Many people use the word ‘remittance’ to refer to when they send money from India to other countries. “Remittance” or “money transfers” refers to electronic transfers of funds from individuals to recipients abroad. Remittance transfers include transfers to friends, family members for reasons more than one: education, medical purpose, gifting, maintenance for loved ones or donation for a cause, or for businesses in a foreign country. Remittance transfers may be referred to informally as “international wires,” “international money transfers,” or “remittances.”
The World Bank estimated that the global market for foreign remittance transfers, in which consumers electronically transfer funds to persons in another country, exceeded $440 billion in 2010. Transfers both to and from India make up a significant portion of that number, as the number of Indians living abroad is one of the highest in the world.
The Reserve Bank of India has set purposes through which one may send money from India. These purposes include things such as paying for a close relative’s expenses abroad, paying for foreign educational expenses etc. Other common purposes include things such as immigration or employment abroad. As of recently RBI has liberalized the requirements for making a money transfer from India and now one can make a foreign remittance by just claiming to send a gift or a donation abroad to someone. RBI requires minimal documentation for remittances upto US$ 25,000. On top of this RBI’s Liberalised Remittance Scheme further simplifies foreign exchange facilities available to resident individuals. As per the Scheme, resident individuals may remit up to USD 200,000 per financial year for any permitted capital and current account transactions or a combination of both. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the Scheme. The facility under the Scheme is in addition to those already available for private travel, business travel, studies, medical treatment, etc.,
Additional information about remittances from India can be found at www.bookmyforex.com. The site also allows you to book a money transfer from India at live and extremely competitive exchange rates and guarantees excellent and speedy service.