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Key Takeaways: There are two types of remittances in India and each has its purpose. Read on to know more about what these are and the types of accounts you will need to facilitate these services.
As an NRI, you may send money to India for various reasons - to support your family, make investments or maintain an NRE account. This transfer of funds from overseas to India and back is known as a remittance.
Two Types of Remittances
There are two types of remittances based on the transaction purpose: Inward Remittance and Outward Remittance. Let us understand them briefly.
How do you choose?
When it comes to choosing the right bank for initiating an international money transfer, there are many factors to consider. For example, you might be looking for the quickest transaction time or preferential rates. Our detailed guide on International money transfer tips every NRI should follow will undoubtedly help you make the right choice.
Ways of sending money
While you can send money through cheques, demand drafts, telegraphic or wire transfers, many banks also facilitate online remittance. The best banks are those that have entirely paperless processes for more seamless and faster transfers. Even though you are miles away, you can still send money seamlessly and safely across borders.
What is allowed?1 2
The Reserve Bank of India (RBI) has issued guidelines regulating the inward and outward remittance in India. These transactions fall under the Foreign Exchange Management Act (FEMA). FEMA has put together a list of reasons for which you can send money to India or receive money (from India). These are the broad categories:
For sending money abroad from India, banks request for a copy of the PAN card and the completed remittance form. If you are sending money to India, you will have to check with your local bank for the documentation.
Final Note: The RBI guidelines on FEMA get updated from time to time. Being aware of policy changes is necessary before initiating a remittance request. If you are looking for the best way to park your foreign earnings, you can open an NRE account. To know more, click here.
With DBS Treasures, you can transfer money overseas with our internet banking facities. Enjoy competitive remittance rates with same day transfers. Open an NRE account with us to get started. Apply Now!