Your Questions Answered: How can I start saving for a rainy day in my late 20s?
banking.
For all money transfers abroad, it's important to adhere to the Liberalised Remittance Scheme (LRS) guidelines set by the Reserve Bank of India (RBI).With the evolving technology, India is certainly rooting for a boundaryless world which leads to multiple options for money transfers. The most commonly used routes are international wire transfer and a forex card.
Under LRS, resident individuals can remit up to USD 250,000 or equivalent foreign currency overseas per financial year for education expenses, maintenance of close relatives, leisure travel, etc. Also it’s mandatory to provide necessary documentation as specified by the RBI when making such remittances.For a child planning to study in the US or already in the US to pursue his/her education, Indian banks can provide multiple ways to manage large expenses such as education fees as well as day-to-day expenses.With the help of your existing banks in India, you can transfer money directly to your child's US bank account.
Similarly, you can also send funds directly to the institute’s US bank account for the education fees, with the requisite beneficiary details, including name, account number, and SWIFT/BIC code. Once the bank receives all the relevant details and the payment, either through the bank's online banking platform or a branch, the bank completes its due diligence and initiates the wire transfer.
It typically takes 1 to 3 business days for the funds to reach the beneficiary’s account.Another option is to pay funds through a forex card or travel card, which is a prepaid card that allows you to load US Dollars (USD) and can be utilised by your child studying in the US to manage their expenses. It functions like a credit card but is less expensive and
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