Are you looking for the rules for overseas money transfers from India? The Reserve Bank of India is India’s financial regulatory authority. They monitor foreign exchange transactions of all licensed entities. Always send money overseas from an authorized Remitx money exchanger because they are aware of all rules and regulations laid down by the RBI.
In this blog, we are going to tell you about foreign exchange rules and how to obtain Forex services legally in India.
6 Important Rules you need to know to Send Money Abroad
1. The Reserve Bank of India has set Rules regarding Foreign Exchange Transactions
The Reserve Bank of India’s primary responsibility is to keep track of legitimate foreign exchange transactions. They issue guidelines for the Indian foreign exchange companies. Foreign exchange regulations are drafted under FEMA and listed under the “Liberalized Remittance Scheme”
2. Currency Exchange Regulations of the Reserve Bank of India
forex cardsal can purchase the foreign currency up to their entire annual LRS limit or a part amount for a single trip. You can draw the LRS limit in cash, prepaid forex cards, or a combination of both as per the RBI.
Please note, there is no separate LRS for money transfer from India to abroad. It is covered under the same LRS limit.
3. It is important to Know Your Customer (KYC) documents are required when purchasing foreign currency.
• Indian passport
• PAN Card
• Valid Visa (Some countries require it)
- Valid Ticket
• Aadhar Card (If required)
4. We can buy foreign exchange or send money abroad within 60 days of the travel date (date of travel in flight ticket)
5. Purchase of Foreign Currency is Restricted to the available LRS quota
If you plan to travel as a family or group, you need money in cash for your joint expenses. In addition to this, you need to obtain the additional currency by presenting the KYC documents. By doing this you will get more cash limit to send money overseas. Furthermore, foreign cash can only be purchased in India by Indian citizens. Foreigners and NRIs are not permitted to purchase currency in India.
6. The Method of Payment must be used while Purchasing Currency in India
• Cash: A resident of India can buy currency by paying INR cash up to ₹50,000/- at a bank or a money exchanger. You need to go to a trusted money exchanger to send money abroad.
• Card: A resident of India can buy currency prepaid cards by paying INR cash up to ₹50,000/- to a money exchanger, all banks do not sell prepaid foreign currency cards. You need to go to a trusted money exchanger to buy prepaid forex cards. ₹50,000/- you need to make online bank transfer or Pay by cheque.
Summing-Up Words
You just need to follow the above mentioned guidelines for money transfer from India to abroad. After reading this article you will get to know RBI laws and guidelines. Remitx offers valuable services to send money abroad as they are aware and follow rules and guidelines issued by RBI.
Thanks for reading!
Forward this article to your family members who want to know the rules for overseas money transfer abroad.