Remittances FAQ’s:

Q 1. What is an Outward Remittance ?

Ans: Outward Remittance is a transfer of money in foreign exchange, by a resident in India to a beneficiary situated outside the country (except for Nepal, Bhutan, North Korea and Iran) for a purpose as approved under FEMA (Foreign Exchange Management Act). You may send money abroad to a beneficiary for various purposes including education, employment abroad, emigration, foreign travel, medical treatment, etc.

Q 2. Who is eligible to do an Outward Remittance ?

Ans: Resident of India can do an Outward Remittance transaction.

Q 3. What is the Liberalized Remittances Scheme? Who is eligible to remit under this scheme ?

Ans: The Liberalized Remittance Scheme is a facility provided by the RBI for all resident individuals including minors for remittance up to USD 250,000 per financial year for permissible current or capital account transactions or a combination of both. This facility will not be available to corporate, partnership firms, HUF, Trusts, etc.

Q 4. What are the remittances under Liberalized Remittance Scheme I can do through the Smart Fx App ?

Ans: The transactions permitted are as follows:

Student Remittances:

a. University Fees
b. Overseas Education - GIC

Other Remittances:

a. Private Visits
b. Fee for participation in global conferences and specialized training
c. Remittance for participation in international events / competitions (towards training, sponsorship and prize money)
d. Emigration Fees
e. Emigration Consultancy Fees
f. Employment and processing, assessment fees for overseas job applications,
g. Medical Treatment abroad,
h. Examination Fees
i. Visa fees

Q 5. What are the handling charges for remittance ?

Ans: WSFx will charge a handling charge of Rs.250 for every remittance transaction.

Q 6. What are Nostro bank charges ?

Ans: Nostro bank charges are fee/charges levied by the Nostro bank of the sending bank for effecting the remittances. You will have to select if the sender (remitter) or the beneficiary will bear the charges. If remitter is selected additional charges will be collected else, if beneficiary is selected the final amount will be less the Nostro bank charges.

Q 7. How do i know if my funds are transferred ? What confirmation will I get once the remittance is done ?

Ans: Swift Copy refers to a document that acts as a confirmation of payment made from your bank and informs the beneficiary of the value date of the transaction. Once the remittance is completed, a copy of SWIFT/ Debit Advice will be available in the Smart Fx App for download.

Q 8. Will I need to submit my transactional KYC documents personally ?

Ans: Yes, you will have to submit your self-attested transactional KYC documents physically. Our service executive will collect the documents from your residence/office address. This will also be applicable to customers who have done their Video KYC through the WSFx Smart Fx App.

Q 9. Whether third party payment is allowed for outward remittance transaction ?

Ans: No, third party payments are not allowed by RBI for outward remittance transactions. Payment can only be done by the following:

a. Self
b. Spouse
c. Father or Step Father
d. Mother or Step Mother
e. Son and step son
f. Son's Wife
g. Daughter
h. Daughter's husband
i. Brother or Step brother
j. Sister or Step Sister

Q 10. How much foreign exchange can one send as gift / donation to a person resident outside India ?

Ans: Any person resident in India can remit upto US$5,000 in any one year as a gift to a person residing outside India or as donation to a charitable/educational / religious /cultural organization outside India. Remittances exceeding the limit require prior permission from the Reserve Bank.

Q 11. Can I take forex in my prepaid card/remit money to my overseas bank account for paying my university fees ?

Ans: Yes, foreign exchange for studies studying abroad can be taken in all forms except currency where a limit is of USD 3000 applies. Pre-paid cards can be re-loaded by students’ parents / guardians at any time (In Workings hours and Working days).

A direct remittance service to the institute you are getting enrolled in can also be done through the Smart Fx App.

Q 12. What is the foreign exchange entitlement (limit) for education/ studies overseas ?

Ans: In general, foreign exchange entitlement comes under USD 2,50,000 per annum (If not consumed any part of it in any other purpose stated under LRS).
Remittances exceeding USD 250000 will be allowed based on the estimate received from the institute abroad.

Q 13. Is it mandatory for resident individuals to have Permanent Account Number (PAN) for sending outward remittances under the Scheme ?

Ans: Yes, it is mandatory for the resident individual to provide his/her Permanent Account Number (PAN) for all transactions under LRS made through Authorized Persons.

Q 14. Are there any restrictions on the frequency of the remittance ?

Ans: There are no restrictions on the frequency of remittances under LRS. However, the total amount of foreign exchange purchased from or remitted through, all sources in India during a financial year should be within the cumulative limit of USD 2,50,000.

Once a remittance is made for an amount up to USD 2,50,000 during the financial year, a resident individual would not be eligible to make any further remittances under this scheme, even if the proceeds of the investments have been brought back into the country.

Q 15. What are the requirements to be complied with by the remitter ?

Ans: For remittances pertaining to permissible AD II transactions, the customer has to furnish Form A-2 along with supporting documents (ID/Address proof) regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme.

Q 16. Can remittances be made only in US Dollars ?

Ans: The remittances can be made in any freely convertible foreign currency. Through our App you can remit for the following currencies:

  • United States dollar - USD
  • Canadian Dollar - CAD
  • European euro- EUR
  • Pound Sterling – GBP
  • Australian Dollar - AUD
  • Arab Emirates Dirham – AED
  • Singapore Dollar – SGD
  • New Zealand Dollar - NZD
  • Hong Kong Dollar - HKD
  • South African Rand - ZAR
  • Norwegian Krone -NOK
  • Swedish Krona - SEK
  • Saudi Riyal - SAR
  • Danish Krone - DKK
  • Swiss Franc - CHF
  • Japanese Yen - JPY

Q 17. What are the modes of doing an outward remittance ?

Ans: Money can be sent abroad through the following modes:

  • Wire Transfer
  • Foreign Currency Demand Draft

Q 18. What is the process to do an outward remittance ?

Ans: You can do an outward remittance through the Smart Fx App or by visiting any of the WSFx branches & submit forms/documents with necessary beneficiary and transaction details.

Q 19. How much foreign exchange can a person send as gift or donation to a person resident outside India ?

Ans: Gifts up to USD 2000 per financial year can be sent on the basis of self-declaration, Gifts / Donations can also be sent under Liberalized Remittance Scheme (LRS) upto USD 2,50,000, The facility will be per financial year basis (April-March).

Q 20. What is the outward remittance limit for resident individual including Small Value Remittances ?

Ans: Resident Individuals are allowed to send Outward Remittances under Liberalized Remittance Scheme (LRS) up to USD 250,000 per financial year for any permissible current account transactions.