CURRENT AFFAIRS

Detailed explanation-1: -Initially, the scheme was introduced with a limit of $25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions. In FY23 so far (till November), Indians have remitted around $17.28 billion in outward remittances under the scheme.

Detailed explanation-2: -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-3: -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.

Detailed explanation-4: -Under the Liberalised Remittance Scheme (LRS), the Bank is required to collect TCS at the rate of 5% on the aggregate remittance amount exceeding Rs. 7 lakhs during a Financial Year before Budget 2023.

Detailed explanation-5: -What are the permissible current account transactions under LRS? The following are permissible current account transactions under LRS: Private visit (other than Nepal & Bhutan) Gift or Donation including rupee gift to Non Resident Indian (NRI) / Person of Indian Origin (PIO), who is a close relative.