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The below content is purely for informational purposes and is not intended to constitute advisory of any kind. Please note, these are in-depth articles which are best viewed on large screen devices like laptops, desktops and tablets. The position reflected in this article has been updated as of January 15, 2024.

Every year, a considerable number of Indian students go abroad to study. Sending money abroad to your child can be a great way to support them financially and help them cover their accommodation costs, day-to-day living expenses, and other costs. This article will explore the different ways to send money abroad to your child, so that you can choose the best option basis your requirement.


Transfer money abroad: Know the options

Ananya, a 22-year-old student from India, has recently moved to Singapore to pursue a post-graduate degree. Her parents, Ved and Meera, want to send her money regularly to support her financially.

It is important to note that any overseas money transfer falls under the purview of the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS), applicable for resident Indians. To comply with RBI regulations, parents must ensure that the total amount they send overseas, including the funds they send to their children studying abroad should not exceed USD 250,000 per Financial Year per individual. To understand the permissible purposes for which you can send money abroad under the LRS scheme, click here.

When making an overseas money transfer from India, it is important to consider the cost, speed, and security of the transfer. The cost of the transfer will include transfer fees, currency conversion charges and applicable service tax. It is important to carefully estimate the total cost before initiating the transfer. These fees fall within the specified limit of USD 250,000 set under LRS. The speed of the transfer will vary depending on the method you choose.

Ved and Meera have multiple options to send money abroad to Ananya, namely:


1. Online money transfer

Various banks and fintech players provide digital platforms that allow you to send money abroad from India. ICICI Bank offers Money2World, that facilitates easy and secure money transfers online. It is also available on ‘iMobile Pay’ app, the bank’s mobile banking platform.

Ananya’s parents can make an online money transfer from the comfort of their home, at any time based on their convenience.

Send money through Money2World

2. Forex card

Ved and Meera can purchase a forex card for Ananya in India and load it with money for Ananya to support herself financially abroad. These forex cards operate digitally. Therefore, Ved and Meera can remotely reload money easily and instantly from their bank account in India whenever needed. With a forex card, Ananya can make purchases abroad or withdraw cash in foreign currency from ATMs. Forex cards can help Ananya avoid unfavourable exchange rates and currency conversion fees.  

ICICI Bank’s student forex card is widely accepted worldwide. Parents can reload money instantly at any time using the iMobile Pay app for their child studying abroad.

Apply for Student Forex Card

3. Wire transfers from branch

Banks offer the facility to send money to international banks abroad through wire transfers. Parents can visit their bank’s branch to send money abroad to their child. Wire transfers done through branch often offer a higher transaction limit as compared to online remittance channels. You should contact your bank for more information.

Branch locator


4. Cross border Unified Payments Interface (UPI) payments

The international arm of the National Payments Corporation of India (NPCI), NPCI International Payments Limited (NIPL), has now developed the capability to send money overseas using cross-border UPI. Ved and Meera can explore transferring funds from their Indian bank account to Ananya’s overseas bank account using UPI. This service is currently available in the India-Singapore corridor and is expected to be extended to additional countries.

To know more about outward remittances or transferring money overseas, click here.


5. Foreign currency demand draft (FCDD)

In addition to the above modes, parents can choose to send money to their children studying abroad using FCDD. Ved and Meera can go to any bank’s branch in India and request for an FCDD. FCDD is a physical demand draft which Ananya can present to the bank overseas where she has a bank account.

ICICI Bank offers FCDDs in multiple currencies including USD, GBP, SGD, EURO, CAD and AUD. The charges to issue an FCDD may vary from bank to bank.


Tax implications of sending money abroad from India

Tax collected at source (TCS) is a tax that is collected by the bank or other authorized dealer when a resident Indian remits money under the LRS. The TCS varies depending on the purpose of the remittance and the total amount being transferred. Individuals must comply with these regulations when making outward remittances.

The TCS collected on foreign outward remittance can be claimed as a credit while filing the income tax return in India.

There is no TCS applicable for outward remittances made via any payment modes upto ₹7 lakhs per individual per year for all purposes except overseas tour package.


TCS rates are as tabulated below:

Please note, tables are best viewed on desktops and in landscape mode on mobiles phones.

Purpose Rate of TCS *

Education financed by loan from financial institution

0.5% of the aggregate of the amounts more than ₹7 lakh in a Financial Year

Education not financed by loan

5% of the aggregate of the amounts more than ₹7 lakh in a Financial Year

Medical treatment

5% of the aggregate of the amounts more than ₹7 lakh in a Financial Year

Purchase of overseas tour programme package

In a Financial Year

5% of the aggregate of the amounts till ₹7 lakh and

20% of the aggregate of the amounts in excess of ₹7 lakh

Any other purpose: (other than specified above)

20% of the aggregate of the amounts more than ₹7 lakh in a Financial Year

*TCS rates are applicable effective October 1, 2023 basis the Finance Act, 2023

Please note, TCS is only applicable for residents.


Sending money to your child abroad is an important part of supporting them during their studies. By choosing the right money transfer method and comparing exchange rates and fees, you can find the best way to send money to your child quickly, securely, and affordably. It is also a good idea to consult with a tax professional to understand the tax implications of sending money abroad to your child.

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