Sep 04, 2023
The procedure for NRIs (Non-Resident Indians) to remit money outside of India involves several steps. Here is a general overview of the process:
1. Choose Remittance Method: NRIs have several options to remit money from India to their overseas accounts. These options include bank wire transfers, online money transfer services, checks, demand drafts, and more. Choose the method that best suits your needs in terms of cost, speed, and convenience.
2. Open an NRE/NRO Account: If you haven't already, you'll need to have an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account with an Indian bank. An NRE account is used for maintaining foreign income in INR, while an NRO account is used for Indian income.
3. Provide Required Documentation: Depending on the remittance amount and purpose, you might need to provide certain documents such as identification proof, proof of residence abroad, PAN (Permanent Account Number) card, etc. These requirements can vary between banks and remittance methods.
4. Obtain a CA Certificate: If the remittance amount is substantial, the bank may require you to obtain a 15 CB certificate from a Chartered Accountant (CA). This certificate confirms that taxes have been duly paid on the income being remitted.
5. Complete the Remittance Request: You'll need to fill out a remittance request form provided by your bank. This form typically includes details like the beneficiary's name, bank account details, the purpose of remittance (e.g., education, investment, family maintenance), and the amount to be remitted.
6. Currency Conversion: If you're remitting in a currency other than INR, the bank will convert the amount based on the prevailing exchange rate. Keep in mind that exchange rates can impact the final amount received by the beneficiary.
7. Authorize the Transaction: Depending on the method you're using, you might need to provide authorization through your bank's online banking portal, a signed physical document, or other means of verification.
8. Pay Applicable Charges: Banks and remittance services may charge fees for processing the remittance. These charges can vary, so it's important to understand the fee structure before proceeding.
9. Track the Remittance: After initiating the remittance, you should receive a confirmation from your bank along with a reference number. You can use this reference number to track the progress of the remittance.
10. Receive Confirmation: Once the remittance is processed and successfully sent, you'll receive confirmation from the bank. This confirmation will include details about the amount remitted, the exchange rate used, fees deducted, and the expected delivery timeline.
11. Recipient Receives Funds: The funds will be credited to the beneficiary's overseas bank account as per the timeline mentioned in the confirmation.
We Jain Anurag & Associates, Chartered Accountants provide end-to-end services for NRI’s client to support their foreign remittance so you can connect with our expert team to avail the consultancy services related to foreign remittance.