ARTICLE · 02 AUGUST 2024

One More Push For IFSC IBU- Liberalization In LRS

Dhaval Vussonji & Associates

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Liberalised Remittance Scheme ("LRS") is a foreign exchange policy initiative introduced by the Reserve Bank of India ("RBI")...

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What is LRS:

Liberalised Remittance Scheme ("LRS") is a foreign exchange policy initiative introduced by the Reserve Bank of India ("RBI") in 2004 vide Master Direction - Liberalised Remittance Scheme dated 04^th February 2004 (as amended from time to time) ("Master Direction-LRS"). LRS is a liberalization measure to facilitate resident individuals to remit funds abroad for permitted current or capital account transactions or combination of both.

Under LRS, resident individuals can freely remit funds up to a certain limit for purposes including but not limited to private visits, acquisition of immovable property abroad, business trip, emigration, opening of foreign currency account abroad with a bank etc.

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