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ARTICLE · 25 JULY 2024

Liberalisation Of Investments In IFSC

Khaitan & Co.
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In February 2021, the Reserve Bank of India (RBI) had decided to permit resident individuals to make investments in the International Financial Services Centers (IFSC)...

IndiaFinance and Banking
Moin Ladha
Moin Ladha
Charu Singh
Charu Singh
Tanish Prabhakar
Tanish Prabhakar
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Introduction

In February 2021, the Reserve Bank of India (RBI) had decided to permit resident individuals to make investments in the International Financial Services Centers (IFSC) under the Liberalized Remittance Scheme (LRS Scheme) with a view to strengthen the financial markets in IFSC and to provide Indian resident individuals with the opportunity to expand and diversify their portfolios.

The RBI's LRS Scheme permits a resident individual to freely remit funds outside India up to USD 2,50,000 per Financial Year (April-March) for any permitted current or capital account transaction or a combination of both. The LRS Scheme is only available for resident individuals and not for corporates, partnership firms, HUF, trusts, etc.

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