Latest On – Liberalised Remittance Scheme Of RBI

Remittance of foreign exchange by individual residents is governed by the Foreign Exchange Management (Current Account Transactions) Rules, 2000 ("Current Account Rules") and the Liberalized Remittance Scheme of the RBI ("LRS Scheme") which is consolidated in the Master Directions – Liberalized Remittance Scheme (LRS) ("MD – LRS Scheme").

Under the LRS Scheme, resident individuals are permitted to remit up to USD 2,50,000 per financial year ("LRS Limit") for any permitted current or capital account transaction (subject to certain conditions). Any additional remittance in excess of the LRS Limit requires prior approval of the RBI. The LRS Limit is not applicable to payments made out of funds held in the Resident Foreign Currency account of the remitter. The restriction on remittance for individuals are linked to "drawal" of foreign exchange which essentially means drawal of foreign exchange from an authorized person and includes opening of letter of credit, use of