Documents required for an A2 outward remittance

Different banks and corridors may ask for slightly different sets of documents, but broadly, the following are common:

1. Form A2

An RBI-prescribed application-cum-declaration form used for outward remittances under FEMA. It serves as the core compliance document, recording the amount, currency, purpose, beneficiary details, and the remitter’s declaration.

2. KYC documents

KYC documents establish the identity and legal status of the remitter (individual or entity) in line with KYC norms.
These typically include PAN, certificate of incorporation, address proof, and a board resolution or authorisation (for companies).

3. Invoice or contract

Invoices or contracts demonstrate the underlying transaction (goods, services, IP, etc.). Banks rely on these to verify the stated purpose and determine whether tax documentation (such as Forms 15CA/15CB) is required.
Examples include vendor invoices, purchase orders, service agreements, and statements of work (SOW).

4. Import Export Code (IEC)

IEC is issued by DGFT to businesses engaged in cross-border trade. For trade-related outward remittances (imports or services), banks may request IEC to confirm that the business is authorised to undertake such transactions.

5. Bank certificate (in some cases)

A bank certificate may be a confirmation from the beneficiary’s bank of the account details, or a certificate from the remitter’s bank related to the transaction. It helps minimise routing errors and mis-credit for large or sensitive payments.

6. Tax deduction documents

Tax deduction documents are required when TDS or withholding tax may apply and to demonstrate that the remittance complies with income-tax requirements.
These may include Forms 15CA/15CB, TDS challans, Tax Residency Certificate (TRC), and Form 10F, where applicable.

7. Purpose declaration

A purpose declaration is a brief written statement explaining the nature of the payment (for example, “professional services – software development”, “marketing services”, “SaaS subscription”). It clarifies the exact purpose, enabling the bank to map the transaction to the correct RBI purpose code and ensure compliance with FEMA.

8. Additional / supplementary supporting documents

For specific categories such as overseas investments, loans, IP purchases, or education, regulators expect additional proof of the transaction’s nature.
These may include investment approvals, board resolutions, share purchase agreements, university admission letters, medical estimates, and similar documents.

Who is responsible for filling Form A2?

• The remitter (individual or business)
  Responsible for providing accurate details on the amount, currency, beneficiary, and purpose of the remittance, along with PAN and other required particulars. In most online journeys, the remitter effectively fills Form A2 in digital form, even if the underlying RBI format is not shown.

• The authorised dealer (AD) bank
  Reviews the information declared in Form A2 to determine whether the remittance is permissible under RBI and FEMA rules, and then certifies on the form that the transaction is being processed in line with those instructions.

How to fill and submit Form A2 (step-by-step)

Most banks and platforms now allow Form A2 to be completed and submitted online, often as part of the outward remittance journey itself.

1. Select the bank or platform
   The remitter logs in to the bank’s forex/outward remittance section or uses a cross-border platform that routes payments through an authorised dealer bank.

2. Choose the type of remittance
   The remitter indicates whether the transfer is personal (education, medical, travel, living expenses) or business-related (services, imports, investments, etc.).

3. Complete Form A2 details
   The remitter enters the information captured in Form A2: applicant details, beneficiary details, amount and currency, and the purpose of remittance, along with the appropriate RBI purpose code.

4. Upload supporting documents
   Depending on the purpose, the remitter may upload invoices or contracts, admission or fee letters, and, where required, tax documents such as Forms 15CA/CB.

5. Confirm declarations
   The remitter reviews and confirms the FEMA/LRS declarations presented by the bank and confirms that the remittance is within applicable limits and complies with regulations.

6. Submit online or at an authorized bank branch
   Form A2 can usually be submitted digitally within the banking portal or, where required, in physical form at an authorised dealer branch.

7. Track the remittance
   After the bank verifies the form and supporting documents, the outward remittance is processed via SWIFT or other permitted rails, and the remitter can track the status through the bank or platform.

Key fields in Form A2

AD Code:
The AD (Authorised Dealer) code is the unique identifier for the bank or branch authorised by the RBI to handle foreign exchange transactions and  is generally populated by the bank itself

GST-registered name / destination state
These fields are used to link the remittance to the correct GST registration of the remitter and to support GST-related reporting for export or import of services, where relevant.

State code:
Each state and union territory in India is assigned a two-digit GST code. Banks often use this internally when mapping a GSTIN to a specific state.

