The National Electronic Fund Transfer or NEFT has emerged as the fastest and most easiest way to remit money.
It has cut across geographical barriers and you can remit money to even the smallest of towns and cities in India.
Can you remit money abroad through NEFT?
No, you cannot send money to all places abroad through the NEFT. The only place that you can send money is to Nepal and that too through the Indo-Nepal Remittance Facility Scheme.
How to remit money if NEFT not allowed to send money abroad?
There are various other means by which you can send money abroad to your near and dear ones. One of them is through wire transfer from a bank. Forex authorized delaers like Thomas Cook can also be used for the purpose of sending money abroad.
Now, if you remit money abroad you have to comply with certain guidelines.
What are the limits to send money abroad?
You cannot send amounts in excess of $US dollar 250,000 per financial year. Now, there are various requirements that are stipulated by the law depending on the need of remittance. For example, if you are remitting money to a student then you would need a PAN Card.
In case the amount of remittance abroad exceeds the limit of Rs 10 lakhs, banks may ask you to handover a cancelled cheque.
In case you are planning to remit money and are working abroad, there are more documents that maybe required. For example, form 15 CA and 15 CB as applicable may have to be furnished.
Where the person remitting the money and beneficiary are the same, which is normally the case, a confirmation of the residential status of remitter in the form of a self-declaration would be necessary.This is only if you are workign abroad.
The rules of sending money abroad would also vary depending on the need like maintaining relatives abroad, emmigration needs, medical treatment abroad, private visit to a foreign country etc.
The rules would have to be checked with the bank or the authorized dealer so appointed by the Reserve Bank of India.
While it may not be possible to send money through NEFT aboard, you can use many of the mechanisms like wire transfer and transfer through banks.
In all cases there is a compliance that would be necessary in conformity with the rules laid down under the provisions of the FEMA Act.
Appropriate declaration may also be necessary from time to time for the purpose. In all cases it is very important to remember that you must comply with the rules, as any violation can lead to very harsh measures.
One good thing is that these days the forex position of the country is pretty comfortable as compared to the earlier days, where forex outward remittance was very strict due to low forex reserves.