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There is no doubt that a lot of Indians love to settle abroad. Well, the statistics suggest the same!
India has the largest diaspora by a large margin than other countries. Every year lakhs of individuals migrate permanently and settle abroad.
While most people go abroad for career and work-related purposes, some go for higher education. And, post-completion of their education, most of them settle in a foreign nation owing to good opportunities and lifestyle.
However, all this is not as easy as it seems! A lot of documentation, verification and other formalities are required. Immigration consultants help individuals in dealing with all this.
From VISA processing to immigration, consultants also process their relocation and funding requirements. By funding, we mean the money that the immigrants want to transfer to a foreign account from an Indian bank account. Otherwise, the money that a sender from India sends to immigrants to extend financial aid.
Now referring to cross-border payments becomes a challenge for immigration/education consultants. Undoubtedly, LRS (Liberalised Remittance Scheme) has eased out the process of outward remittances where the RBI allows a remittance of up to USD 2,50,000 in a fiscal year.
Simultaneously, the RBI has also mandated that the remittances can occur via authorised dealers (AD1 banks and AD II agents) only. This traditional approach of LRS via authorised dealers (ADs) has some constraints that restrict seamless settlements of remittances.
But Cashfree Payments’s LRS Solution for immigration consultants can help in hassle-free remittances and settlements.
Let’s understand in detail!
Limitations of Traditional LRS Approach via ADs
For outward remittances under LRS, individuals need to submit their KYC documents. Also, a complete KYC requires KYC plus the A2 form signed by the remitter.
But, immigration consultants processing the outward remittance of Indian residents via ADs have to ask them to visit the bank branch physically. There is NO digital process for the same as they cannot integrate with the AD bank’s payment system.
Therefore, immigration consultancies CAN NOT facilitate online payments on their app or website.
Apart from this, the sender must provide residential proof, identity proof, source of income and bank statements for the last 12 months.
Now, some crucial problems are associated with this traditional approach to LRS remittances. For LRS capital, the senders need to be AD bank account holders, preferably for a year.
Payments via UPI or net banking are NOT easy either when transacting with ADs who wire transfer the funds. It cannot update the senders with the real-time status of remittances.
Foreign-Exchange Rates (FX Rates), as well as TCS (Tax Collected at Source), are calculated manually. This makes it prone to errors.
In case they do not, they need to go to an AD branch to open a new account and wait for a few hours before initiating a transaction. Sometimes, the wait is as long as 24 hours or even more.
The remittance settlement time for existing account holders is either the same day or the next (T+0 or T+1). On the other hand, for new account holders, settlements may take a day or two (T+1 or T+2).
So, what is the solution to this problem?
It is the LRS solution by Cashfree Payments if you want to scale up your immigration business.
How can Immigration Consultants use the LRS Solution of Cashfree Payments?
The Cashfree Payemnts’s LRS solution for immigration consultants can help them easily collect LRS payments and enable cross-border transactions. Here’s how –
1. Completely Digital
The flow of Cashfree Payments’s outward remittance is purely digital. Hence, immigration consultants integrating with us can save the efforts of remitters going physically to the AD branch.
2. Payments via All Banks
Cashfree Payments’s outward remittance solution enables payments through all banks. The sender needs not to hold an account with an AD bank. Therefore, immigration consultancies using outward remittance by Cashfree Payments can enable payments of even non-AD bank account remitters.
3. Popular Payment Methods
Unlike AD banks that do a wire transfer, immigration consultancy services integrating with us can enable payments through popular Indian modes. Outward remittance solution by Cashfree Payments processes industry-first UPI payments and net banking along with NEFT and RTGS. We have 38+ bank partnerships for net-banking TPV (third-party verification) flow to verify the remitter’s bank account details.
4. One-time Set-up
Cashfree Payments supports a one-time setup for repeat payments via eNach and UPI Autopay for outward remittances.
5. Real-time Status
With Cashfree’s outward remittances, immigration consultancy businesses can provide real-time status of LRS remittances. We provide instant confirmation of payment processing.
6. Calculating Currency Conversion
We do quick calculations avoiding the chances of manual errors using the Smart FX calculator. Cashfree’s outward remittance solution fulfils complete payment after the currency conversion.
7. Real-time Status
At the same time, Cashfree’s LRS solution also provides real-time calculation of TCS (Tax Collected at Source) before remittance.
Read More about TCS on LRS outward remittances – The Budget 2023 Update
8. Integrate with Cashfree Payments
Immigration services cannot integrate with AD banks directly but they can integrate with us to use the LRS solution by Cashfree. Start with Cashfree’s No-code solution or integrate with our API.
9. Available 24×7
AD banks have fixed timings, but the outward remittance solution by Cashfree can process payments 24×7. So, that’s also a reason we are a better alternative.
Therefore, why not avail these benefits for your immigration business?
As mentioned above, get the native integration of Cashfree API for your website or app. Likewise, you can also collect payments by plugging in no-code solutions. Control source of funds and enable seamless cash flow across borders with us.
PRO TIP: Read what is Foreign Inward Remittance Certificate
Parting Thoughts
Although this blog highlights the benefits of outward remittance by Cashfree for immigration services, it is not restricted to that. We have tailor-made solutions for outward remittances for all kinds of businesses.
Ranging from travel and hospitality to brokerage and investment firms, even education consultants, all can use our cross-border payment solution.
So, are you looking forward to facilitating convenient outward remittance for your business?
