Outward Remittance

Payments

Quick Definition

Outward Remittance refers to the transfer of money from one country to another, typically sent abroad for payments, investments, or personal purposes.

Detailed Explanation

Outward Remittance involves sending funds from India to a foreign country. It is commonly used for purposes like education fees, medical expenses, travel, investments, or business payments.

In India, outward remittances are regulated by the Reserve Bank of India under the Liberalised Remittance Scheme (LRS).

Common Uses of Outward Remittance

  • Paying tuition fees abroad
  • Sending money to family overseas
  • Investing in foreign assets
  • Import payments by businesses

Key Features

  • Subject to exchange rates
  • May include transfer fees
  • Requires compliance with regulations

Why Outward Remittance Matters

  • Supports international transactions
  • Facilitates global investments
  • Important for global trade and education

Charges & Limits

  • Bank or service fees apply
  • Annual limits under LRS (as per RBI guidelines)

Example

"An individual sends $5,000 from India to pay university fees in the USA—this is outward remittance."

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