Destination state code:
Based on the GST registration details provided, the bank maps the remitter to the appropriate state code in its system. In online forms, this is usually selected from a dropdown or filled automatically once the GSTIN is entered.

Purpose code in Form A2

• Determines permissibility
  Certain categories of remittances are permitted freely, while others may require specific approvals or be subject to closer scrutiny. The purpose code is what the bank and the regulator rely on to classify the transaction.

• Influences tax and documentation requirements
  Depending on the purpose code, the remittance may trigger additional requirements such as Form 15CA/15CB, TDS, or other supporting documents.

• Affects the level of review by the bank
  An inaccurate or overly generic purpose code can lead to follow-up queries, delays, or even the rejection of the remittance, especially for higher-value or recurring transactions.

Debit instructions in Form A2

Debit instructions in form A2 are often presented as three options:

• OUR – all charges are borne by the remitter

• BEN – all charges are borne by the beneficiary

• SHA – charges are shared between the remitter and the beneficiary

The choice between OUR, BEN, and SHA directly affects the amount the beneficiary ultimately receives and the total amount the remitter pays, making this field particularly important for high-value invoices and long-term vendor relationships.

Forex hedging in Form A2

• This section is used when the remitter has already booked a forward contract or FX deal with the bank at a pre-agreed exchange rate. The remittance can then be linked to that specific contract.

• Linking a remittance to a booked forex contract can:

- Protect the remitter from exchange rate volatility between the time of booking and the actual payment.

- Lock in a known rate for repeated or long-term foreign currency obligations.

- Provide greater predictability to cash flows, especially for businesses with recurring USD/EUR/GBP expenses.

FEMA declaration in Form A2

In this declaration, the remitter confirms that:

• The remittance is for a permitted purpose under FEMA and RBI guidelines.

• The transaction does not breach any applicable limits (such as LRS caps or sector-specific caps)

• The funds used for the remittance are from legitimate and permitted sources.

• All details and documents provided are true, correct, and complete to the best of their knowledge.

Once the form, declarations, and documents are complete,either digitally or in physical form, the authorised dealer bank can proceed with the remittance in line with RBI rules.

Form A2 vs Form A1 vs Form 15CA/CB – what’s the difference?

This is where many remitters get confused, so let's keep it simple.

Form A2 vs Form A1

• Form A1 – used mainly for import payments (goods coming into India).

• Form A2 – used for other outward remittances, such as services, travel, education, investments, professional fees, etc.

Form A2 vs Form 15CA/CB

These are different regulators, different objectives:

• Form A2

• Governed by RBI / FEMA

• Submitted to the authorised dealer bank

• Declares why foreign exchange is being drawn and for what purpose.

• Form 15CA/CB

• Governed by the Income Tax Department

• Filed on the income-tax portal (15CA by the remitter, 15CB by a CA where required)

• Deals with taxability, TDS, and reporting on outward remittances.

In business remittances, Form A2 is used for FEMA / RBI compliance, while Forms 15CA/15CB are used for income-tax compliance.

Conclusion

Form A2 may look like just another RBI form, but it is essentially a structured declaration of who is sending money, for what purpose, and for how much.

For freelancers and founders, understanding Form A2 helps them:

• Avoid last-minute remittance rejections.

• Stay on the right side of FEMA and LRS rules.

• Keep their CA, bank, and books aligned.

For freelancers and businesses that rely on international clients, trying Infinity for their next payment can help them experience faster settlement, clearer pricing, and keep more of what their clients actually pay them.

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Frequently Asked Questions

Is Form A2 mandatory for international payments?

Yes. Form A2 is mandatory for most outward remittances from India and must be submitted to an authorised dealer (AD) bank for sending money abroad under FEMA.

Who should fill Form A2?

Form A2 is filled by the remitter (individual or business in India) sending money abroad and then certified by the authorised dealer bank processing the remittance.

What is the declaration for outward remittance in Form A2?

The outward remittance declaration is the part of Form A2 where the remitter confirms the purpose, amount, source of funds, and that the transfer complies with FEMA and RBI rules.

Does every freelancer or founder need to worry about Form A2?

No. Form A2 is only required when sending money abroad (outward remittance); it is not required for receiving international payments into India.

Can Form A2 be submitted online?

Yes. Most banks now support online Form A2 submissions as part of their outward remittance journeys.

Do I still need Form 15CA/CB if I submit Form A2?

Yes. Form A2 covers FEMA / forex compliance, while Forms 15CA and 15CB relate to income-tax and TDS. Many business remittances require both.