When you get selected to study in a foreign university, your parents will regularly have to transfer money abroad to you. It would include costs towards your tuition fee, maintenance and other expenses. You might wonder what the rules are how much money you can transfer from India to a foreign country. In this guide, we will help you understand the different rules and how you can save money dealing in foreign exchange. What is the LRS Scheme about? When you transfer money abroad, also known as outward remittance, it gets categorised under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India. It includes transactions made for the purpose of education. Under the scheme, any resident Indian can transfer up to USD 250,000 for each financial year (April-March) for current or capital account transactions. It could also be a combination of both. The limit for forex facility, which includes cash, traveller’s cheque and forex card, is also USD 250,000. Important LRS rules you must know Here are some essential LRS rules that you must be aware before you transfer money abroad. Special circumstances to transfer more money It is possible to transfer more than the prescribed limit of USD 250,000 in some special circumstances. It should include medical expenses or education costs, which may get inflated. In both cases, you will have to produce essential documents as proof. Maximum amount you can carry during the travel As an Indian resident, you can carry foreign currency, in notes or coins, up to USD 3000 for each visit. You can take the balance amount either in the form of traveller’s cheque, demand draft or forex cards. Payment method If the transaction amount of your foreign exchange is less than INR 50,000, you can make the payment in cash. If the amount gets exceeded, you will have to make the transfer via RTGS/NEFT (online banking) or debit/credit card. Documents PAN Card is the most vital identity proof that you will have to submit at the time of transaction. Producing a PAN Card helps avoid the transfer of money above the LRS limit. It enables the tracking of all your remittances abroad to prevent fraudulent practices. Flight ticket The cost of your air ticket will be a part of your LRS entitlement of USD 250,000 for each financial year. Inward remittance There are no restrictions on the amount a person can transfer from a foreign country into India. If you decide to work in a foreign country on a part-time basis when you study, you can send as much amount as you wish. The country of your study might have certain restrictions on the transfer. International credit card If you have a foreign currency account in a bank in India or abroad, you can opt for an international credit card. You can make the payment for such cards through your bank accounts or outward remittance, which does not have any transaction limit. Currency declaration form If you return to India during your vacations, you can carry foreign currency with you. However, if you have more than USD 10,000 in cash or traveller’s cheque, you will need to declare it to the Customs Authorities at the airport. The rule is also applicable when you carry notes that exceed the USD 5,000 amount. Unspent forex If you come back from the foreign country, you can keep with you currency notes or traveller’s cheques whose value is less than USD 2,000 for an infinite time. However, any amount exceeding this limit will need to be surrendered to an authorised forex agency. The rule is not applicable for forex cards, and you can hold the amount in it till the expiry date. Bottom line Studying in a foreign country means that you will have to send money abroad on a regular basis. You will need a reliable forex agency that can make money transfer a simple task for you. An RBI-approved authorised dealers category – II agency like Orient Exchange can help you with all your money transfer needs. Contact us today to know more about services.