How does a OCI, USC, RESIDENT in India transfer money to US?

[Rajram]

I am a USC/OCI, resident and working in India, I have a standard resident rupee account (not NRE/NRO). I have limited funds in the US. I however have lot of services like mail forwarding, VoIP, credit cards etc for which I need to make payments close to $200/month. I want to pay these from my rupee account. I know there is a outward remittence service from ICICI et all, but the RBI has restricted outward remittences solely for these purposes:

Employment, Medical care of a relative and Travel.

There is no category such as general remittences or remitting to self. Very bad since sending money to India looks like a one way ticket. Any ideas (other than sending money to a relative and then asking them to credit to my account etc) will be appreciated.

Moderator, there are no answers to this question in the forum and this thread is specific to this situation of USC/OCI being resident in India and holding a rupee account. I hope you let this continue.

[yessireebob]

You have not left any of your US Bank accounts active?
Just for this purpose I have an account that can do bill pays etc, and can be linked to Paypal..
Worst case you can write a check on this bank and mail it with someone going to the US who can then drop it off to make payments

Hope that helps.

I am not aware of Remittances from India for this purpose

[Rajram]

You have not left any of your US Bank accounts active?
Just for this purpose I have an account that can do bill pays etc, and can be linked to Paypal..
Worst case you can write a check on this bank and mail it with someone going to the US who can then drop it off to make payments

Hope that helps.

I am not aware of Remittances from India for this purpose[/quote]
I have active accounts in US, but I want to keep an eye on the balances. I dont want the balances to slowly drop and drainout. I may also want to deposit whatever surplus income I have in India in my US bank account. There are outward remittence services from ICICI and Time of India. Foreign nationals can send their entire incomes minus tax deductions to US but the catch is they can only be transferred for the purpose of maintaining a family member in the US or for medical expenses of a family member. My entire family is here, however I have monthly expenses of about $200 which I want to pay off of my Indian salary. There is no provision for sending money from India for maintaining utilities etc while a foreign national along with his/her family resides in India.
Is the send option you mentioned i.e. writing a check legal or is it similar to Hawala?

[Bobus]

I know there is a outward remittence service from ICICI et all, but the RBI has restricted outward remittences solely for these purposes: Employment, Medical care of a relative and Travel. [/quote]

RBI allows more than what you have asserted above. Please feel free to go thru FAQ on liberalized remittance scheme (LRS)

http://www.rbi.org.in/scripts/FAQView.aspx?Id=66

that talks about a $200K limit per year per India resident for investments, gifts and donations outside India.

You can use the above scheme (called LRS) to invest say in a money market account in the US and then use that money to pay for expenses like the ones you have described, US taxes if any, ...

[Rajram]

RBI allows more than what you have asserted above. Please feel free to go thru FAQ on liberalized remittance scheme (LRS)

http://www.rbi.org.in/scripts/FAQView.aspx?Id=66

that talks about a $200K limit per year per India resident for investments, gifts and donations outside India.

You can use the above scheme (called LRS) to invest say in a money market account in the US and then use that money to pay for expenses like the ones you have described, US taxes if any, ...[/quote]
Thanks Bobus. That sounds like a feasible plan. I can send surplus cash and invest on say 5 month CDs or other short term investments in the capital/money markets and then pull out the cash and send it straight to my bank account.

[Rajram]

RBI allows more than what you have asserted above. Please feel free to go thru FAQ on liberalized remittance scheme (LRS)

http://www.rbi.org.in/scripts/FAQView.aspx?Id=66

that talks about a $200K limit per year per India resident for investments, gifts and donations outside India.

You can use the above scheme (called LRS) to invest say in a money market account in the US and then use that money to pay for expenses like the ones you have described, US taxes if any, ...[/quote]
Actually this still may not work as RBI defines these rules only for "Indians" as opposed to Foreign Nationals with OCI etc.

[submarine66]

Actually this still may not work as RBI defines these rules only for "Indians" as opposed to Foreign Nationals with OCI etc.

If you read the link Bob posted it talks only about "resident" which needs to be interpreted as "resident of India". A Foreign National with OCI can definitely qualify as a "resident of India"

[Bobus]

Submarine: Thanks.

[Rajram]

If you read the link Bob posted it talks only about "resident" which needs to be interpreted as "resident of India". A Foreign National with OCI can definitely qualify as a "resident of India"[/quote]
If you read the RBI forms, they have clearly defined codes for each type of transaction, All those codes refer to "Indian", e.g. "Indian investment abroad". There is no reference to foreign nationals or a generic resident.

[Bobus]

If you read the RBI forms, they have clearly defined codes for each type of transaction, All those codes refer to "Indian", e.g. "Indian investment abroad". There is no reference to foreign nationals or a generic resident.[/quote]

Which form are you refering to?

LRS is for residents - not just for Indian citizen residents.