BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -The Liberalised Remittance Scheme (LRS) allows parents to transfer money to their children studying abroad. Any Indian resident can participate in it and transfer up to $250, 000 abroad in a financial year.

Detailed explanation-3: -Remittance facility under the scheme is prohibited for the following transactions: 1. Capital Account Transactions – Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non cooperative countries or territories” from time to time.

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.