Form A2 is required to remit funds abroad. It is an authorisation issued by the Reserve Bank of India that lets you transfer money in different scenarios. These include education, medical treatment, family support, etc. Form A2 in different scenarios details information about the remitter (who sends money) and beneficiary (who receives the money). Other than that, it must clearly state the purpose of remittance and the currency and amount of foreign exchange. Check all details related to form A2 in different scenarios and purpose codes.
Table of contents
Form A2 for Education Remittances
One of the scenarios of using Form A2 is for making education remittances. It is used to remit funds for tuition fees, accommodation, and other educational expenses while studying abroad. The form should specify the amount being remitted, the currency, and the country. These may also include sending payments to a GIC student account in Canada or a German Blocked account for international students.
You may be required to provide supporting documents which may include fee structure from the educational institution. The purpose code for educational remittance is S0305. It includes travel for education, including fees, hostel expenses etc.
Also Read: Check here some of the most important terms related to international money transfer.
Form A2 for Medical Treatment Remittance
Form A2 for medical remittance outside India is for individuals who want to transfer funds for healthcare purposes. It should include medical certificates or letters from healthcare providers, detailing the necessity of treatment abroad. The form should clearly state the medical purpose and the total amount required. The purpose code for medical treatment is S0304.
Towards the end of the Form A2, the applicant must declare that the funds will be used solely for medical purposes and not for any prohibited activities. This ensures adherence to regulatory standards. In the same section, you must disclose all remittance transactions conducted during the current financial year to ensure that the remittance is under the limits of international money transfers as per RBI guidelines.
Form A2 for Travel
Form A2 in different scenarios also include travel purposes. You’ll be required to fill out Form A2 for various types of outward remittances that include remitting funds for travel expenses such as flight tickets, accommodation, and other related costs. You must specify the purpose of the remittance clearly on the form. Supporting documents may include travel itineraries, booking confirmations, or invoices from travel agencies.
Purpose codes for Form A2 for travel purposes are listed below-
- Business travel- S0301
- Travel for pilgrimage- S0303
- Other travel (including holiday trips and payments for settling international credit card transactions)- S0306
Form A2 for Capital Account Transactions
Form A2 is also necessary for capital account transactions. These involve investments in foreign securities and properties. You must provide supporting documentation such as contracts or agreements related to investments abroad when remitting funds for such purposes. Additional documentation may be required to demonstrate compliance with regulatory limits on capital account transactions.
The form should detail the amount being remitted and specify the currency. Make sure to provide the appropriate purpose code for outward remittances in Form A2 for capital account transactions-
| Purpose | Code |
| Indian Investment abroad in equity capital (shares) | S0001 |
| Indian Investment Abroad in Debt Securities | S0002 |
| Indian Investment abroad in branches | S0003 |
| Indian Investment abroad in subsidiaries and associates | S0004 |
| Indian investment abroad in real estate | S0005 |
| Repatriation of Foreign Direct Investment in India in equity shares | S0006 |
| Repatriation of Foreign Direct Investment in India in Debt securities | S0007 |
| Repatriation of Foreign Direct Investment in India in real estate | S0008 |
| Repatriation of Foreign Portfolio Investment in India in equity shares | S0009 |
| Repatriation of Foreign Portfolio Investments in India in debt securities | S0010 |
| Loans extended to Non-Residents | S0011 |
| Repayment of long and medium-term loans with original maturity above one year received from NonResidents | S0012 |
| Repayment of Short-term loans with original maturity up to one year received from Non-Residents | S0013 |
| Repatriation of Non-Residents Deposits (FCNRB / NRERA etc.) | S0014 |
| Repayment of loans & overdrafts taken by ADs on their own account. | S0015 |
| Sale of a foreign currency against another foreign currency | S0016 |
| Purchase of intangible assets like patents, copyrights, trademarks etc. | S0017 |
| Other capital payments not included elsewhere | S0018 |
Also Read: Check out this blog to make the cheapest international money transfers abroad.
Form A2 for Income Transfer
One of the other scenarios in the list of Form A2 in different scenarios is remittances for income transfers. It includes sending income to family members living abroad for support or maintenance. The remitter must indicate their relationship with the beneficiary and the purpose of the transfer (e.g., family support). Supporting documents may include proof of relationship or financial statements indicating the need for support.
These transfers also include remittances made for other purposes like donations, gifts, and compensation of employees. Once you have filled and submitted the form to AD banks for Form A2 remittances, you can easily check the remittance status online in case of any delays. Check out the purpose code for the mentioned scenarios-
| Purpose | Code |
| Remittance for family maintenance and savings | S1301 |
| Remittance towards personal gifts and donations | S1302 |
| Remittance towards donations to religious and charitable institutions abroad | S1303 |
| Remittance towards grants and donations to other governments and charitable institutions established by the governments | S1304 |
| Compensation of employees | S1401 |
| Remittance towards interest on Non-Resident deposits (FCNR(B)/ NR(E)RA, etc.) | S1402 |
| Remittance towards interest on loans from Non-Residents (ST/MT/LT loans) | S1403 |
| Remittance of interest on debt securities – debentures/ bonds/ FRNs etc. | S1404 |
This was all about the uses of Form A2 in different scenarios. To learn more about forex, education loans, the best bank accounts for students, and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs
Form A2 is used for remitting money abroad, ensuring compliance with Indian regulations. It acts as an application and declaration form that accounts for the amount and purpose of remittance.
Yes, Form A2 is mandatory for all outward remittances under the Foreign Exchange Management Act (FEMA). It must be submitted to an authorized dealer or bank for processing.
You can obtain Form A2 from any authorized dealer or bank that handles foreign exchange transactions. Many banks also provide the form online for convenience.
Form A1 is used for personal remittances like gifts and donations, while Form A2 is for business-related transactions and other specific purposes.
Under the Liberalized Remittance Scheme (LRS), individuals can remit up to USD 250,000 per financial year using Form A2. This limit applies to various permissible transactions.
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