In the news: Remittance Scheme Liberalization (LRS)

Under the Liberalised Remittance Scheme, the Reserve Bank of India (RBI) has been requested to monitor card spending. (LRS).

Remittance Scheme Liberalization (LRS)

  • The Reserve Bank of India (RBI) offers resident people the ability to remit funds overseas for permitted current or capital account transactions, or a combination of the two.
  • The plan was launched in 2004 and has been reviewed and revised on a regular basis by the RBI.
  • Residents can remit up to a certain amount in a fiscal year for permissible transactions such as schooling, travel, medical treatment, gifts, and investments in equity and debt securities, among others, under the plan.
  • The present limit for LRS is USD 250,000 per fiscal year.

Qualification for LRS

  • Non-residents, NRIs, persons of Indian origin (PIOs), foreign citizens with PIO status, and foreign nationals of Indian descent are all eligible for LRS.
  • Corporations, partnership companies, Hindu Undivided Family (HUF), Trusts, and other similar entities are NOT eligible for the Scheme.
  • LRS benefits
  • LRS is a simple method for transferring money between two nations that anyone can use.
  • It is particularly beneficial to businesses because it allows them to transfer funds to India and investors to obtain their investments back home.
  • LRS also has some additional advantages, such as quick transfer timing and no exchange rate problems.
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