For resident Indians, outward remittances are governed by the Reserve Bank of India’s Liberalised Remittance Scheme (LRS). For NRIs, transfers from NRE and NRO Accounts are governed by separate FEMA provisions. In both cases, knowing the rules, the documentation and the right banking channels ensures that every international transfer goes through smoothly.
The ability to send money abroad from India involves a clear regulatory framework and a defined process. Understanding both helps you transfer funds accurately, efficiently and in full compliance with applicable rules.
The Liberalised Remittance Scheme for Resident Indians
The LRS is the primary framework under which resident Indians can legally send money abroad for a range of permitted purposes.
- Resident individuals can remit up to USD 2,50,000 (or equivalent) per financial year under LRS for permitted purposes
- Permitted purposes include overseas education, foreign travel, medical treatment abroad, maintenance of relatives overseas or personal gifts, etc.
- Investment in foreign securities, immovable property abroad and foreign currency accounts is also permitted within the LRS annual limit
- Tax Collected at Source (TCS) is applicable on LRS remittances above the specified thresholds
Note: Refer to the Income Tax Act, 2025 and current RBI guidelines for applicable rates - Remittances for trading in foreign exchange or margin calls are not permitted under the LRS framework
How NRIs Can Send Money Abroad From India
For NRIs, the ability to send money abroad from Indian accounts depends on the type of account the funds are held in.
- Funds in an NRE Account are fully and freely repatriable. NRIs can transfer the full principal and interest to any overseas account at any time without restriction
- Funds in an NRO Account are subject to repatriation limits. Capital income can be repatriated up to USD 1 million (or equivalent) per financial year, subject to tax compliance
- Current income in an NRO Account, such as rent, dividends and pension, can be repatriated up to the amount of such income received
- FCNR Account maturity proceeds are fully repatriable. The foreign currency principal and interest can be transferred overseas or converted to rupees at maturity
Documentation Required to Send Money Abroad
Having the right documentation ready before initiating any transfer reduces processing delays when you send money abroad.
- PAN card: Mandatory for all outward remittances under LRS. The PAN is linked to the remittance for tax compliance purposes
- LRS declaration form: A self declaration confirming the purpose of remittance and that the LRS annual limit has not been exceeded for the financial year
- Supporting documents by purpose: Fee invoices for education, medical certificates for treatment, property documents for investment remittances, etc.
- Beneficiary account details: The correct beneficiary account details along with the intermediary/corresponding bank account details, are required for the overseas account receiving the funds
How to Initiate an Outward Remittance
Digital banking channels offer a convenient way for both residents and NRIs to send money abroad, with full transparency on rates and fees.
- Log in to Net Banking or the bank’s mobile app, such as the ICICI Bank iMobile app and navigate to the fund transfer section or Foreign Exchange section
- Select the source account, purpose of remittance and destination country, then enter the beneficiary’s account details
- Review the applicable exchange rate and processing fee before confirming. The platform shows the expected amount the beneficiary will receive
- Submit the LRS declaration and any required supporting documents through the digital channel as prompted
- Many financial institutions in India provide a transaction reference number on confirmation for tracking and follow up queries
Exchange Rates and Processing Timelines
The exchange rate and processing timeline are two significant factors to consider when you send money abroad.
- Exchange rates fluctuate based on global currency market conditions. The rate applicable is typically the rate at the time the transaction is processed
- Standard international transfers may take 24 to 48 hours to reach the beneficiary’s overseas account,depending on the destination
- The remittance platform displays the applicable rate and estimated delivery timeline before the transaction is confirmed
- For planned future dated transfers, some banks offer forward rate options to lock in the exchange rate for a defined period
Security and Compliance When Sending Money Abroad
Every outward remittance must be initiated through secure, authorised channels to protect against fraud and ensure regulatory compliance.
- Always initiate transfers through the bank’s official website or mobile app.
Disclaimer: Never through third party links, unsolicited messages or unverified platforms - Verify beneficiary account details carefully before confirming. Errors in the IBAN or bank identifier code can result in misdirected transfers
- Strong OTP based authentication is required for all outward international transfers through digital banking channels
- Retain the transaction reference number and any LRS declaration copies for follow-up tracking and for ITR preparation
Final Thoughts
The ability to send money abroad from India is well supported by both the regulatory framework and the digital banking infrastructure available today. Whether you are a resident Indian operating under LRS or an NRI transferring from an NRE or NRO Account, financial institutions such as ICICI Bank provide secure, transparent and efficient outward remittance services to help manage cross border transfers with confidence and full regulatory compliance.
