The outward remittances refer to the process of sending money in foreign locations from the home country to your family members, friends or relatives. This procedure is governed by lots of regulations. The outward remittances in India are done mainly through banks. If you like to do the outward remittance, you should ensure that you are dealing with the genuine people and firms because you cannot trust any individual or a financial firm for sending your money. You need to select a bank that has international footprint and good reputation for making your job almost effortless.
Once you have selected a bank to do the outward remittances for you, the next step is to select your mode of transfer. One alternative is to receive a Foreign Currency Demand Draft (FCDD) that will be denominated in foreign currency and it is drawn in favour of the recipient. In this case, the beneficiary does not require an account with the same bank. Another alternative is to send the money via wire transfer. Another word for the wire transfer is the Swift transfer that refers to the wire transfer via Society for Worldwide Interbank Financial Telecommunications. It is a secure and standardised system that allows the banks to correspond with each other. The charges of the wire transfer are higher as compared to the FCCD, however it is very fast and transfer can be done within 24 hours. On the other hand, a demand draft is physically sent abroad and it takes time for clearance.
You are required to complete and submit a remittance request form where you can mention the details like amount of money and the source of money. You are also need to fill the Form A2 and may need a certificate from a chartered accountant. Before the transaction takes place, the customer is told about the forex rate and you should also check the same with the forex rate card of the bank. RBI does not allow the remittances for the other purposes like gambling, margin trading and others. You need read about the rules and regulations related to the remittances of the country before sending the remittance.