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Looking to send money abroad? Know about outward remittances
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Options for transferring funds from India to overseas
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Type of accounts you can use for transferring money as an NRI
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FAQ’s on taxation, documentation and processes relating to outward remittances
The below content is purely for informational purposes and is not intended to constitute advisory of any kind. Please note, these are in-depth articles which are best viewed on large screen devices like laptops, desktops and tablets. The position reflected in this article has been updated as of March 15, 2025 basis the Union Budget 2025-2026 updates.
Whether you are a Resident Indian (RI) sending money to your family living abroad, or a Non-Resident Indian (NRI) repatriating funds earned in India to your country of residence, it is important to adhere to the rules and regulations under the Foreign Exchange Management Act (FEMA).
You can easily transfer funds across borders to various countries and banks. The transaction involves electronically debiting your account and crediting the recipient's account.
To make transfers, you will typically need the recipient's bank account details. This includes their account number, bank name and branch information, SWIFT code, and the contact details of both the sender and the receiver, etc. It is advisable to consult your bank for specific guidance on these requirements
Convenient ways for NRIs to send money overseas
If you are an NRI looking for easy options to send money from India to your overseas country of residence, you can utilise one of the following accounts:
Non-Resident External (NRE) account
Non-Resident Ordinary (NRO) account
Foreign Currency Non-Resident Bank (FCNR (B)) account
On repatriating current income such as rent, interest, dividends, professional fees, or pension. Capital income such as proceeds from maturity of Fixed Deposit (FD), sale of property, redemption of mutual funds or shares, etc. can be repatriated upto a maximum of USD 1 million per Financial Year (April-March) cumulatively from all your NRO accounts held in India.
On the other hand, funds from NRE or FCNR (B) accounts can be repatriated without any upper limit.
ICICI Bank customers can remit funds overseas through digital mode such as Retail Internet Banking (RIB) or iMobile App, the bank’s mobile banking platform, besides making requests at any of the ICICI Bank branches in India and select geographies overseas.
Did you know?
NRIs can transfer upto USD 1 million from their NRO account to NRE account in a Financial Year (April-March).
Transfer money internationally as a resident Indian
Are you an Indian resident with children studying abroad or family living overseas? Sending money abroad has become more convenient under the prevailing Liberalised Remittance Scheme (LRS) which permits remittances of up to USD 250,000 per financial year. There are various efficient ways available that have made international money transfers intuitive and faster.
- Online money transfer:
Various banks and fintech players provide digital platforms that allow you to send money abroad from India. ICICI Bank offers Money2World, which facilitates easy and secure money transfers online. It is also available on the ‘iMobile' app, the bank’s mobile banking platform.
- Wire transfers from branch:
Indian banks offer the facility to send money to international banks abroad through wire transfers. These transactions, when initiated at bank branches, typically allow for higher transaction limits, compared to online remittance channels. Consult your bank for more information.
- Unified Payment Interface (UPI) transfer:
Previously limited to domestic transactions, the Unified Payment Interface (UPI) now supports cross-border transfers, thanks to NPCI International Payments Limited (NIPL), Currently operational for the India-Singapore corridor, the service is expected to expand to othercountries.
- Foreign currency demand draft (FCDD):
This method involves requesting a physical demand draft at a bank branch in India, which can be presented to the beneficiary’s bank overseas. ICICI Bank provides FCDDs in multiple currencies including USD, GBP, SGD, EURO, CAD, and AUD. Fees for issuing FCDDs vary across banks.
Resident Indians are liable to pay taxes (Tax Collected at Source) when they make a foreign outward remittance depending upon the remittance amount and purpose for which they are sending money abroad. Read more on the applicability of taxes. For expert advice, consult your tax advisor or explore the FAQs section below.
Did you know?
Under LRS, international debit cards can be used by a resident individual for drawing cash or making payments to merchants overseas during their visit abroad for permissible current account transactions within the limit of USD 250,000 per year.
Funds transferred under LRS are allowed for various purposes, including foreign travel, education expenses, investment in foreign assets and more, within the specified limit. Additionally, for any outward remittance transaction, there is an exchange rate conversion and/or transaction fee involved, depending upon the chosen transfer method (e.g., branch or online remittance channel). These fees fall within the specified limit of USD 250,000 set under LRS.
Students and their parents can also visit ICICI Bank Campus Power to get comprehensive insights on pursuing higher education in India and abroad.
Permitted purpose of remittance under LRS
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Studies abroad |
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Maintenance of relatives |
You can send money to your close relatives such as brother (or stepbrother), daughter, son-in-law, father (or stepfather), mother (or stepmother), member of Hindu Undivided Family (HUF), sister, son (or stepson), daughter-in-law and spouse. |
Travel |
You can transfer money for the following travelling expenses:
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Gifting |
Money sent as a gift to your family and friends abroad. |
Transfer to your own account |
You can deposit funds to your own bank account abroad. |
Others |
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Prohibitions under LRS
- Purchase of lottery tickets/sweepstakes or banned magazines
- Remitting money from India for margins or margin calls to overseas exchanges or counterparties
- Purchase of Foreign Currency Convertible Bonds (FCCBs) issued by Indian companies in the overseas secondary market
- Foreign exchange trading abroad
- Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as "non-cooperative countries and territories"
- Remittances, directly or indirectly, to individuals and entities identified as significant risks for committing acts of terrorism, as advised separately by the Reserve Bank of India (RBI)
- Gifting by a resident to another resident in foreign currency for the credit of the latter's foreign currency account held abroad under LRS
Conclusion
With the availability of various banking and non-banking platforms, it has become easier than ever for you to transfer funds across borders. You must understand the timeframe, exchange rates and fees associated with each platform is to ensure a smooth and hassle-free transaction suited to your needs. You should consult your bank or service provider in India for specific guidelines and recommendations regarding international money transfers.
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Frequently Asked Questions
What does Tax Collected at Source (TCS) under LRS mean?
The Finance Act, 2020, amended Section 206C of the Income Tax Act, 1961, and introduced TCS on remittance under LRS subject to the applicable threshold limit. TCS tracks and regulates outward remittances to compliance with taxation rules. The TCS rates vary depending on the purpose and amount transferred.
Is TCS applicable to NRIs?
No, TCS applies only to resident Indians
Can TCS on remittances be claimed during Income Tax filing?
TCS is applicable at the Permanent Account Number (PAN) level. TCS payments can be used to offset tax liability at the time of filing your Income Tax return.
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Disclaimer:
The contents of this article/infographic are meant solely for informational purposes. The contents are generic in nature and are not intended to serve as a substitute for specific advice on any matter whatsoever. The information is subject to updation, completion and verification and the applicable norms may keep changing materially from time to time. This information is also not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to applicable laws or would subject ICICI Bank Limited/its affiliates to any licensing or registration requirements. ICICI Bank Limited/its affiliates and their representatives shall not be liable for any direct or indirect losses or liability incurred arising in connection with any decision taken by any person on the basis of this content. Please conduct your own due diligence and consult your financial advisor before making any decision. Terms and conditions of ICICI Bank and third parties apply. ICICI Bank is not responsible for third party services. Nothing contained herein shall constitute or be deemed to constitute an advice, invitation or solicitation to avail any products/ services of third parties.