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All About Outward Remittance from India: Prune

Are you planning to send money abroad from India? Then you'll need to make an outward remittance, also known as a foreign remittance. Outward remittance is the process of sending money from India to a foreign country. The Reserve Bank of India (RBI) governs the process and has set specific guidelines that need to be followed. Whether you're sending money for personal reasons or business purposes, it's essential to understand the process and the requirements to ensure a smooth and hassle-free transaction. In this blog post, we will dive into the details of outward remittances from India and provide you with all the necessary information you need before making a money transfer abroad. So, let's get started!

First, let's understand,

What is Outward Remittance?

Outward remittance is the process of sending money from India to a foreign country. Foreign remittance or outward remittance is a common practice for people who have migrated to other countries for work, education or other reasons. They need to send money back home to their families or for other purposes. Similarly, businesses may need to send money abroad to pay for imports, pay employees, or invest in foreign operations.

Foreign remittance is governed by the Foreign Exchange Management Act (FEMA), which regulates all cross-border transactions. It's essential to understand the rules and regulations set by FEMA to ensure a smooth and hassle-free remittance process.

Things to Know Before Choosing Outward Remittance

Here are some key points to keep in mind before sending money abroad through outward remittance:

1. Purpose of remittance: You must have a valid reason for sending money abroad, such as paying for education fees, medical expenses, or business transactions.

1. Documentation: You need to submit relevant documents, such as a copy of your passport, visa, and PAN card, to the bank for the remittance process.

1. Limitations: There is a limit on the amount of money that can be sent abroad in a financial year. As of 2023, the limit is USD 2,50,000 or approx. INR 2,04,50,250 per financial year.

1. Taxation: The amount remitted abroad is subject to taxation, and you need to pay the applicable taxes as per the Indian Income Tax Act.

1. Bank charges: Banks charge a fee for processing outward remittances, which can vary from bank to bank. It's essential to compare the fees charged by different banks before choosing one.

How to Send Money Abroad Online Through Prune?

Prune is a trusted platform that makes the outward remittance process easy and hassle-free. With Prune, you can transfer money to over 150 countries worldwide with competitive exchange rates and low fees. Here's how you can use Prune for outward remittance:

1. Sign up on the Prune website and choose 'Foreign Exchange'.
2. Enter the PIN code of the receiver's area.
3. Enter the amount you have to send and the payment method.
4. Enter your details, PAN number, and purpose of foreign remittance.
5. Upload scanned copies of your PAN Card, Aadhaar Card and Passport.
6. Review and confirm the transaction.
7. Track the status of your remittance on the Prune dashboard.

Outward remittance is a convenient way to send money abroad from India. With the proper documentation and adherence to FEMA guidelines, you can ensure a hiccup-free remittance process. Prune offers a safe and reliable platform to transfer money globally with competitive exchange rates and low fees.

 FAQS related to Foreign Remittance

What documents are required to send money abroad? 

You'll need the following documents to send money abroad.

1. Government-issued Id proof.

2. Pan Card.

3. Self-declaration regarding the relation with the beneficiary.

4. You will need to submit 'Proof of The Purpose' if you're sending a significant amount.

How long does it take for the money to reach the beneficiary?

The duration for foreign remittance varies depending on several factors, such as the destination country, the mode of transfer, and the intermediary banks involved in the transaction.

A cash pickup will arrive almost instantly, whereas a bank account transfer may take up to 3 hours.

How can the beneficiary collect the amount?

Before transferring money, you will be asked for the beneficiary's details, and you will get a unique code after the process is completed. The beneficiary will have to provide ID proof and your unique code at the time of collection for verification. 

What is the purpose of sending money abroad?

You can send money abroad for the reasons listed below:

• Educational Programs, 
• University Tuition Fees, 
• Medical Treatment, Emigration, 
• Travel Expenses, 
• Employment, 
• Film shooting, 
• Visa fee, 
• Gifts, 
• Donations (to India), 
• Investing in India, 
• Proceeds from Domestic sales/deposits of assets (only applicable for PIO and NRIs)
• 
  

Are there any transaction limits while transferring money abroad? 

The limit for sending money from India is USD 250,000 annually.

Are there any fees levied on my transaction?

Yes, foreign bank charges and GST are applicable.