
• Skills and credential assessment fees for intending migrants: a certified copy of the invoice or debit note, and a certified copy of the agreement or contract
• Visa fees: KYC of the remitter, and a letter or prospectus from the embassy authorising the amount to be collected and naming the agency authorised to collect it
• Processing fees for registration of documents required by the Portuguese or other governments: the letter issued by the consulate, along with any identity and address proof
• Registration, subscription and membership fees to international organisations: an invoice or letter stating the amount to be remitted
• PAN card is mandatory for each of the above

Source: Reserve Bank of India, purpose-wise documentation for outward remittances.

• Application cum declaration under LRS and the FEMA declaration
• The captain's passport
• Inward SWIFT message carrying the captain's name and passport number, or the ship name and port name for the foreign exchange delivery
• Instruction mail from the shipping agent
• Crew list
• PAN card

Source: Reserve Bank of India, purpose-wise documentation for outward remittances.

Every remittance is arranged in person at one of our three Hyderabad branches. There is no online booking platform; you bring the documents, our team verifies your KYC against the originals, confirms the applicable exchange rate and charges with you, and the transfer is initiated once the INR funds and the paperwork are both complete.

Because the document set is driven by the purpose you declare, the fastest way to avoid a second trip is to tell us the purpose when you first call. We will tell you exactly which of the lists above applies to you before you travel to the branch.