Guidelines governing Forex based International Fund Transfers

• Minor Indian residents (However, for minor remitters, the LRS declaration form must be countersigned by the minor’s natural guardian).

• Corporates
• Partnership firms
• HUF or Trusts

• Maintenance of Close Relatives: Remittance to support family members living abroad.
• Gifts and Donations: Sending gifts and donations to foreign entities or individuals.
• Investments: Investment in foreign stocks, property, or other financial instruments.
• Emigration and Employment: Remittances related to emigration/employment abroad.
• Business:: Payments for import of goods and services (incl. consultancy) and participation in trade fairs and exhibitions.
• Medical Treatment: Remittances for medical treatment abroad.
• Any other Current Account transaction which is not covered under the definition of Current Account in FEMA 1999.

• Dividend Remittance: Remittance of dividends by any company to which the requirement of dividend balancing is applicable. These restrictions require that FX outflow via dividends not exceed the company’s export earnings.
• Payment of export commission:
  • For State Credit except for commission up to 10% of the invoice value of exports of tea/tobacco.
  • For equity investment in JVs/WoS abroad of Indian companies.
• Interest Remittance: Interest remittance on funds in NR Special Rupee A/c & payments for “call back services” of phones.
• FCCB Purchase: Remittances for the purchase of Foreign Currency Convertible Bonds (FCCBs) issued by Indian companies in the overseas secondary market.
• Remittances to FATF countries: Capital account remittances to countries identified by the Financial Action Task Force (FATF) as non-co-operative countries & territories.
• Gift Remittance in FCY: Gift by a resident to another resident in FCY for the credit of the latter’s FCY A/c held abroad or in offshore areas under LRS.
• Remittance to high-risk individuals: Remittances to those individuals or entities, which are identified as posing a significant risk of terrorism, as suggested by the RBI.

• For current account transactions, we ensure due diligence in opening, operation, and maintenance of the account for existing as well as new customers.

Mandatory documents

• Form A2 for all foreign exchange transactions.
• Documents evidencing proof of Purpose (some examples are listed below);
  • Admission letters from educational universities
  • Medical bills
  • Invoices for goods/services
• Ensuring full compliance with Know Your Customer (KYC) norms.
• PAN card
• Utilization Certificate: In some cases, proof of fund use might be needed later.

• Remittances under the Scheme can be combined with respect to family members, subject to individual family members understanding and following its T&Cs.
• Remittances under the Scheme are allowed only with respect to permissible current or capital accounts or a combination of both.
• Under this scheme, a resident individual can also invest in mutual funds, Bonds, unrated debt securities, promissory notes, etc., and other financial instruments.
• This scheme is not available for capital account remittances to countries found by the Financial Action Task Force (FATF) as non-co-operative and having risk of terrorism.