Many Indians are migrating to the USA for doing higher studies or for acquiring a certain profession. The United States of America (USA) is another country that lures many for no lesser reason. The USA houses some of the largest bunch of international students in the world. Indian students mainly want to study in the US due to the high quality of education, unique curriculum, abundant opportunities, and multicultural environment.
Many hive-off to the USA, creating a necessity for financial needs which makes you support your friends, family, and relatives in these countries. One should have the basic knowledge about currency rates, methods, and allowed purposes of international money transfers while doing overseas remittances to these countries.
What are methods for Outward Remittance from India to the USA?
The most commonly used methods of International Money Transfers are SWIFT and FCDD remittances:
SWIFT
The most commonly used method of wire transfer is through SWIFT or widely known as Society for Worldwide Interbank Financial Telecommunication network. The SWIFT network is a messaging protocol. This system is used to send data from one bank to another. Indian Banks and RBI approved Authorized Dealers like Unimoni Financial Services Ltd has arrangements with major banks across the globe to receive SWIFT messages which ensures safe and secure outward remittance from India.
FCDD
FCDD or Foreign Currency Demand Draft is the draft that has foreign currency with the desirable amount that needs to be remitted. These demand drafts are a safe option to make international money transfer safer and faster as it is made ‘favoring’ the beneficiary. DDs can be reissued if lost or stolen.
Documents Required for a Transfer Money From India to the USA Include the Following:
- The sender’s government-issued photo ID (passport, voter’s ID, or Aadhar card)
- A copy of the sender’s PAN card
- A2 Form cum declaration filled out and signed by the sender
- Proof of purpose (University letter/Prospectus-in case of education remittance) detailing the amount to be transferred as well as account information (for tuition fee payments only)
- A copy of the beneficiary’s passport (for maintenance of close relative & gift remittance only)
Main Purposes of Transfer Money From India to the USA:
Travel to the United States of America on a private purpose
RBI enables any resident Indian to remit up to US$ 2,50,000 in a financial year from authorized dealers or fully-fledged money changers for private travel to the US. This limit applies regardless of the number of trips to the United States within a fiscal year, as long as the resident Indian’s total forex limit is less than US$ 2,50,000. A maximum of 3,000 USD (or equivalent) in cash (currency) can be brought overseas every trip. The balance can be carried on a forex card or traveler’s cheques.
All tour-related expenses, including the cost of rail/road/water transportation outside India and abroad hotel/lodging charges, must be included under the LRS limit in the case of planned excursions to the United States. The tour operator might receive this money from the resident traveler in Indian rupees or US dollars.
Studying at a university in the United States
RBI allows remittances up to US$ 2,50,000 to study in the United States. Amounts over the limit may be released if formal evidence of need is provided, such as an estimate from a university abroad.
The Scheme can be used for outward remittance in the form of a DD, either in the name of the resident individual or in the name of the beneficiary with whom they intend to conduct permissible transactions during a private visit to the US, against self-declaration in the format prescribed by the remitter. Individuals can open, maintain, and retain foreign currency accounts with a bank in the United States to make remittances under the Scheme without the Reserve Bank’s prior approval. All transactions linked with or originating from remittances eligible under this Scheme may be processed through foreign currency accounts.
Medical care in the United States
A person travelling to the United States for medical treatment is permitted (foreign exchange) for remittance up to USD 2,50,000 each fiscal year without a hospital/estimate. Doctor’s Authorized Dealers may distribute foreign exchange above the above limit with general authorization based on a doctor’s assessment in India or a hospital/estimate doctor in the United States.
An Authorized Dealer may issue foreign exchange to a person who has become ill after travelling to the United States (without first obtaining Reserve Bank of India authorization) for medical treatment outside India.
In addition to the preceding, a person may be reimbursed up to USD 250,000 per fiscal year for accompanying a patient abroad for medical treatment or examination.
Employment in the United States
An Authorized Dealer in India can remit up to USD 2,50,000 each fiscal year to someone moving to the United States for work.
Moving to the United States of America
Up to USD 250,000 in foreign exchange can be routed through AD Category I banks and AD Category II money changers by someone intending to relocate to the United States of America. Remittances outside the US over this amount may be permitted solely for incidental expenses in the United States. This system cannot be utilized to obtain points or credits to become eligible for immigration by investing in government bonds, land, commercial enterprises, or other offshore investments.
Keeping in touch with close family who are still in the United States
A resident Indian can transmit money to the US for the maintenance of close relations [‘relative’ as defined in Section 2(77) of the Companies Act, 2013] abroad up to USD 2,50,000 per Financial Year (April – March).
Remitting a gift or donating to the United States of America.
In a Financial Year, any resident individual may send up to USD 2,50,000 as a gift to a person living in the United States or as a donation to a US-based organization.
On the other hand, gift remittances can only be sent to residents of India, non-resident Indians, or Indian citizens living abroad (OCI).
It is impossible to provide a foreigner’s presence under this plan.
Key Points to Be Aware of Transfer Money From India to the USA:
- Exchange Rates: Take note of the exchange rates while opting for the services. Foreign exchange rates are always fluctuating hence it is often advisable to check the rate especially in case of higher amounts.
- Service Provider: Choose the most secured and trusted service providers for international money transfers.
- Transaction Charges: It is often advisable to rely on authorized service providers who provide standard transfer fees.
- Money Transfer Limits: One can send up to USD 2,50,000 under Liberalised Remittance Scheme (LRS).
- Time for Overseas Transfer: SWIFT Transfer can take up to 48 working hours for the funds to be credited to the beneficiary account in the USA. Occasionally, the transaction is accomplished much before the time limit, which is usually within 24 hours of doing the transaction.
Authenticated services providers often follow accurate norms and guidelines as prescribed by the regulators which are often devised with goodwill for customers. Hence such authorized dealers or service providers are trustworthy and safe to send money from India to USA. Unimoni Financial Services Ltd is one of the top service providers in Sending Money Abroad from India with a wide network of branches and rich Industry experiences.
Unimoni allows you to send money swiftly from India to the United States.
It is now quite simple to transfer money from India to the USA. An international money transfer order may appear complicated, but it’s quite simple if done correctly. There’s a common misunderstanding among many individuals about which is the better option:
Are you going to make a money transfer online or at a branch of your bank? Unimoni has revolutionized all of this by revolutionizing how money is sent internationally. To send money from India to the United States, go to our website and fill out the form; our Forex professionals will contact you and walk you through the process.
Unimoni should be your first port of call if you need to send money to the United States. Unimoni offers the most competitive currency exchange rates. Unimoni also ensures that the transactions are processed as quickly as feasible. The entire transfer process takes only 12 to 48 business hours. At Unimoni, we believe in complete transparency at all times, so you only pay for what you see on the screen. Unimoni also has a tool that allows you to lock in US Dollar rates during periods of volatility. We’ve developed an online remittance process that eliminates the need for you to visit the bank. From the comfort of your own home, you can send up to US 2,5,0000 internationally.
