Single AD Branch in Liberalised Remittance Scheme

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The Liberalised Remittance Scheme (LRS) requires resident individuals to choose a single Authorised Dealer (AD) branch for all their remittances. If you need to send funds for purposes like children's education fees, this must be done through your designated branch. Changing your AD branch or using different banks for remittances within the same year generally requires prior permission from the RBI, though this rule primarily applies to capital transactions rather than current ones like educational expenses.

H (Querist)
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27 September 2021 The provisions of the Liberalised Remittance Scheme (LRS) mention that "Resident Individual needs to designate a single branch of an AD through which all the remittances under LRS will be undertaken. NOC is required if remittances are from different banks.".
Does that mean that one can transfer funds to other country for his/her children's education purpose/fees only through one particular bank and cannot do so through any other bank/service even if the other alternative is found to be better or more convenient at a later stage?
OR one can transfer funds from any of his/her various bank accounts as long has the individual is maintaining the LRS limit ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2021 Yes, you should stick to the same bank branch for all your LRS remittances for particular year. If needed to change, you are required to get permission from RBI.

H (Querist)
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27 September 2021 Thank you Sir for your reply. However, as far as I could understand from the relevant information available on RBI Website, the restriction to carry out all LRS remittances from a single AD branch pertains to capital transactions and NOT to current transactions like student's fees/ educational expenses.
Kindly clarify the requirement of sticking to a single AD branch for current transactions of this kind.
Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2021 Yes, you are correct.

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