How to Send Money from India to USA

send money from India to USA

Some of the main concerns any NRI would have is about the procedure to send money abroad from India, what are the tax considerations when sending money and what is the maximum amount of transfer. In short, all these rules relating to money transfer from India is regulated by the rules of the Foreign Exchange Management Act (FERA). Indian residents can send money abroad for FERA approved purposes such as education, gifts, and maintenance costs for a relative, medical treatments, charity work etc.

Where Can We Send Money Abroad From India?

Almost all banks in India now have the facility to transfer your funds abroad. But, ideally, you should transfer your funds from the bank in which you hold your account. This is because of the Know Your Customer (KYC) rules mandated by the Reserve Bank of India. The bank where you hold your account will have your information, such as your identity, your permanent address proof etc. There are two procedures to send money abroad from India. One is a wired transfer and the other is a foreign currency demand draft. The wired transfer is a faster and more secure way of sending money to and from India.

Which Currencies Can We Send Out Money From India?

Funds can be sent out of India in various currencies. These include US Dollars, Euros, British Sterling Pound, Singapore Dollars, Canadian Dollars, Australian Dollars, Hong Kong Dollars, Swiss Franc, Arab Emirates Dirham, Saudi Arabian Riyal, Qatari Riyal, Norwegian Kroner, Danish Kroner, Swedish Kroner, New Zealand Dollar, and Japanese Yen.

Steps To Transfer Money Abroad

Here are the steps you will need to follow to transfer your money abroad

  • Contact the bank where you have had an account for over a year. In case you have not held the account for more than a year, then you will also have to furnish your previous income tax papers or copies of your previous bank statements.
  • The bank will guide you on all the documents you will need to furnish. One of the most important forms you will have to fill out is called “Application cum Declaration Form A2”. Your bank will be able to assist you in filling out this form further.
  • The purpose of Transfer of Funds will usually be accepted by the bank on your self-declaration.
  • Once all the documents are in place, the money will be transferred either by wired transfer or a foreign currency demand draft. This has to be chosen by you.

Maximum Limit On Money Transfer Abroad for Different Purposes

Depending on the self-declared purpose of transfer of funds from India, you will be faced with certain upper limits on money transfer. It is a good idea for you to know them, and see if it suits your purpose before making the money transfer. Obviously, this will help you avoid legal consequences later on.


Private Visits: For private visits to a foreign country, Indian residents can transfer up to USD 10,000 per the calendar year.

Business Visits: For business visits, you are eligible to transfer an amount of USD 25,000

Indian Students Studying Abroad: Indian students studying abroad can avail up to USD 100,000 per academic year. However, if they can produce estimates from the university they are going to attend, then the maximum cap for this can also be increased.

Medical Treatment abroad: If you are going for a medical check-up or a treatment abroad, then you can avail up to USD 100,000. If you are able to provide estimates from the concerned hospital, then the maximum limit can be increased.

Maintenance of Relatives: Indians are allowed to transfer up to USD 100,000 towards the maintenance of close relatives in a calendar year.

Gift Remittances: A maximum amount of USD 5,000 per annum can be sent abroad in gift remittances.

Miscellaneous: An amount of USD 25,000 can be remitted abroad towards miscellaneous purposes.

Money Transfer Under The Liberalized Remittances Scheme

The Liberalized Remittances Scheme was announced in the year 2004 in order to make foreign remittances much easier for Indian citizens. Under this scheme, any citizen of India, including minors, is allowed to send up to USD 250,000 abroad per financial year for any permitted capital/current account transactions. Some of the transactions include:

  • Buying property abroad
  • Gifts and donations abroad
  • Investing in shares and securities abroad
  • Opening foreign currency accounts in foreign banks for the above purposes

You must note that all Indian citizens, whether minor or not, are eligible to transfer funds under this scheme. You must have an account with an authorized bank and a PAN card. A PAN card is mandatory for anyone to send funds abroad from India. So, these are the procedures for transferring money abroad when you are in India.