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The Liberalized Remittance Scheme (LRS) of the Reserve Bank of India (RBI) allows resident individuals to remit a certain amount of money during a financial year to another country for investment and expenditure. According to the scheme, resident individuals may remit up to $250,000 per financial year. This money can be used to pay expenses related to travelling (private or for business), medical treatment, studying, gifts and donations, maintenance of close relatives and so on. In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc. The Scheme doesn’t allow remittances from India for margins or margin calls to overseas exchanges/overseas counterparty, purchase of Foreign currency convertible bonds (FCCBs) issued by Indian companies in the overseas secondary market, for trading in foreign exchange abroad and Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories.” The remitted amount, however, can be invested in shares, debt instruments, to buy immovable properties in overseas market and any local payments by a Resident Indian to an NRI Close Relatives are allowed only for “Gift” and “Loan.” All such transfers are under the scope of LRS limit monitoring.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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