Whether you plan to study abroad, cover a family member’s medical costs overseas, or pay for emigration formalities, sending money outside India comes with specific rules— and responsibilities. Governed by the Reserve Bank of India (RBI), these rules are commonly known as the RBI guidelines for outward remittance.
This blog post simplifies the RBI guidelines for foreign remittance and explains how you can legally and securely send money from India using trusted AD-II dealers like us, Multimoney Forex.
What is Outward Remittance?
Outward remittance is when an Indian resident sends foreign exchange to a beneficiary abroad. Common purposes include:
- Education
- Medical treatment
- Travel expenses
- Visa or exam fees
- Gifts to relatives
- Investment in foreign assets
These remittances fall under the Liberalised Remittance Scheme (LRS), with the RBI setting an upper limit of USD 250,000 per individual per financial year for permissible current or capital account transactions. This scheme was introduced on February 4, 2004. The LRS limit has been revised in stages consistent with prevailing macro and microeconomic conditions.
The LRS Scheme is not available to corporations, partnership firms, Trusts etc.
RBI Guidelines For Outward Remittance From India
Let us understand the RBI guidelines for outward remittance with the help of the table.
| Category | Details |
| Remittance Limit (Individuals) | USD 250,000 per financial year (April-March) under LRS |
| Applicable To | Resident individuals (including minors) |
| Required Forms | Form A2, PAN, sometimes Form 15CA/15CB |
| TCS | 20% TCS (except for education and medical purposes). The TCS limit on foreign remittance is hiked from Rs 7 lakh currently to Rs 10 lakh in Budget 2025. |
| Prohibited Purposes | Lottery, banned magazines and speculative trading |
| Authorized Channels | RBI-licensed AD-I & AD-II dealers |
Who Can Send Money Abroad?
The RBI allows resident individuals foreign outward remittance for specific purposes such as:
- Tuition and living expenses for foreign education
- Paying for medical treatment abroad
- Travel and visa-related costs
- Gifting or maintenance of close relatives
- Emigration consultancy fees
- Overseas exam fees (e.g., GRE, GMAT, IELTS)
- Private visits abroad
Businesses, too, can send remittances for purposes like import of goods/services or investment in overseas subsidiaries, but often require additional compliance.
RBI Guidelines for Outward Remittance for Companies
Indian companies can send money abroad under the automatic or approval route, depending on:
- Type of transaction
- The Amount to be sent
- Nature of the relationship with the foreign beneficiary
Permitted Business Remittance Purposes
- Import of goods and services
- Overseas advertising and promotion
- Technical consultancy fees
- Software subscription and licensing
- Investment in Joint Ventures (JVs) or Wholly Owned Subsidiaries (WOS)
Multimoney Forex: Your RBI-Authorized Outward Remittance Partner
As an RBI Authorized Dealer (AD-II), Multimoney Forex helps you safely and conveniently remit funds for a wide range of needs under RBI regulations. With more than 30 branches nationwide and 20-plus years of experience, you can rest assured of the best-in-class services for sending outward remittance from India.
Visit any of our branches across India or book online to start transferring money abroad today.
Our Services Include:
- Overseas Education Fees & Living Expenses
- Exam Fees for GRE, TOEFL, SAT, etc.
- Visa Fees & Emigration Consultancy
- Medical Treatment Abroad
- Private Visits & Travel Expenses
- Maintenance of Close Relatives
- Emigration Fees
We guide you through all the documentation for sending money abroad from India, so your money moves securely and compliantly. Ready to remit? Contact Us or visit your nearest Multimoney Forex branch.
Documentation Checklist for Outward Remittance
| Document | Purpose |
| PAN Card | Mandatory for LRS transactions |
| Form A2 | Declaration of remittance purpose |
| Passport Copy | Identity verification |
| Visa / Admission Letter | For education/emigration remittances |
| Invoice / Bill | For medical, consultancy, or exam payments |
For tax clearance, Form 15CA/CB may be required for some payments.
What You Cannot Do Under RBI Guidelines for Outward Remittance
As per RBI guidelines, you cannot:
- Send money abroad for a lottery or sweepstakes
- Fund margin trading or speculative investments
- Remit to countries listed under FATF non-compliant jurisdictions
Why RBI Regulates Outward Remittances?
RBI sets and monitors guidelines or rules for sending money abroad from India. The RBI’s goal is to:
- Prevent money laundering
- Ensure foreign exchange stability
- Track all major international transactions
Hence, the RBI sets clear conditions for sending funds abroad. Ignoring these can lead to blocked transactions or even penalties.
Final Say
Understanding the RBI guidelines for outward remittance is not just about avoiding trouble—it’s about sending money with confidence.
Whether you’re a student, tourist, business owner, or NRI, Multimoney Forex offers:
- RBI-compliant service
- Competitive exchange rates
- Dedicated assistance for documentation
- Peace of mind
Start your outward remittance journey with Multimoney Forex—India’s trusted name in cross-border money transfer.