What is the limit for foreign remittance from the UK to India

Published on:
January 20, 2023
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What is the limit for foreign remittance from the UK to India?

The world has become increasingly interconnected, with people and businesses in different countries relying on each other more than ever before. This has led to an increase in international financial transactions, such as foreign remittances. Foreign remittances are the movement of money from one country to another, usually for the purpose of supporting family members, investing in a business, or purchasing goods and services.

In the UK, foreign remittances are regulated by the Financial Conduct Authority (FCA). The FCA sets limits on how much money can be sent to certain countries, including India. This article will explore the limits for foreign remittance from the UK to India, so you can better understand the regulations that apply when sending money abroad.

What is Foreign Remittance?

Foreign remittance is the transfer of money from one country to another. It can be done for a variety of reasons, such as to support family members, invest in a business, or purchase goods and services.

Foreign remittances are particularly important for countries that have a large number of citizens living abroad. For example, in the UK there are over 1.2 million Indian-born citizens, and India is the top recipient of remittances from the UK.

What is the limit for foreign remittance from the UK to India?

The FCA sets limits on foreign remittance from the UK to India. The limit is currently £50,000 per year, per person. This limit applies regardless of the purpose of the remittance and the number of transfers made.

It is important to note that this limit applies to the total amount that is sent, not the amount that is received. For example, if you send £30,000 to your family in India, and then send another £30,000 a few months later, this would exceed the limit.

What are the rules for foreign remittance from the UK to India?

In addition to the limit on the amount of money that can be sent, the FCA has set out a number of rules that must be followed when making a foreign remittance from the UK to India.

Firstly, the person sending the money must provide proof of identity, such as a valid passport or driving licence. Secondly, the person sending the money must provide proof of address, such as a recent utility bill or bank statement. Finally, the person sending the money must provide a breakdown of the purpose of the remittance, such as a statement of the goods and services being purchased.

What are the implications of exceeding the limit?

Exceeding the limit on foreign remittance from the UK to India can have serious implications. Firstly, the FCA could impose a financial penalty on the person sending the money, and secondly, the funds may be frozen and returned to the sender.

Therefore, it is important to ensure that you stay within the limit when sending money abroad. If you are uncertain about the limit or the rules that apply, you should consult an expert who can provide advice and assistance.

What other restrictions apply to foreign remittance from the UK to India?

In addition to the limit on the amount of money that can be sent, there are other restrictions that apply to foreign remittance from the UK to India. Firstly, the money must be sent via an FCA-regulated remittance provider. This ensures that the funds are securely transferred and that the sender has the necessary protection.

Secondly, the funds must be sent in the currency of the recipient country. In this case, the funds must be sent in Indian rupees. Finally, the funds must be sent directly to the recipient, rather than to a third-party.

Conclusion

Foreign remittance from the UK to India is regulated by the FCA and there is a limit of £50,000 per year, per person. In addition to this limit, there are a number of other restrictions that apply, such as the requirement to use an FCA-regulated remittance provider and the need to send the funds in the currency of the recipient country. It is important to understand and comply with these regulations, as exceeding the limit can have serious consequences.

If you are uncertain about the regulations that apply to foreign remittance from the UK to India, you should seek advice from an expert who can provide guidance and assistance.

References
By
Arnav Grover
Arnav is an experienced FinTech professional with a passion for product and strategy. He has a proven track record of success in developing and launching innovative products, with a particular focus on cross-border transfers. His most recent project saw him build a product with transfer volumes of $6 million monthly. He is a graduate of both IIM Calcutta and IIT Bombay, giving him a unique combination of business and technical acumen.

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