All you need to Know about Outward Remittance

According to a 2020 United Nations report, India has the largest expatriates’ population in the world, with close to 18 million Indians living abroad. Understandably, there is often a need to send money abroad to friends or relatives working, studying, or settled in other parts of the globe. This is where an outward remittance comes into the picture. An outward remittance, in the simplest terms, is the transfer of funds by an individual from India to a beneficiary outside India.

Benefits of Outward Remittance

 Regulated by the Reserve Bank of India (RBI), an outward remittance is done on a secure banking network, restricting the chances of financial fraud against both the sender and recipient.
 Outward remittance allows the sender to quickly make an international money transfer if their friend or family abroad is in urgent need of funds.
 Outward remittances can be made for wide-ranging purposes covered under the RBI Liberalised Remittance Scheme (LRS). These can be for personal purposes such as medical, education, and travel expenses as well as business purposes like investment in shares and purchase of property.
 Thanks to digital banking, sending an outward remittance payment is a fairly simple and swift procedure that ensures the recipient is provided a timely financial safety net in their hour of need.

How to Make an Outward Remittance Payment

Broadly speaking, the international money transfer process involves three major steps. It is also dependent on the service you opt for.
Step #1: If the beneficiary of your remittance has a bank account, you may arrange the transfer with a bank. Make sure to get the complete lowdown on the exchange rate being offered, the fees, and hidden costs, if any added along the way through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. If the beneficiary does not have a bank account, you could use an international wire transfer specialist to send the money.
Step #2: Depending on the payment service you choose, you will have to furnish different information to make sure the transfer process goes smoothly and the intended beneficiary receives the money. You will usually need to provide details about yourself and the beneficiary including your name, address, and account number, PAN details, purpose of the remittance, who will pay the remittance fees, the recipient’s full name and address, bank account details, and SWIFT code among others.
Step #3: The final step involves completing the transaction. Whether through a bank or a specialist money transfer service, sending your outward remittance online is a fairly simple and easy procedure. However, there are some traditional banks that call for customers to walk into a branch and complete the paperwork associated with an outward remittance in person. Double-check all the details before sending the payment.
According to RBI guidelines, it is mandatory for the sender to submit details of their PAN card with every international money transfer. Additionally, an individual is permitted to make foreign outward remittances of up to $250, 000 in a financial year.
Today, there are several banks that allow you to seamlessly send money abroad. One such bank is IndusInd Bank. With an extensive network, IndusInd Bank allows you to safely and quickly send funds to your near and dear ones, no matter where in the world they may be. Visit any IndusInd Bank Forex Enabled branch or make an online transfer by visiting www.indusforex.com today.