"Remittances to India, the (South Asian) region's largest economy and the world's largest remittance recipient, decreased by 2.1 per cent in 2015, to $68.9 billion. This marks the first decline in remittances since 2009," the World Bank report said.

The US has been the leading source of remittances globally in every year since 1983.Russia,Saudi Arabia, andSwitzerlandhave been the next largest senders of remittances since 2007.

Most of the remittances happen by the conventional channel of agents, likeWestern Union,Ria Money Transfer, Al Fardan Exchange, Al Ansari Exchange,Redha Al Ansari Exchange, Xpress Money,UAE Exchange, Intel Express, Merchantrade Asia Sdn Bhd andMoneyGram. However, with the increasing relevance and reach of the Internet, online andmobile phone money transfersfrom companies such asXendpay,Remit2India,Azimo, OrbitRemit,BookMyForexandXoom.comhave grown significantly.

There are various schemes and regulations that limit how much money can be remitted and for what purpose.

Restrictions and Regulations under FEMA

Current any transactions that are prohibited or require outside approval are listed in Section 2 (j) of FEMA. Schedule I of this section lists transactions for which foreign exchange withdrawal is prohibited, Schedule II lists transactions that require approval fromthe Central Government, and Schedule III lists transactions that require approval from the RBI.

Prohibited transactions include:

• Lottery winnings;
• Income from racing; and,
• For the purchase of lottery tickets, football pools, and banned magazines.

There are many remittance transactions that require RBI approval if they are above a certainamount. For example, private visits per financial year need approval if they exceed US$10,000, and payment for consultancy services procured by Indian companies executing infrastructure projects need RBI approval if they are more than US$10,000,000 per project. Remittance for business visits need RBI approval if they exceed US$25,000.

Remitting from NRO (Non-Resident Ordinary)Accounts

The most common accounts from which expatriates remit money are NROs. An NRO account is a savings account where the holder can maintain and manage their income earned in India.

Remittances from NRO accounts are limited toUS$1,000,000 per financial year (April-March). To remit from an NRO account, two documents need to be submitted: Form 15 CA, and Form 15 CB.Although these documents can be obtained online, the process of dealing with a chartered accountant is easier with a consultant present in India.

Liberalized Remittance Scheme (LRS)

The Liberalized Remittance Scheme (LRS) was announced in 2004 as a step towards further simplification of Indias foreign exchange services. It allows individuals, including minors, to remit up to $125,000 per financial year. There are no restrictions on frequency of remittance, but the individual must have an account at an authorized dealer and must designate a branch of that bank, through which all remittances under LRS will be made.

Other Remittance Schemes

Remittances up to USD $100,000 per financial year may be made for the following purposes:

• Education abroad
• Employment abroad
• Emigration
• Maintenance of close relatives
• Medical treatment abroad

Telegraphic Transfers & Wire Transfers

Wire Transfers are considered most secure, reliable and globally accepted remittance mechanism in the world today. We send your money through Banks, which are member of a SWIFT Organization (Society for Worldwide Interbank Financial Telecommunication). Our banks wide network of correspondent banking relationship numbering more than 250 with the world's top banks covering virtually every part of the world ensuring transfer of funds of any amount covering all major currencies.

How does it work ?

1. Send us a cheque (may take couple of days) or send money through NEFT / RTGS from your local bank to our correspondent bank.
2. Ensure that your local bank mentions your account number, name address and purpose of remittance in the payment message to avoid any delay in processing your transaction.
3. Provide us Swift / BIC Code of receiving bank and country for remittances.