4 MinsApril 26, 2022
Did you know? Under RBI’s Liberalised Remittance Scheme (LRS) any resident can transfer funds overseas up to the equivalent of USD 250,000 annually, and you can do so for a variety of purposes.
Axis Bank uses technology to provide several facilities to make this transfer process extremely smooth.
Consider these individuals and their stories:
- Oliver Fernandes sent USD 5,000 as a gift to his newborn grandson in the US.
- For 18 months, Arjan Singh has sent CAD 15,000 every quarter to his daughter Harpreet Kaur, studying in Canada.
- For four months now, Paresh Patil has sent AUD 3,000 every month to support his son Nikhil in Sydney, who recently lost his job.
All of them, as well as thousands of other Indians, can send money overseas to their relatives. This has become possible because of the Liberalised Remittance Scheme (LRS) launched by the Reserve Bank of India in 2004 and modern communication
Here is a primer on how the process of outward remittance works:
What are the purposes for which overseas fund transfers are allowed?
Transfers under LRS are permitted for various purposes - from foreign travel to education, medical expenses, gifts, emigration and employment. Indians can
also use the LRS to invest in permitted securities such as stocks and bonds of listed and unlisted companies, joint ventures and business partnerships.
Are there any purposes for which remittances are prohibited under the LRS?
The RBI has several reasonable restrictions to ensure that transfers under the LRS do not contravene Indian laws and treaties signed by the Indian
government relating to preventing money laundering and financing of terror. The information is readily available on RBI’s website.
Which currency can such an outward remittance be processed in?
Outward remittances can be in any freely convertible currency.
How does the process work?
Transferring money overseas can be done with the help of any entity that the RBI has licensed as an Authorised Dealer (AD) of foreign currency. Axis Bank is one such AD.
These transfers can be done either by visiting any Axis Bank branch (both for Axis Bank customers as well as non-customers), Internet Banking and Mobile Banking (for Axis Bank customers).
Transfer using Axis Bank’s branch
Just walk into any Axis Bank branch between 9.30 a.m. and 4 p.m. fill up the required documentation and request for the transfer.
Transfer using Axis Bank’s Internet Banking Platform or the Axis Mobile App
Using net banking or the mobile app you can transfer funds to over 150 countries and in 100 currencies. All you need to do is log in to your
account, add a payee and then fill up all the legally required details. Depending on the purpose of the transfer, the bank may ask for additional details.
You can also track the status of your transfer 24*7.
Axis Assured Pay
You could also look at Axis Assured Pay, a value-added service which ensures that the beneficiary receives the entire remitted amount in full. This service is currently available only in US dollars, and only
in Category B branches of Axis Bank.
To know more about this offering, click here.
For more information on Axis Bank’s international wire transfer services, click here.
Disclaimer: The Source, a content creation and curation firm has authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision. Names mentioned in this article are fictitious in nature and only for explanatory purposes