{"id":5707,"date":"2024-06-12T10:31:09","date_gmt":"2024-06-12T10:31:09","guid":{"rendered":"https:\/\/www.extravelmoney.com\/blog\/?p=5707"},"modified":"2025-04-09T06:59:42","modified_gmt":"2025-04-09T06:59:42","slug":"valid-purposes-for-indians-to-send-money-abroad","status":"publish","type":"post","link":"https:\/\/www.extravelmoney.com\/blog\/valid-purposes-for-indians-to-send-money-abroad\/","title":{"rendered":"Top 10 RBI Purpose Codes and Reasons for Sending Money Abroad from India"},"content":{"rendered":"\n
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Can a person send funds abroad from India freely for any reason without any restrictions?<\/p>\n\n\n\n

The answer is a big \u201cNO\u201d. You are allowed to make international transactions only for the purposes listed by RBI.<\/p>\n\n\n\n

So a remitter must always mention the reason to the bank or service provider.<\/p>\n\n\n\n

Read on to learn about the 10 valid personal purposes for Indians to send money abroad and the corresponding RBI purpose codes.<\/p>\n\n\n\n

Also Read: 8 Mistakes To Avoid When Transferring Money From India<\/a><\/strong><\/p>\n\n\n\n

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RBI Codes for the Top 10 Purposes<\/h1>\n\n\n\n

These codes are used by the bank or the money transfer services initiating the transfer from India. They indicate the purpose of transfer. <\/p>\n\n\n\n

Purpose codes are input in the “Wire Transfer\/Telegraphic Transfer” message generated under the SWIFT network. <\/p>\n\n\n\n

Sl.No<\/strong><\/td>Purpose<\/strong><\/td>RBI Code<\/strong><\/td><\/tr>
1.<\/td>Overseas Education University Account<\/td>S1107<\/td><\/tr>
2.<\/td>GIC\/ Blocked Account Deposit<\/td>S0023<\/td><\/tr>
3.<\/td>Fee for Participation in Global Conferences\/Training<\/td>S0301<\/td><\/tr>
4.<\/td>Overseas Education Student Account<\/td>S1301<\/td><\/tr>
5.<\/td>Maintenance of Close Relative Abroad<\/td>S1301<\/td><\/tr>
6.<\/td>Gift Remittance<\/td>S1302<\/td><\/tr>
7.<\/td>Emigration Consultancy Fee<\/td>S1012<\/td><\/tr>
8.<\/td>Visa Fees<\/td>S1012<\/td><\/tr>
9.<\/td>Medical Treatment<\/td>S1108<\/td><\/tr>
10.<\/td>NRI Repatriation<\/td>S0014<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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10 Valid Purposes for Money Transfer from India<\/h1>\n\n\n\n
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1. Overseas University Fee Payment<\/h2>\n\n\n\n

Numerous Indian students join overseas universities and reside abroad. <\/p>\n\n\n\n

As part of the enrollment process, the students or their parents have to transfer money into the university\u2019s bank account for tuition, hostel, membership fees, etc.<\/p>\n\n\n\n

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2. GIC\/ Blocked Account Deposit<\/h2>\n\n\n\n

GIC (Guaranteed Investment Certificate) is an investment account in a Canadian bank for international students studying in Canada. <\/p>\n\n\n\n

Similar to GIC is the Blocked Account<\/a>. It is a special type of bank account in Germany, for international students coming to study there.<\/p>\n\n\n\n

In both the GIC and Blocked Account, the money invested in it this specific sum will be used to cover the monthly expenses of the students during their study period in the country. <\/p>\n\n\n\n

Also Read: Canada Doubles GIC Amount in 2024 To $20,635: Indian Students Impacted<\/a><\/strong><\/p>\n\n\n\n

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3. Fee for Participation in Global Conferences\/Training<\/h2>\n\n\n\n

If you are planning to go to another country to attend a global conference or training program as a part of your profession you can pay all the related fees to the overseas organiser by international money transfer.<\/p>\n\n\n\n

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4. Living Expenses of Student Abroad <\/h2>\n\n\n\n

Indian students staying abroad sometimes need financial assistance for their living expenses there. For this purpose, the RBI permits the immediate relatives of the student such as parents, siblings or spouse to send money to them.<\/p>\n\n\n\n

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5. Maintenance of Close Relative Abroad<\/h2>\n\n\n\n

Apart from Indian students living abroad, the RBI also allows Indians to send money to their close relatives residing in a foreign country.<\/p>\n\n\n\n

Close relatives are defined as;<\/p>\n\n\n\n