All You Need to Know: Online Money Transfers From India to Any Country
With the world becoming more connected, it has become increasingly common for people to choose to live and work overseas. Transferring money within the country is invariably different from money transfers made to a different country. In India, money can be transferred within the country through methods like IMPS, NEFT, UPI, and RTGS. With UPI and IMPS, you would come across a transaction cap depending on your bank. When it comes to international money transfer from India, there are certain aspects you will have to remember. In this article, we will dive deep into every aspect of money transfer from India.
The Process of Money Transfers
For international money transfer from India, outward remittances are carried out. A remittance essentially refers to the transfer of funds to or from overseas to a person or entity within or outside India for a relevant purpose as prescribed by the RBI. Remittances also include several payments like hotel bills,education expenses abroad and travel related bills. As of RBI in FY20, Indians utilised funds under LRS to the tune of over USD 18 billion, the highest since the inception of LRS in 2004. Moreover, the digital remittance market in India has been growing incessantly with a Compound annual growth rate (CAGR) of 18.2%. With more and more people moving abroad, it has become common to transfer money from India to other countries.
Usually, remittances are made via online modes of payment or through a money transfer agent or service providers of a bank. These methods come with a certain fee such as a transaction fee that is charged by the facilitator along with applicable taxes. This fee varies between banks and service providers. Moreover, by using remittances, you can send money from India to any country within a few minutes.
International Money Transfer Laws
With plenty of money flowing out of the country, the Reserve Bank of India introduced the Liberalized Remittance Scheme (LRS). This scheme regulates the process of how resident Indians can transfer money to other countries. The LRS regulates the maximum amount of money that one can send across the nation’s borders, including the purpose of the transfer. Initially, the transfer limit that was set by the RBI was $25,000 per financial year. In 2015-2016, since the inception of LRS, the RBI has increased the limit of outward remittance to $250,000 per financial year for an Indian resident and $1,000,000 per financial year for an NRI. Here is a list of permissible purposes under which resident individuals can remit funds overseas under LRS.
Paying education fees in another country
Helping family members who live abroad
Gifts and donations
Costs of tourism and travel
Medical treatment abroad
International business trip
Moreover, you will not be allowed to transfer money abroad if your money is accumulated from dividends of certain businesses, lottery, gambling, or interest payments from an NRI bank account.
How To Transfer Money From India To Other Countries
There are plenty of options available for international money transfer from India. You can go ahead with an outward remittance through either an online mode or an offline mode. Meanwhile, it is important for you to choose a reputed service provider who uses an established system so that you can be assured of a safe transfer.
This can help you ensure a smooth money transfer process. In addition, when it comes to transferring money to another country, not all of the available online methods would fit due to the guideline set by the RBI.
While picking a bank or service provider, make sure that you also verify the speed of disbursement. If you send money through wire transfer or NEFT, it would typically take between 24 hours and 96 hours for the transaction to be completed. With the offline process, it would take longer. For both online and offline modes, the transactions are processed within 1 working day provided that all the required documents are provided and the verification process is successful. The fund will typically get credited to the beneficiary’s account within 1 or 2 working days after the verification process.
Benefits of Transferring With ICICI Bank’s Money2World
By transferring money with ICICI Bank’s Money2World, you can experience many benefits. Here is a list of benefits that you can expect by using the services offered by ICICI for outward remittance.
Simpler and faster remittances
Available in 21 currencies
Competitive exchange rates
Easy tracking of transactions online
One-time registration of beneficiary
24*7 availability for remittance requests including holidays and weekends
Available to non-ICICI bank account holders
Partnered with Flywire for faster transfers
By using the Money2World option with ICICI, you can transfer money abroad in a hassle-free manner. Moreover, you can also get 24*7 assistance to have a seamless journey throughout your transfer.
1. What is an outward remittance?
Outward remittance refers to transferring money from India to other countries.
2. Are there charges associated with an international money transfer from India?
Yes. Different banks and financial institutions have different charges for an international money transfer from India. It is best to check the charges before going ahead with your transfer.
3. What is the maximum amount of money I can transfer?
According to the guidelines established by the RBI, you can transfer a maximum of $250,000 per year.
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