About Liberalised Remittance Scheme:
- LRS is a scheme administered under the FEMA, 1999 framework and RBI directions.
- It was introduced on February 4, 2004.
- Remittance Limit: Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD $250,000 per financial year (April–March).
- This can be for any permissible current or capital account transaction, or a combination of both.
- Eligibility: Only individual Indian residents, including minors, are permitted to remit funds under LRS.
- Frequency of Remittances: There is no restriction on the frequency or number of transactions during a financial year.
- Types of transactions permitted:
- Opening of a foreign currency account abroad with a bank;
- Acquisition of immovable property abroad, overseas direct investment (ODI), and overseas portfolio investment (OPI);
- Extending loans, including loans in Indian Rupees to non-resident Indians (NRIs) who are relatives as defined in the Companies Act, 2013;
- Private visits abroad (excluding Nepal and Bhutan);
- Maintenance of relatives abroad; Medical treatment abroad; Pursuing studies abroad;
- Types of transactions not permitted:
- Remittance for purposes specifically prohibited, such as buying lottery tickets or restricted items.
- Remittance for buying Foreign Currency Convertible Bonds (FCCBs) issued by Indian companies in the overseas secondary market.
- Sending money for trading in foreign exchange abroad.
- Sending money to individuals and entities identified as posing a significant risk of terrorism.
- Sending money to countries identified as “non-cooperative countries and territories” by the Financial Action Task Force (FATF).
