RBI has made changes for liberalization and rationalization of
LRS for resident individuals and existing guidelines issued under
the Foreign Exchange Management (Current Account Transactions)
Rules, 2000. The changes are as follows:-
Authorized dealer Banks may allow
remittances by a resident individual up to USD 250,000 per
financial year for any permitted current or capital account
transaction or a combination of both. If an individual has already
remitted any amount under the LRS, then the applicable limit for
such an individual would be reduced from the present limit of USD
250,000 for the financial year by the amount already remitted.
To facilitate ease of transactions,
all the facilities (including private/ business visits) for release
of exchange/ remittances for current account transactions available
to resident individuals under Para 1 of Schedule III to the Foreign
Exchange Management (Current Account Transactions) Rules, 2000, as
amended from time to time, shall now be subsumed under the overall
limit of USD 250,000.
However for the purpose of
emigration, expenses in connection with medical treatment abroad
and studies abroad, individuals may avail of exchange facility for
any amount in excess of the overall limit prescribed under the LRS,
if it is so required by a country of emigration, medical institute
offering treatment or the university respectively.
Gift in Indian Rupees by resident
individuals to NRI relatives as defined in the Companies Act, 2013
shall also be subsumed under the LRS limit.
The scheme cannot be made use for
making remittances for any prohibited or illegal activities such as
margin trading, lottery, etc.
Persons other than individuals can
make remittances for:-
Donations for educational
Commissions to agents abroad for sale
of residential flats/ commercial plots in India
Remittances for consultancy services
Remittances for reimbursement of
The content of this article is intended to provide a general
guide to the subject matter. Specialist professional advice should
be sought about your specific circumstances. The views expressed in
this article are solely of the authors of this article.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The committee set up to draft a Code on Resolution of Financial Firms, by the Ministry of Finance, Government of India, on September 28, 2016, released a draft bill – The Financial Resolution and Deposit Insurance Bill, 2016...
In a race to adopt technology innovations, Banks have increased their exposure to cyber incidents/ attacks thereby underlining the urgent need to put in place a robust cyber security and resilience framework.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).