Limits on Outward Remittances under LRS

The Reserve Bank of India, vide its circular dated June 3, 2014 has enhanced the permissible limit for foreign outward remittance under Liberalised Remittances Scheme (LRS). Resident Indians are now allowed to send funds up to USD 125,000 in a financial year (April-March) under the scheme.
The funds can be transferred for any permissible current or capital account transaction(s) as approved under the Foreign Exchange Management Act, 1999 and the rules/ regulations there under (FEMA) from time to time.

 

Capital Account Transactions include:

Opening and maintaining accounts in foreign currency with foreign banks;

 

Investment in foreign securities including Shares, Mutual Funds, Debt instruments, ADRs and GDRs of foreign companies;

 

Investment in venture funds/promissory notes etc.;

 

Acquisition of immovable property outside India;

 

Gift/Loan.

Current Account Transactions include:

 

Maintenance of close relatives abroad;

 

Medical treatment abroad;

 

Education;

 

Immigration;

 

Employment abroad etc.

Eligibility:

 

Resident individuals having a valid Permanent Account Number (PAN) and account maintained with ICICI Bank over a the period of at least one year.

 

To the extent of limit of USD125,000 per financial year (April-March) which has not been utilised.

 

Resident individuals with account less than one year– Copy of bank statement of other banks or copy of latest Income tax assessment order should be

 

provided additionally.

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