What is the outward remittance?
Outward remittance is a transfer of funds in the form of foreign exchange by a person from India, to a beneficiary outside India (except for Nepal and Bhutan) for any bonafide purposes as permissible under Foreign Exchange Management Act (FEMA), 1999.
What is the process of outward remittance?
An Outward Remittance is a process of transferring money in the form of foreign exchange, by a resident in a particular country, for instance, say India, to a beneficiary who is located outside the other country (except for Nepal and Bhutan) for any purpose and that is been approved under the Foreign Exchange …
What is FCY outward remittance?
TLDR Points. An outward remittance is the transfer of funds from India to a foreign country. You can use outward remittance to cover tuition fee, living expenses, pay for medical treatments abroad, buy assets, and more.
How long is foreign outward remittance?
Processing Time – The request for foreign outward remittance submitted through this facility will be checked and processed by HDFC Bank at the earliest but may take up to the end of next working day for foreign exchange transactions (‘working day’ as per FEDAI rules). 6.
What are the documents required for outward remittance?
Retail Outward Remittance Application – A2 cum LRS Declaration.
What is the limit for foreign remittance?
If there is no tax liability, the sum can also be collected as a refund.” Under the Reserve Bank of India’s liberalised remittances scheme, individuals can remit a maximum of $250,000 abroad every year.
What is purpose of remittance?
Key Takeaways: There are two types of remittances in India and each has its purpose. 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.
What is an example of remittance?
Remittance is the act of sending in money to pay for something. An example of remittance is what a customer sends in the mail when a bill is received. Remittance is defined as money that is sent to pay for something. An example of remittance is the check sent to pay for the treadmill you bought on TV.
What are two types of remittance?
There are two types of remittances based on the transaction purpose:
- Outward Remittance: Any transfer out of a country is called outward remittance.
- Inward Remittance: When your children are overseas and they receive funds from you, then it becomes an inward remittance for them.
What is the purpose of remittance?
Many people use remittance as a means to send money back to their home country to provide financial support. Remittances are also used to aid developing countries and make up a portion of the gross domestic product (GDP).