9 must-know outward remittance guidelines for you!

outward remittance
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Indian students generally prefer to get graduated in some professional courses from the renowned universities outside India. Indian parents as well as the students have often been witnessed to believe that studying abroad can help them to frame a platform for building an improved career in future. As a new drift has generated in the arena of providing better quality education, it is measured much creditable than investing in anything else. This marks a hype in the number of students from India migrating for getting graduated from top universities. This leads to a demand for money transfer for meeting all the related expenses. Now it has been made all the more easier than before.

What is the amount that can be sent through outward remittance?

  1. The total remittance amount under LRS is $250,000. Though in case of additional financial requirements for the purposes of:
  • Studies Abroad
  • Medical Expenses Abroad
  • Maintenance of a Close Relative Abroad

What is conditions for outward remittance for more funds?

The LRS limit can be surpassed with the approval of RBI on submission of official papers proving the need for extra monetary requirements.

  1. All outward remittances made as gifts or donations are included in purvey of LRS and cannot be accounted for as a single remittance.
  2. For expenditures related to education (studies abroad), a person may be allowed to avail further than their limit of $250,000 under LRS if it is so essential by the university or institute providing the course.
  3. Indian pupils as NRIs availing a loan abroad, can return the same upon coming back to India under LRS.
  4. If a person sends an amount under LRS in a fiscal year, then the updated limit for that individual would be lowered from $250,000 by the sent amount.
  5. For the purpose of travel, a student may be permitted to buy and carry foreign currency notes/coins only up to $3000, and balance in Forex travel card up to $7,000.
  6. In case of the remitter being a minor, the minor’s natural custodian must sign the LRS declaration form.
  7. In case of obtaining a loan from an official dealer in India, a resident close kin of the non-resident Indian is eligible to pay back the loan.
  8. A resident in India can contain non-resident close relatives as a joint holders in their resident bank accounts as ‘former or survivor’. Yet, the non-resident Indian close relatives are not permitted to manage the account within the period of the resident account holder’s lifespan.

What are the requisites for remitting money under LRS?

  • Submission of a self-declaration form showing the intention of your remittance.
  • It is mandatory to provide PAN card to make remittances under the scheme.
  • A bank/AD2 Category Foreign Exchange trader must be chosen for remittances.

So now, stop worrying about the new changes and send money abroad without any confusions….