Payout

A wire transfer is an electronic transfer of money from one person or entity to another. It's one of the fastest ways to send money internationally.

How Wire Transfers Work:

• You provide your bank with the recipient's bank account details and the amount to be transferred
• Your bank sends a message to the recipient's bank through a secure system (like SWIFT)
• The recipient's bank receives the information and deposits the money into their account
• No physical money moves between banks; only the information about the payment changes hands

Wire transfers are secure, reliable, and typically complete within 1-5 business days for international transfers.

You can send money abroad from India through several methods:

Through Banks:

• Visit your bank branch or use online banking
• Fill out the A2 form (for foreign exchange transactions)
• Provide recipient's details including their bank account and SWIFT code
• Submit required documents (ID proof, purpose of remittance, etc.)

Through Money Transfer Operators:

• Register with a licensed money transfer service
• Complete their verification process
• Provide recipient details and transfer amount
• Pay for the transfer plus any applicable fees

Always compare exchange rates and fees before choosing a service to get the best value for your money.

The time it takes for an international money transfer to complete depends on several factors:

• Standard bank transfers: Typically 1-5 business days
• Express or priority transfers: 24-48 hours (for an additional fee)
• Money transfer services: Some offer same-day or next-day delivery

Factors that can affect transfer time include:

• The destination country and its banking system
• Time zone differences
• Banking holidays in either country
• Additional security checks for large amounts
• Completeness and accuracy of the provided information

For time-sensitive transfers, it's advisable to initiate the transfer a few days before the money is needed and choose an expedited service if necessary.

When sending money abroad from India, you'll typically need to provide the following documents:

Basic Documents:

• Valid ID proof (Passport, Aadhaar, PAN card, Voter ID)
• Completed A2 form (foreign exchange application form)
• Purpose declaration for the remittance
• Recipient's complete banking details (account number, SWIFT code, etc.)

Additional Documents (depending on purpose):

• For education: Admission letter, fee structure, loan approval letter
• For medical treatment: Medical reports, estimate from the hospital
• For family maintenance: Proof of relationship with the beneficiary
• For property purchase: Agreement papers, property documents

For amounts exceeding USD 25,000, additional documentation may be required to comply with RBI regulations.

Under the Reserve Bank of India's Liberalised Remittance Scheme (LRS), resident individuals can remit up to USD 250,000 (or its equivalent) per financial year (April to March) for permissible current and capital account transactions.

This limit applies to the total of all foreign exchange transactions in a financial year, including:

• Overseas education expenses
• Medical treatment abroad
• Maintenance of close relatives
• Foreign travel
• Investment in foreign securities or property
• Other permissible transactions

It's important to note that this limit is per person, so family members can each utilize their individual limits. Additionally, there may be specific documentation requirements for different types of remittances, especially as the amount increases.

The method by which a beneficiary can collect money sent from abroad depends on the transfer service used:

Bank Transfer:

• The money is directly deposited into the beneficiary's bank account
• No action is typically required by the recipient except to check their account
• The recipient may receive an SMS or email notification when funds arrive

Money Transfer Services:

• Bank deposit: Funds are sent directly to the recipient's bank account
• Cash pickup: The recipient visits a local agent location with identification and a transaction reference number
• Mobile wallet: Money is sent to the recipient's mobile wallet account
• Home delivery: In some countries, cash can be delivered to the recipient's address

For all collection methods, the beneficiary will typically need to provide identification and possibly the transaction reference number provided by the sender.

Under the Liberalised Remittance Scheme (LRS), you can send money from India for the maintenance of close relatives abroad to the following individuals:

Close relatives as defined under the Companies Act include:

• Spouse (husband/wife)
• Parents and step-parents
• Children and step-children
• Siblings (brothers and sisters)
• Spouse's parents (in-laws)
• Grandparents and grandchildren

When sending money for maintenance of close relatives, you'll need to:

• Provide proof of relationship with the beneficiary (marriage certificate, birth certificate, etc.)
• Complete the A2 form indicating "Maintenance of close relatives" as the purpose
• Submit a declaration that the funds will be used for maintenance purposes

The annual limit for such remittances falls under the overall LRS limit of USD 250,000 per financial year per individual.