Transferring foreign currency from India to any international location is subject to the rules of the Foreign Exchange Management Act (FEMA). Sending foreign currency out of India is under greater scrutiny by the government than inward remittances. The Reserve Bank of India has the authority to regulate the norms for transferring foreign currency in public interest. Till 2013, one could send not more that USD 75,000 every financial year from India to abroad. In 2014, the RBI increased the limit from USD 75,000 to USD 1, 25,000. From 2015 onwards, the limit has been further increased to USD 2, 50,000 under the Liberalised Remittance Scheme or LRS.
What is Liberalised Remittance Scheme or LRS?
The Liberalised Remittance Scheme was introduced in February 2004, allowing citizens to transfer foreign currency from India to overseas accounts for a permitted set of current or capital account transactions or combination of both. The Reserve Bank of India permits to transfer foreign currency abroad for a select few purposes that include education fee, medical treatment costs, investment in shares or property, donations or gifts, for travel purpose, and for maintenance of relatives staying abroad.
If you want to transfer foreign currency exceeding USD 2, 50,000 per year then you have to take special permission from the Reserve Bank of India. Central Government strictly prohibits “remittance of lottery winnings; remittance of income from racing/riding, etc., or any other hobby; remittance for purchase of lottery tickets, banned / proscribed magazines, football pools, sweepstakes, etc.; remittance of dividend by any company to which the requirement of dividend balancing is applicable; payment of commission on exports under Rupee State Credit Route except commission up to 10% of invoice value of exports of tea and tobacco; payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies; remittance of interest income on foreign currency held in Non-Resident Special Rupee (Account) Scheme and payment related to “call back services” of telephones.” Reserve Bank of India also prohibits Indian entities from making direct investments in entities situated in 'non co-operative countries and territories', identified by the inter-governmental body FATF.
How to transfer foreign currency from India to Australia?
If you want to transfer foreign currency from India to Australia online, you can do it through wire transfer or online banking. These are fast and secure methods of transferring foreign currency to international accounts.
Send a wire transfer to loved ones at best forex rates online!