Remittance

Remittance is the amount of money that an Indian receives as a form of payment, gift, or grant from abroad, and vice versa. We work with outward remittances as it only means when and the individual receives money from abroad.

Any amount sent or received as a form of payment or a gift/ grant is a remittance. Outward remittance is when an Indian sends money to a foreign party as a form of payment or gift/grant excluding Nepal and Bhutan, (as mentioned in FEMA, 1999).

To give sufficient foreign exchange services and effective client assistance, the Reserve Bank has chosen to allow licenses to specific dealers by approving them as Authorized Dealer – Category II to attempt a scope of none trade current account transactions. Likewise, Authorized Dealer – Category II are approved to deliver/dispatch foreign exchange for the following none trade current account transactions :

(a) Private visits,

(b) Remittance by tour administrators/travel agents to overseas agent/ principles/ hotels/inns,

(c) Business travel,

(d) Fee for cooperation in worldwide meetings and specialised training,

(e) Remittance for cooperation in global events/ competitions (towards training, sponsorship, and prize cash),

(f) Film shooting,

(g) Medical treatment abroad,

(h) Disbursement of crew wages,

(I) foreign education,

(j) Remittance under educational tie-up arrangements with foreign universities and colleges,

(k) Remittance towards charges for assessments held in India and abroad and extra score sheets for GRE, TOEFL, and so forth

(l) Employment and training, assessment fees for abroad employment forms,

(m) Emigration and emigration consultancy charges,

(n) Skills/qualification assessment of expenses for expecting migrants,

(o) Visa fees,

(p) Processing fees for the registration of documents as needed by the Portuguese and/or different Governments,

(q) Registration/ membership/ subscription fees for International Organizations