All About the Foreign Remittance Declaration Form A2

Over the past few years, studying or working abroad has become a very popular trend. In fact, according to Bureau of Immigration (BoI) statistics, approximately 7.65 lakh Indian students went to different foreign countries to pursue their education until October 2023. In this context, with the increase in relocation to foreign territories, international transactions have become as normal as a morning walk.

However, handling assets, particularly sending and receiving money from abroad, is a critical issue that troubles everyone. This is where the Foreign Remittance Declaration Form A2 comes in. So, whether you are an individual sending or receiving money abroad, Form A2 is an important document that you need to be aware of.

So, let's delve into all the things about Form A2, including what it is, why it is important, and how to fill out the Form A2 application for remittance.

What is Form A2 and why it is important?

Foreign Remittance Declaration Form A2 is a document used in India to transfer money abroad. Additionally, Form A2's significance lies in its function of enabling and overseeing cross-border transactions in India.

Before beginning a new journey for any outward remittance of foreign currency, this form must be submitted to the authorised dealer (a bank or other financial institution) that has been permitted by the Reserve Bank of India.

Form A2 details include:

i) Personal details: Name, address, contact information and Permanent Account Number (PAN) of the remitter.

ii) Remittance details: The amount, purpose of the remittance and beneficiary details.

iii) Mode of payment: Specify the mode of payment.

iv) Declarations: Declaration confirming the accuracy of the information provided and that the remittance is for a legitimate purpose under the LRS guidelines.

How to fill out Form A2

Filling out the Form F2 application process may appear onerous, but it is rather simple. Although the design of the form provided by the licenced dealer may differ, the purpose of the form is generally the same:

The form typically consists of two sections:

Section A: Application part

Step 1: Information about Applicant (remitter)

This step requires the remitter to disclose their name, address, and PAN number.

Step 2: Details of foreign exchange

This step needs the name of the currency, amount and purpose of remittance.

Step 3: Detail of beneficiary abroad

This stage requires information about the beneficiary's name, address, country, account details and correspondent bank charges borne by.

Section B: Declaration part

Step 4: Detail of remittance

Details about the amount of remittance and the mode of payment.

Be ready for the journey!

In a nutshell, filling out Form A2 is a straightforward and stress-free process. Just keep in mind that adequate documentation is essential for a successful payment.

Frequently Asked Questions (FAQs)

Q: Who is the remitter?

The remitter is the person whose bank account money is being transferred abroad.

Q: What is Form A2's significant function?

The main purpose of Form A2 lies in its function of enabling and overseeing cross-border transactions in India.

Q: Is Form A2 mandatory for foreign transactions?

Yes, it is mandatory under FEMA regulation in India.

Q: Where can I find Form A2?

You can source the form from a financial institution or bank that deals with foreign transactions.

Q: How much can you remit every year?

According to RBI guidelines, the current amount is $2,50,000.

Q: What is the Form A2 application fee?

It is free of charge.