PayFX Global is committed to providing secure, transparent, and compliant international remittance services. All international remittances processed through PayFX Global are conducted in accordance with applicable regulations issued by the Reserve Bank of India (RBI) and governed under the Foreign Exchange Management Act (FEMA).

These regulations help ensure that overseas transactions are conducted legally, securely, and responsibly while protecting the interests of customers and maintaining the integrity of India's financial system.

Whether you are paying tuition fees abroad, funding a GIC account, supporting family members overseas, making medical payments, or investing internationally, compliance plays an important role in every transaction.

What is RBI?

The Reserve Bank of India (RBI) is India's central banking institution and regulator of foreign exchange transactions. The RBI establishes guidelines governing:

• International remittances
• Foreign exchange transactions
• Overseas investments
• Student remittances
• Travel-related payments
• Family maintenance transfers
• Foreign currency transactions

Authorized financial institutions and banking partners process international remittances in accordance with RBI regulations.

What is FEMA?

The Foreign Exchange Management Act (FEMA), 1999 is the primary legislation governing foreign exchange transactions in India.

FEMA regulates:

• Outward remittances
• Inward remittances
• Overseas investments
• Foreign asset acquisition
• International payments
• Foreign currency transactions

The objective of FEMA is to facilitate external trade and payments while maintaining orderly management of foreign exchange resources.

What is the Liberalised Remittance Scheme (LRS)?

The Liberalised Remittance Scheme (LRS) allows resident individuals in India to remit funds abroad for permitted purposes.

LRS enables individuals to send money internationally for:

Education

• Tuition Fees
• Living Expenses
• Student Accommodation
• Educational Services

Family Maintenance

• Financial support to relatives living abroad

Medical Treatment

• Overseas medical treatment expenses

Travel

• International travel expenses

Immigration

• Visa and immigration-related payments

Investments

• Overseas investments and eligible financial assets

Property Purchase

• Purchase of permitted overseas property

Gifts

• Gifts to eligible overseas recipients

Who Can Use LRS?

LRS is generally available to resident individuals in India subject to prevailing RBI regulations. Eligibility and documentation requirements may vary based on the remittance purpose and applicable regulations.

Purpose Codes Explained

Every international remittance requires a declared purpose. Purpose codes help regulators identify the nature of the transaction.

Common categories include:

Education Payments

• Tuition fees
• Student living expenses
• Educational services

Family Maintenance

Used when supporting family members living abroad.

Medical Treatment

Used for overseas healthcare-related expenses.

Travel

Used for international travel expenses.

Investments

Used for eligible overseas investments.

Gifts

Used for personal gifting purposes.

Selecting the correct purpose helps ensure faster compliance processing and regulatory reporting.

Documents Required Under RBI & FEMA Guidelines

Depending on the transaction purpose, customers may be required to submit supporting documents.

Education Payments

• Admission Letter
• Tuition Fee Invoice
• Student Passport
• Visa Documents

Living Expenses

• Student Visa
• Admission Confirmation

Family Maintenance

• Beneficiary Details
• Relationship Information (where applicable)

Medical Treatment

• Hospital Invoice
• Medical Documentation

Investments

• Supporting investment-related documents

Additional documents may be requested based on compliance requirements.