Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI)
The LRS is a scheme that allows Indian residents to remit money abroad up to a certain limit without the need for prior approval from the RBI. The current limit is USD 500,000 per financial year.
There are a number of purposes for which remittances can be made under the LRS, including:
- Education
- Medical treatment
- Travel
- Maintenance of close relatives abroad
- Investment in foreign securities
- Any other purpose approved by the RBI
The LRS is a convenient way for Indian residents to remit money abroad for various purposes. It is important to note that there are some restrictions on the use of the LRS, such as the requirement to submit documentation for certain purposes. For more information, please visit the RBI website.
Here are some of the key features of the LRS:
- No prior approval required from the RBI: Indian residents can remit money abroad up to the prescribed limit without the need for prior approval from the RBI.
- Multiple channels allowed: Remittances can be made under the LRS through multiple channels, including banks, money transfer operators, and foreign exchange dealers.
- Wide range of purposes allowed: Remittances can be made under the LRS for a wide range of purposes, including education, medical treatment, travel, maintenance of close relatives abroad, investment in foreign securities, and any other purpose approved by the RBI.
The LRS is a valuable tool for Indian residents who need to remit money abroad. It is a convenient and flexible way to send money to loved ones or to invest in foreign assets.