Liberalised Remittance Scheme is a scheme introduced by RBI as a liberalization measure to facilitate Resident Individuals (RI) to freely remit funds up to USD 2, 50,000/- outside India in a financial year (April to March) for any permissible current or capital account transaction or a combination of both. The remittances can be made in any freely convertible foreign currency. The following are the permissible capital account transactions that an individual is permitted to remit under LRS;
From February 2021 onwards residents are also allowed to make remittances to IFSCs under LRS. The liberalized remittance scheme (LRS) does not envisage the extension of the fund and non-fund-based facilities by the AD banks to their resident individual customers to facilitate remittances for capital account transactions under LRS. However, AD banks may extend fund and non-fund-based facilities to resident individuals to facilitate current account remittances under the Scheme. The individual will have to designate a branch of an AD through which all the capital account remittances under the Scheme will be made. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance. This restriction is not applicable to current account transactions under LRS. Further, Permanent Account Number (PAN) is mandatory for all transactions under LRS.
The remittance facility under the Scheme is not available for the following;
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