Sometimes, your loved ones living abroad can face a financial emergency. For instance, your child studying overseas might need money to pay their tuition fees or one of your family members might need quick funds to pay their rent.
In such situations, you can help them out. Yes, you can send them money immediately from your savings account in India.
The Foreign Exchange Management Act (FEMA) allows you to remit funds abroad for any of the following purposes:
- Personal travel to any country except Nepal and Bhutan
- Employment abroad
- Education abroad
- Emigration
- Maintenance of close relatives living abroad
- Business travel
- Medical expenses
- Gifts or donations
If you want to send money abroad for any of the above reasons, you can do so in numerous ways. Here are some of the most convenient ways to send money to NRIs online.
Some of the Most Convenient Ways to Send Money to NRIs Online.
Here are some ways to send money to NRIs Online.
- SWIFT Wire Transfers to Overseas Accounts
- Transferring Money to the NRO Account
- Transferring Money to the NRE Account
1. SWIFT Wire Transfers to Overseas Accounts
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a quick and efficient online wire transfer method. However, this method will work only if your family members’ overseas banks can facilitate a SWIFT transfer.
2. Transferring Money to the NRO Account
Many NRIs have an NRO account which helps them manage their money earned in India. If your loved one has an NRO account, you can make a cash deposit in that account in Indian currency. Then, they can repatriate funds from their NRO accounts up to the equivalent of 1 million USD per financial year.
Here Are the Documents Needed to Repatriate Funds From NRO Accounts:
- Application Form
- Form A2
- A copy of Form 15 CB (to be provided by your Chartered Accountant)
- A copy of Form 15 CA (to be completed online through the Indian Income Tax Authorities website, printed out, and signed.)
- Signed photocopy of your PAN Card
- A copy of their income tax returns filed in India.
3. Transferring Money to the NRE Account
NRIs have an NRE account to manage their foreign earnings. In an NRE account, one can only make deposits in foreign currencies. So, if you are an Indian resident, you cannot directly transfer money to your friend’s NRE account.
However, you can deposit money in their NRO account, and then they can transfer money from NRO to an NRE account.
Here Are the Documents Required:
- Signed cheque or letter for funds transfer from NRO to NRE savings account.
- FEMA declaration, a document stating that you are eligible to transfer funds from your NRO account to your NRE account.
- A copy of Form 15 CB (to be provided by your Chartered Accountant)
- A copy of Form 15 CA (to be completed online through the Indian Income Tax Authorities website). The form has four parts- Part A, Part B, Part C, and Part D. So, you should fill only those sections that apply to you. Once you submit the form, print out a copy and sign it. Also, retain a copy of the acknowledgment slip.
To Sum Up
If you want to offer financial help to your NRI friend in trying times, you can do so conveniently with these online methods.
When it comes to transferring money from India to anywhere in the world, choose a reputed bank or service provider. Ideally, your bank should offer 24/7 customer support, a widespread international network, and state-of-the-art digital financial services.
