Affluence Advisory
Quick Summary
The Reserve Bank of India (RBI) has vide its Circular dated July 10, 2024 allowed remittances for all permissible purposes under the Liberalized Remittance Scheme to the International Financial Services Centre. Before delving into what remittances are allowed, let us understand a few important conce
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FAQ :
The LRS allows resident individuals to freely remit up to USD 2,50,000 per financial year for any permitted current or capital account transactions, or a combination of both.
The RBI now allows remittances for all permissible purposes under LRS to International Financial Services Centres (IFSCs), expanding beyond the previous restrictions.
Previously, LRS remittances to IFSCs were limited to investments in securities (excluding those from Indian residents outside IFSCs) and payment of education fees to foreign universities/institutions within IFSCs.
Resident individuals can now avail financial services and products within IFSCs, and conduct other foreign current or capital account transactions through a Foreign Currency Account (FCA) held in an IFSC.
The Liberalised Remittance Scheme is available to resident individuals. It is not available to corporates, partnership firms, HUFs, or Trusts.
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