Form A2 is the application and declaration you give your bank each time you send money abroad under the Liberalised Remittance Scheme (LRS). It records who is sending the money, how much, to whom and for what purpose, and it carries your declaration that the remittance stays within your $250,000 annual limit.
Most banks now let you submit it online, with no cap on the amount. Below is what each part of the form asks for, how the LRS declaration works and the mistakes that hold up a transfer.
Table of contents
- What is Form A2 and when do you need it?
- What does Form A2 ask for?
- How do you submit Form A2?
- What are the common mistakes on Form A2?
What is Form A2 and when do you need it?
Form A2 is the RBI's application form for buying foreign exchange or sending a remittance abroad. Under the RBI Master Direction on LRS, a resident individual making an LRS remittance must give the bank Form A2, along with their PAN.
You need it for every LRS remittance: funding a brokerage account, paying tuition, sending money to family, buying property or loading money for travel. The bank uses it to report the transfer to the RBI under the right purpose code and to check that it is allowed under FEMA.
The same form carries your LRS declaration. In it, you confirm that your total remittances in the financial year are within the $250,000 limit, that the money is yours and that it won't be used for a prohibited purpose.
What does Form A2 ask for?
Banks print Form A2 in their own layout, often combined with their remittance application, but the format the RBI set in its 2016 circular has the same parts:
| Part of the form | What you fill in |
|---|---|
| Applicant details | Your name, address and PAN |
| Account to debit | The bank account the money comes from |
| Remittance details | Currency, amount and how it is sent, usually a direct transfer to the beneficiary's bank account |
| Beneficiary details | The recipient's name, bank, address and account number (and SWIFT or IBAN) |
| Purpose | Whether it is an LRS remittance, the purpose code and a short description |
| LRS declaration | Your statement on the limit, the source of funds and the purpose, plus a list of your earlier LRS remittances this financial year |
| Bank certificate | Filled in and signed by the bank, not by you |
The declaration is the part to read before you sign. You confirm that the total foreign exchange you have bought or remitted from all sources in India this financial year, including this remittance, is within the LRS limit. You also confirm that the funds belong to you and won't be used for prohibited purposes.
Note: The list of earlier remittances covers every bank and forex dealer you used this year, not just this bank. Your bank relies on it to keep you within the limit.
How do you submit Form A2?
You can submit it at your bank's branch or online, through net banking or a platform that works with the bank.
The RBI first allowed online Form A2 in 2016, with a cap of $25,000 for individuals. Its circular of 3 July 2024 removed that cap, so there is now no limit on the amount you can send using an online Form A2. The same circular made Form A2 compulsory for every remittance, where banks had been able to skip it below $25,000.
For remittances that need supporting papers, such as a university's fee schedule or a property sale agreement, you upload them with the online form or hand them in at the branch.
Note: For capital account remittances such as investments and property, the Master Direction expects you to have held your account with the bank for at least a year. If you are a new customer, the bank asks for last year's bank statement, or your latest income-tax return or assessment order, to check where the money came from.
What are the common mistakes on Form A2?
Most delays come from a handful of errors:
- Wrong purpose code: tuition coded as maintenance changes your TCS rate, and a property payment coded as an investment puts the wrong purpose on the RBI's record of the transfer. Check the code against the purpose code list.
- Incomplete earlier remittances: leaving out transfers made through another bank or a forex card this year makes your declaration wrong and can take you past the limit without the bank knowing.
- Beneficiary details that don't match: a name, account number or SWIFT code that differs from the recipient's bank records can get the transfer returned.
- Missing documents: education, medical and property remittances need their supporting papers. Without them, the bank may refuse the transfer or code it under a higher-TCS purpose.
- Someone else's money: you declare that the funds are yours. Money you are sending on a relative's behalf should go out from their own account, under their own PAN and limit.
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