What is Inward Remittance?
Foreign inward remittance refers to the inflow of money into the home account from abroad. These transactions are done electronically on the EDPMS platform and an e-Foreign Inward Remittance Certificate (eFIRC) and are governed by the Foreign Exchange Management Act (FEMA).
What are the compliances for inward remittance?
The expansion of global trade and the Indian populace abroad has led to a massive inflow of foreign remittance. In India, these inflows should conform to the guidelines set by the RBI and FEMA.
What are the routes of inward remittance?
There are various routes of inward remittances available. Two such routes which are commonly allowed include the following:
What is an outward remittance?
As the nomenclature suggests, outward remittance is the transfer of money from India to a foreign country, except for countries like Nepal and Bhutan. These transactions are for specific purposes that must be on the list of proposed and approved objectives under FEMA.
What are some acceptable purposes for outward remittance?
FEMA regulates the outflow of money from India, which is done to ensure the usage for the correct purpose and not fund crime or illegal operations. Below is the list of some of the approved goals for outward remittance.
What are the compliances for outward remittance?
The RBI has put an upper cap of $2,50,000 on outward remittances from India either in a one-time transaction or spread across multiple transfers. Moreover, from April 2018, the PAN card has become mandatory for every outward remittance.
Individuals and companies must be aware of all the guidelines and limitations when moving money to and from India. Therefore, be sure to read all documentation requirements and regulations before entering into contracts with parties abroad.
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