Mr Sharma has two of his daughters studying abroad; one in the UK and one in Canada. So every month he needs to send a certain amount to them to suffice for living expenses, conveyance, and allowance. The tuition fees have usually required the start of the term, not as regular as the maintenance, which he sends using online money transfer services.
Mr Wilson, on the other hand, has recently moved to India, being transferred from the UK headquarters, with his family back in London. Like Mr Sharma, he too has to send maintenance money abroad every month for the family, just like the thousands of others who avail themselves of online remittance services regularly to send money to their loved ones.
Outward remittance has found prevalence among a significant percentage of the population with loved ones and acquaintances living abroad.
In March 2020, it was recorded that $344 million was transferred by Indians to relatives staying abroad. The staggering amount has been ascending every fiscal, owing to the increased movement across the borders for personal, professional, business, and medical reasons.
Now, maintenance can be anything, ranging from student fees to family allowance and more, such as:
- Money for real estate; which can be either for buying the property or for maintenance purpose.
- Paying allowance or financial support to the family living abroad;
- Utility or house maintenance, while the residents are living in another country;
- Paying student fees and allowance for living, conveyance, etc.;
- Paying for the medical expenses.
There is a multitude of other reasons why one might need to send money abroad. We will be discussing the relevant details about the process and the avenues to access in this write-up.
Outward Remittances: Understanding Abroad Money Transfer
What is an outward remittance? When a person transfers or sends money from their domestic account to a recipient account based in another country, it is called outward remittance. So every time Mr Sharma and Mr Wilson send money to their loved ones located in the UK and Canada, they might be using online outward money transfer services, but the act of transferring the money is termed as an outward remittance. In India, all foreign transfers and transactions are regulated by the Reserve Bank of India under the FEMA, also known as Foreign Exchange Management Act.
Outward remittance is considered the most convenient way to send money abroad. It is easy and fast for the sender, and the recipient can get access to funds instantly. Since it is done on a secured banking network, there are minimal chances of fraud or financial mishap.
Online remittance might be the most convenient medium to send money abroad, but that is not the only way out there. The other avenues for sending money to another country are:
- Cashiers cheques
- Bank drafts
- International money order
- Online wire transfer
However, owing to so many online remittance providers, and because it takes a lot less time than the other options, people choose it over the others.
Process of Sending Money Abroad
Now that we are past the basics, let’s get to the process that one has to follow to send money abroad.
- The first step is choosing an outward remittance provider like Transcorp, for instance, to transfer maintenance to your loved ones living in a different country.
- The second step is getting the accurate bank details of the recipient, including bank account number, SWIFT code, PAN details, and other relevant bank account details.
- In the final stage, you would contact the remittance provider, furnish all essential details and complete the overseas money transfer from the sender to the recipient’s account.
RBI Guidelines about Outward Remittance
Before initiating abroad money transfer, one needs to know about the RBI guidelines about outward remittances, which are:
- You can transfer up to $250000 in remittances at once or multiple instalments in a financial year.
- You can conduct as many transactions as you want to maintain the maximum transfer limit in a year.
- Outward remittance requires stating the purpose of the transfer.
- You would have to submit your PAN details during the money transfer.
- There might be the requirement of additional MYC documents depending on the purpose of the money transfer abroad.
Is it your first time sending money abroad? Are you seeking a reliable remittance provider to send maintenance money to abroad? Transcorp offers affordable, fast, and efficient outward remittance services through its multiple centres across India. The services are backed by RBI AD2-authorization, ensuring that your funds are in safe hands. Check out the range of their financial services here.