With the Indian rupee one of the most-liquid currencies among emerging markets, sending money out of India has always been a simple and easy process. However, there are certain regulations that Indian investors need to keep in mind while making foreign funds transfers.
The Reserve bank of India also known as the RBI has regulations in sending money out of the country. The regulations require individual investors to only transfer $250,000 per financial year. The Indian investors are restricted to $250k per investor per financial year. While making this transfer the RBI needs to be informed too.
The Central Bank must also be notified about monthly cash outflows in excess of US$50,000. This is relevant for investors from Turkey planning to accumulate funds systematically over a period of time in the US to finance the EB-5 investment.
While transferring the funds from a Bank complete and proper reasoning also needs to be provided while the funds transfer, The banks also levy a charge on the foreign funds transfer. The funds transfer Coe under the FEMA regulation also termed as Foreign exchange management act. The Liberalised remittance scheme (LRS) was increased in 2004 to simplify the Indian foreign exchange. LRS allows one individual to transfer $250k per year per individual.
While there are no restrictions on frequency of remittance, the individual must have an account at an authorized dealer (approved bank), and must designate a branch of that bank through which all remittances under LRS will be made. Indians are also allowed to open foreign accounts in banks outside India. While marking a foreign transfer the Indian nationals need to have their pan cards, no transaction can be completed without a pan card.
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