BANKING AFFAIRS

Detailed explanation-1: -Liberalized remittance scheme (LRS) was introduced in India in 2004 by the Reserve Bank of India (RBI). It is a scheme that enables Indian residents to remit funds abroad for certain specified purposes.

Detailed explanation-2: -The Scheme was introduced on February 4, 2004, with a limit of USD 25, 000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions. In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian.

Detailed explanation-3: -LRS allows Indian residents to freely remit up to USD $250, 000 per financial year for current or capital account transactions or a combination of both. Any remittance exceeding this limit requires prior permission from the RBI.

Detailed explanation-4: -For such remittances Liberalised Remittance Scheme (LRS) has been framed which is available if you are an Indian resident individual. In that case you may make remittances up to USD 250, 000 per financial year (April-March) for any permitted capital/ current account transactions or a combination of both.

Detailed explanation-5: -Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2, 50, 000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.