Can you gift money abroad from India?

• What is outward remittance?
• Permissible purposes for foreign remittance from India
• DCB Remit: Your hassle-free solution
• How to gift money abroad using DCB Remit?
• Things to keep in mind
• In a Nutshell

Outward remittance refers to valid and compliant money transfer from India to another country. This could include paying tuition fees, medical expenses, or gifting money. The Reserve Bank of India (RBI) regulates outward remittances under the Liberalised Remittance Scheme (LRS) for resident individuals. Gifts are one of the permissible purposes, for which remittance from India is permitted.

Under the Liberalised Remittance Scheme (LRS), any resident Indian can remit up to USD 250,000 in a financial year (April to March) for a variety of permissible purposes to send money abroad from India, including:

●    Education abroad: Pay tuition fees, hostel charges, and other educational expenses for a student.
●    Medical treatment: Cover medical expenses for you or a family member overseas.
●    Monetary support to loved ones: Support parents, spouse, or children living abroad.
●    Gift: Sending a monetary gift to a friend or family member for a special occasion.
●    Travel: For business trips or private visits.

This USD 250,000 limit is a combined annual amount for all your outward remittances from all sources. You can send multiple gifts throughout the year, but the total amount transferred for all purposes must not exceed this limit.

Money transfer from India to abroad is a breeze these days. You don’t have to stand in long queues at bank branches or handle complicated paperwork. DCB Remit makes the entire process simple, online, and transparent.

Here’s why DCB Remit stands out:

Fully online: Register, add beneficiary details, and transfer all from the comfort of your home.

Speedy transfers: In most cases, the money transfer from India reaches your loved one within 48 hours*

*Subject to fulfilment of compliance due diligence and complete online submission of all details and information as required by DCB Remit.

Competitive rates: Enjoy superior exchange rates with no hidden charges.

Transparency: No additional costs. Enjoy really affordable transfer fees, with no commission or hidden charges. For international remittance above ₹1,60,000, there are no transfer fees, thus ensuring your gift amount remains whole. For transfers up to ₹1,60,000, a nominal ₹1,000 fee is applicable.

Wide reach: Send money to over 20 countries from India.

Open to all: You don’t even need to maintain an account with DCB Bank. Any Indian resident can use DCB Remit by registering on the platform and use different payment options to transfer funds from your resident Indian bank account to DCB Remit. Thus, making foreign remittance refreshingly simple.

Let’s break it down step by step:

1. Register on DCB Remit:
Sign up using your PAN and basic details. Registration procedure is quick and free.

2. Add Beneficiary:
Enter the bank details of the person you want to send money to-this includes their name, account number, and SWIFT/ IBAN code depending on the country.

3. Choose Purpose:
Select “Gift” as the purpose of remittance. This is important for compliance under LRS.

4. Fund Your Transfer:
Transfer the INR equivalent from your bank account to DCB Remit through NEFT/ RTGS/ IMPS/ UPI.

5. Tracking in real-time:
Get up-to-date information on the progress of your transfer. The platform offers complete transparency at every stage. Once you book your transaction, you’ll receive status updates through:
•    Email and SMS Notifications: Get alerts as the transaction progresses.
•    Dashboard Access: Log in anytime to check the real-time status.

6.  Sit back & relax:
Once DCB Remit receives the funds and completes compliance checks, the money is sent abroad.

Tip: Keep your booking reference number handy for easy status checks.

While international money transfer from India to abroad for the purpose of gifting is simple with DCB Remit, here are a few things you should remember:

Provide accurate details: Double-check beneficiary details such as account number and SWIFT/ IBAN to avoid delays.

Stay within limits: Stay within the USD 250,000 annual limit under LRS.

Tax implications: While gifting is allowed, larger gifts may have tax implications either in India or in the recipient’s country. Always consult a tax advisor for big-ticket transfers.

Bank charges abroad: While DCB Remit doesn’t levy hidden charges, sometimes beneficiary or intermediary banks abroad may deduct small fees.

Foreign remittance no longer is stressful and gifting money to someone you care about shouldn't be a complicated procedure. You can offer and provide support from a distance, with the trusted and transparent DCB Remit online remittance service. DCB Remit enables transfer of funds using safe and secure procedure, and keeps you updated on the status of the transfer till the funds are received in the beneficiary’s bank account. 

So, the next time you wish to surprise a loved one overseas, skip the courier lines and complicated logistics. Instead, register/ log in to DCB Remit and send across a gift of happiness!

Learn More

Information on the website is for informational purposes only and does not constitute financial advice. Readers are advised to consult financial professionals for personalized advice before making decisions. The information on this blog is subject to change without notice and may become obsolete. DCB Bank reserves the right to modify, update, or remove content at any time. Savings Account and Fixed Deposit Interest rates are subject to change without prior notice. DCB Bank shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decision based on the contents and information mentioned in this blog. By accessing and using this blog, users agree to adhere to these terms and conditions. To read the complete disclaimer of DCB Bank, please click here