Types of Remittances in India: Prune
There are two types of remittances in India and each has its purpose.
Any transfer out of the country is called outward remittance. For Example, if your son is studying abroad and you transfer money from your Indian Bank Account that is an outward remittance for you.
When your son is abroad and they receive money from you, then it becomes an inward remittance from them. Similarly, when your parents in India receive money from you from outside India that an Inward remittance from them.
What is allowed for Remittance?
The Reserve Bank of India has issued guidelines for remittance. These Transactions fall under the Foreign Exchange Management Act (FEMA) Foreign Exchange Management Act has put together a list of reasons for which you can receive money from India or send money to India. This is the list:
- Educational Programs
- University Tuition Fees
- Medical Treatment
- Financial Support
- Travel Expenses
- Donations (to India)
- Investing in India
- Proceeds from Domestic sale/deposits of assets (only applicable for PIO and NRIs)
To transfer money abroad from India, request a copy of the Pan card and complete the remittance form. If you are transfer money to India, You’ll have to get details from your local bank for the documentation.