SBI For outward remittance from NRE / FCNR (B) account

The document provided is an official State Bank of India (SBI) application form used for making outward remittances from NRE (Non-Resident External) or FCNR (B) (Foreign Currency Non-Resident Bank) accounts.

Below are the key points regarding the requirements and procedures:

1. Remittance Request Details

• Account Types: The form covers transfers from NRE Savings, NRE Time Deposits, or FCNR (B) accounts.

   

• Transfer Mechanism: Funds are transferred to overseas beneficiaries via the SWIFT mechanism.

   

• Mandatory Information: Applicants must provide the beneficiary’s name, address, account number, bank name, branch name, and SWIFT code.

   

• Bank Charges: The applicant must specify whether foreign bank charges will be borne by the remitter or the beneficiary.

2. Form A2 Requirements

• Threshold for NRE: Form A2 is mandatory if the remittance from an NRE account exceeds USD 5,000 (or its equivalent).

• FCNR (B) Exception: Form A2 is not required for any remittance sent from an FCNR (B) account, regardless of the amount.

   

• Tax Information: A PAN Number is required for remittances exceeding USD 25,000 and for all capital account transactions.

   

3. Legal Declarations (FEMA 1999)

• Compliance: Applicants must declare that the transaction does not contravene or evade any provisions of the Foreign Exchange Management Act (FEMA), 1999.

• LRS Limits: For remittances under the Liberalised Remittance Scheme (LRS), the applicant must certify that the total amount remitted from all sources in India during the financial year stays within the RBI-prescribed annual limit.

   

• Reporting: The bank is required to report any suspected evasion or refusal to comply with documentation requests to the Reserve Bank of India (RBI).

4. Common Purpose Codes (FETERS)

The form includes an extensive list of “Purpose Codes” used to categorize the remittance for regulatory reporting. Common categories include:

• Travel: Business, pilgrimage, medical treatment, or education (S0301–S0306).

• Primary/Secondary Income: Family maintenance (S1301), personal gifts (S1302), and interest on NR deposits (S1402).

   

• Capital Account: Indian direct investment abroad in equity shares (S0003) or real estate (S0005).

   

• Banking Capital: Repatriation of Non-Resident deposits like FCNR(B) or NRE (S0014).