{"id":1140,"date":"2026-05-27T10:33:08","date_gmt":"2026-05-27T10:33:08","guid":{"rendered":"https:\/\/materials.simplycurrentaffairs.com\/?p=1140"},"modified":"2026-06-01T10:33:20","modified_gmt":"2026-06-01T10:33:20","slug":"liberalised-remittance-scheme","status":"publish","type":"post","link":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/2026\/05\/27\/liberalised-remittance-scheme\/","title":{"rendered":"Liberalised\u00a0Remittance Scheme"},"content":{"rendered":"\n

Liberalised\u00a0Remittance Scheme<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h2>\n\n\n\n

About<\/strong><\/mark><\/strong><\/h3>\n\n\n\n
    \n
  • The\u00a0Liberalised\u00a0Remittance Scheme (LRS), introduced by the\u00a0Reserve Bank of India\u00a0<\/strong>in\u00a02004<\/strong>\u00a0enables\u00a0Indian residents\u00a0<\/strong>(including minors)\u00a0to freely remit funds abroad for various approved purposes\u00a0<\/strong>such as overseas business trip, education, medical treatment, investments in shares, buying immovable properties, etc.\u00a0<\/li>\n\n\n\n
  • As per current LRS regulations, Indian residents can remit up to\u00a0USD 2,50,000 per Financial Year<\/strong>.\u00a0\u00a0\n
      \n
    • These funds can be used for\u00a0any permissible current or capital account transaction, or a combination of both.<\/strong>\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

      Objective<\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
        \n
      • The primary\u00a0objective\u00a0of LRS is to\u00a0liberalize the existing foreign exchange regulations\u00a0<\/strong>and\u00a0facilitate\u00a0the smooth transfer of funds abroad\u00a0<\/strong>by Indian residents.\u00a0\u00a0<\/li>\n\n\n\n
      • The scheme also aims at\u00a0promoting international trade and investment,\u00a0<\/strong>as well as for\u00a0facilitating\u00a0capital flows into and out of India.<\/strong><\/li>\n<\/ul>\n\n\n\n

        Who can avail the benefits under this scheme?<\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
          \n
        • In order to\u00a0avail the benefit of the LRS, the individual must be an\u00a0Indian resident\u00a0<\/strong>as defined under the\u00a0Foreign Exchange Management Act (FEMA).\u00a0<\/strong>It\u00a0cannot be used by corporations, partnership firms, Hindu Undivided Family (HUF), trusts, etc.<\/strong>\u00a0\n
            \n
          • Under FEMA, a person is treated as a resident if he has been in India for\u00a0more than 182 days\u00a0<\/strong>in the preceding year.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • He\/she must also have a\u00a0valid PAN card, a bank account in India, and a valid passport.<\/strong><\/li>\n<\/ul>\n\n\n\n

            Limitations<\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
              \n
            • The\u00a0maximum\u00a0amount that can be remitted in\u00a0a financial year\u00a0is\u00a0USD 2,50,000.\u00a0<\/strong>Any amount\u00a0exceeding this limit\u00a0<\/strong>requires\u00a0prior permission from RBI.<\/strong>\u00a0<\/li>\n\n\n\n
            • Remittances under the scheme are\u00a0not\u00a0permitted\u00a0for certain activities\u00a0<\/strong>such as\u00a0purchase\u00a0of lottery tickets, margin trading, and speculation in foreign exchange markets.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

              Liberalised\u00a0Remittance Scheme About Objective Who can avail the benefits under this scheme? Limitations<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-1140","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/comments?post=1140"}],"version-history":[{"count":1,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1140\/revisions"}],"predecessor-version":[{"id":1141,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1140\/revisions\/1141"}],"wp:attachment":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/media?parent=1140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/categories?post=1140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/tags?post=1140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}