Sending money back to UK?


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#16 Sep 22nd, 2010, 03:12
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#16
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Originally Posted by ukdoctor View Post Icici bank seems to do this (You probably have found this out already anyway!)
Looks like my bank (Axis) does too It's as clear as mud. I hope, if I ever need to do it, that someone at the bank would be able to talk me through it
#17 Sep 22nd, 2010, 06:32
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Thanks everyone... the situation is far from clear, eh?

I found this Citibank India account for expats which specifically offers "Hassle free" (ahem) outward remittances with reduced paperwork.

Since I can also open a Citibank account in the UK before shifting, opening one of these when I arrive in BLR might be one way to go. From what I've read, doing transfers between branches of the same global bank seems like the least likely to get tangled up in red tape.

(I also considered ICICI, but would have to travel from Scotland to nearest branch in Manchester to open an account by the look of it. btw engharsh that's my neck of the woods as well )
#18 Sep 22nd, 2010, 09:46
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Have never had a Citibank India account myself, but had many friends and acquaintances who had no end of trouble with theirs. Standard Chartered has many branches in India -- never heard any complaints about them but, again, have no personal experience with them.
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#19 Oct 8th, 2010, 17:14
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It just so happens... that we had to send some money out of India this week.

The procedure was simple, requiring just two forms to be filled in, and we are told that the money will reach the destination account in a couple of days. Our first attempt, at a small, local branch, was troublesome: they did not have the necessary forms, and weren't too happy about doing it all. We have an account at the main city office of a private bank, and went there, and they were quite happy.

I asked some general questions while we were there, but please take this only as an indication, as both my understanding and memory have holes in them!

It seems that there is no trouble if a maximum of 2 lakh rupees per year is not exceeded. That is not going to go far in paying the average London mortgage! Never mind, more is possible, but some small trouble is going to be involved:

1. A concern is to be sure that Indian tax has been paid on any remittance. Thus, they want to see three months of payslips, showing that that tax has been paid.

2. Proof of the purpose of the payment is required.

Just my understanding of what one bank employee told me. It looks like it is all possible, but may take some time to get underway, so some sort of buffer needs to be put in place for the first few months.
#20 Oct 8th, 2010, 17:48
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My connection is too slow here to go into it now but you might have a look at EBay/PayPal India to see if there is a way through that channel. Good luck.
#21 Oct 10th, 2010, 00:29
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Originally Posted by vinceorian View Post you might have a look at EBay/PayPal India to see if there is a way through that channel.
PayPal is (still) a no-go since the start of 2010, when the RBI stopped them doing cross-border currency transfers because they didn't get authorisation.

http://www.reuters.com/article/idUS16299391020100211

PayPal are making noises about trying to resolve the situation, but it could take a while.

Meanwhile, I'm lining up a range of options before I head out to Bangalore in December. I now have a Citibank UK account so I'll try to open a rupees account with them when I arrive. (I also considered ICICI but their customer service seems to be universally panned on the forums I've read.)

I will also look into Forex trading online via TorFX and HiFX who both deal in Rupees. These guys will give much better rates than PayPal anyway.

I will be doing transfers every month, so I'm keen to find a way to make this as automatic and smooth as possible... would still love to hear from anyone who's found a painless way to do outward remittances out of India back to their home country.
#22 Oct 10th, 2010, 00:35
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Have you approached your employers? The controller/CFO or their accounting firm should be knowledgeable.
#23 Oct 10th, 2010, 00:37
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hi Nick, I just spotted your reply - thanks a lot.

Quote:
Originally Posted by Nick-H View Post It seems that there is no trouble if a maximum of 2 lakh rupees per year is not exceeded.
hmm, I'm looking at sending back at least 36000 a month. :-/

Quote:
1. A concern is to be sure that Indian tax has been paid on any remittance. Thus, they want to see three months of payslips, showing that that tax has been paid.
Hmm, but don't you pay your tax at the end of the tax year in April? In which case you can't prove anything until then?

(I'm still getting my head around indian tax - I see there's some direct code thing coming in next year, that wouldn't be moving towards deduction at source would it?)

Quote:
2. Proof of the purpose of the payment is required.
I am only looking to transfer to an account of mine in the UK, so I'm hoping that account-to-account transfers held in the same name at both ends shouldn't be a problem.

Thanks again Nick!
#24 Oct 10th, 2010, 00:48
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#24
I think you should have some documents handy to substantiate stuff like mortgage payments, council tax, regular fuel bills, and maybe some bank statements showing those regular outgoings.

I have no idea about working here --- but I thought that people who earned enough to pay tax had it deducted from their pay, and paid direct, like the British PAYE scheme. Otherwise, you may have to pay advance tax, quarterly, on your estimated income for the year, so you are still paying as you go along
#25 Oct 10th, 2010, 00:48
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Originally Posted by curtdfw View Post Have you approached your employers? The controller/CFO or their accounting firm should be knowledgeable.
That's a good point actually, thanks curtdfw.

When I started this thread I was only in discussions over the job, but we've signed the contract now so I guess I could start asking them about it.
#26 Oct 23rd, 2010, 23:44
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OK so I asked HR at my future employer and they said they use Citibank for transfers, and that the limit for outward remittances is USD 200,000 a year.

As I've already got a UK Citibank account, I'm going to stick with the plan to open one in India as well and see how that goes.
#27 Oct 24th, 2010, 00:18
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Good news.

It would be helpful to do a post after you've completed one or two transactions with details on the process, timing, complications or lack thereof.
#28 Oct 24th, 2010, 01:31
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#28
USD 200,000 --- so 2 lakh dollars, not 2 lakh rupees? That does make quite a difference.

Frankly, I don't think it makes a great deal of difference what bank does the transfer. You can go for Citi, but Axis, a couple of other independent banks, and all the state banks are much more all-over-the-place. If there happens to be a branch of Citi Bank close to you or your work, then fine!
#29 Oct 24th, 2010, 02:40
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#29
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Originally Posted by curtdfw View Post It would be helpful to do a post after you've completed one or two transactions with details on the process, timing, complications or lack thereof.
Sure, will do.

I'm also discovering the vicissitudes of applying for an Employment Visa, and all the things you're expected to supply that nobody even tells you (at least in Scotland), so will post on that too.

Nick - I have the impression that doing a transfer from one branch of an international bank to another will be quicker than transfers between different banks. I will conduct a controlled experiment to determine this as soon as possible...
#30 Oct 24th, 2010, 03:49
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#30
My theory is that it won't make any difference. Do let me know how it works out!
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