OUTWARD REMITTANCE: HOW TO SEND MONEY FROM INDIA TO US OR ABROAD?

About four months ago, before my trip to United States, I landed in a situation where I had to send a $500 check to my landlady in United States. And it was a disaster ! Never before I had known that it is so difficult to send money from India to other countries overseas. Perhaps the reason for this is that Indian Rupee is a managed currency. So RBI is obliged to keep a close watch on rupees which are converted to US Dollars or other international currencies. Sending money outside from India is also called outward remittance. After having one terrible experience, I think I now know some of the best ways to send money from India to a country abroad by forex online, which i will share in this post.

Sending a Check from India to USA or abroad

Remember that simply sending a Indian Rupee to someone outside does not work. The person located abroad will not be able to cash the check because of restrictions of Indian Government or RBI. Yes, you are right- you can receive a check in US dollars or other international currencies, RBI does not have a problem with that. but you cannot send a check in Indian Rupees. However you can send a check in US dollars or other international currency .

To do this, you will have to go through the following procedure:

1.            Go to your local Bank and ask them that you want a check in foreign currency. You will have to take a letter from the bank saying something like : you have a savings (or checking) account with them with account number so & so, and an amount of $500 US (or any other amount you want) may be debited from your account for the purpose of sending outward remittance.

2.            With this letter you will probably have to go to other Branch of your Bank which handles foreign currencies. There you give the letter and fill out some form and wait to receive your check in US dollars or other currency.

What you should carry along with you :

1.            You Passport.

2.            Your Bank Account Passbook.

3.            Reason for sending money outside and proof for that reason. For example, an email, or an invitation letter or any other such document.

Caution: The above process may look simple, but unfortunately it is terribly handled. The reason for this is perhaps outward remittance is not that common and officials are usually not aware of the procedure. I had first tried to get a US dollar check from Central Bank of India, and all that happened with me was different branches kept sending me to other branches and I never managed to get my overseas check. One of the bank manager asked me to furnish details of the bank account of the person to whom I was sending the dollar check. Isn't that ridiculous? If the person whom you are sending money to is not your close relative or friend why would he/she give her private bank account details to you? I almost hate Central Bank when I have to deal with transactions like this. I recommend you try State Bank of India, if you have an account with SBI. I got the job done in couple of hours without any harassment or having to furnish private bank account details of the person to whom I was sending outward remittance.

 

Source : http://niftyprediction.blogspot.in/2009/05/outward-remittance-how-to-send-money.html

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