Gone are the days when remitting funds back home while living and working abroad was a hassle. Nowadays, banks have come up with international remittance facilities for NRIs that allow them to transfer and receive money from their homeland with ease.
For instance, institutions like IndusInd Bank allow NRIs to remit funds from their NRE and NRO deposits to their overseas account through email instructions or by visiting the Forex enabled bank branches. Hence, sending money to your loved ones is now easier than ever!
What is International Remittance?
International remittance enables you to transfer or receive funds to another country. The transfer of funds is called remittance, and since it takes place between 2 different countries, it is termed international or foreign remittance. As an NRI, you can easily remit funds back home or receive money from your friends and family.
The process of bank remittance is straightforward and can even be done digitally. Various financial institutions like IndusInd Bank offer remittance services to help you extend your support to your family while living in another country.
Types of Remittance Facilities for NRIs
Depending on the purpose of the transaction, there are 2 kinds of remittance facilities available in India:
Outward Remittance
When you transfer funds out of a country, it’s called outward bank remittance. Suppose your loved ones live abroad or your children are studying overseas, and you need to support them, you can transfer funds from India to that country. To do this, you deposit funds with a remittance service provider and the money is paid to the recipient living overseas.
You can use outward remittance facilities to cover tuition fees, living expenses, medical treatments, donations, or buy assets abroad. Foreign transfers are regulated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA).
Inward Remittance
When the person living in a foreign country receives funds from home, this transaction can become inward remittance on their end. The cost of inward bank remittance can vary among banks. Factors such as the currency exchange rate, type of transfer, type of account, correspondent bank charges and the country from which the remittance is being made play a vital role in determining the cost.
Inward remittance can be done for a few reasons, such as education, travel expenses, medical treatment, donations, and gifts, or to provide financial support to the recipient.
When remitting funds internationally, you must choose the financial institution carefully. Look at factors like the transaction time, transfer limit, documents required and preferential rates to make the right choice. Also, make sure that your chosen bank or institution has been approved by RBI for international remittance.
IndusInd Bank follows a safe and systematic method to remit your funds held in India through your NRE and NRO accounts.
Parting Thoughts
Now that you have a better understanding of bank remittance facilities in India, you can take care of your finances no matter where you live. Leverage these facilities to stay connected to your loved ones and feel closer to home!
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