LIBERALISED REMITTANCE SCHEME (LRS) FOR RESIDENT INDIVIDUALS
RBI introduced LRS on Feb 04, 2004. Major changes were made by RBI in LRS w.e.f. 01.06.2015 (based
on Govt. notification 15.05.15). Eligibility: All resident individuals including minors and non-individuals are eligible. Remittances under the facility can be consolidated in respect of family members
subject to individual family
members complying with the terms and conditions.
It is mandatory to have PAN number to make remittances. Forex can be purchased from authorised person which indude AD Category-1 Banks, AD Category-2 and
Full Fledged Money Changers. Capital Accounts transactions Remittances up to USD 250,000 per financial year
can be allowed for
permissible capital account transactions as under: I) opening of foreign currency
account abroad; ii)
purchase of property abroad;
ill) making investments abroad;
iv) setting up Wholly owned subsidiaries and Joint Ventures abroad;
v) loans including in Indian Rupees to Non-resident Indians relatives as defined in
Companies Act, 2013. Current account transactions • : All facilities (Including private/business visits) for
remittances have been
subsumed under overall limit of USD 250,000/FY.
Facilities for Individuals
1. Individuals can avail of forex facility for the following purposes within the limit of USD
250000. Additional
remittance shall require prior approval of RBI. 1. Private visits to a country (except Nepal & Bhutan)
2. Gift or donation. 3. Going abroad for employment or immigration. 4. Maintenance of close relatives abroad
5. Travel for business, or attending a conference or specialized training or for meeting
medical expenses, or
check-up abroad, or for accompanying as attendant to a patient going abroad for
medical treatment/ check-up. 7. Expenses for medical treatment abroad
B. Studies abroad
9. Any other current account transaction
Exception : For immigration,medical treatment and studies abroad, the individualmay
avail of exchange facility in
excess of LRS limit if required by a country of emigration,medical institute offering
treatment or the university, respectively. Facilities for persons other than individual The following remittances shall require RBI
approval:
(i) Donations beyond 1%of forex earnings in previous 3 FY or USD 5000000, whichever is less, for:
a) creation of Chairs in reputed educational institutes, b) contribution to funds (not being an investment fund) promoted by educational
institutes; and
c) technical institution/body/ association in the field of activity of the donor Company. (ii) Commission, per transaction, to agents abroad for sale of residential flats or
commercial plots in India exceeding
USD 25,000 or 5%of inward remittance whichever ismore. (iii) Remittances exceeding USD 10000000 per project for any consultancy services for
infrastructure projects and
USD 1,000,000 per project, for other consultancy services procured fromoutside India. (iv) Remittances exceeding 5%of investment brought into India or USD 100,000
whichever is higher, by an entity in
India by way of reimbursement of pre-incorporation expenses. Mode of remittance: The Scheme can be used for outward remittance in the formof 'a
DD either in the resident
individual's own name or in the name of beneficiary with whomhe intends putting
through the permissible transactions
at the time of private visit abroad, can be effected, against self declaration of the
remitter in the format prescribed. Loan facility : Banks should not extend any kind of credit facilities to resident
individuals to facilitate remittances under
the Scheme. Remittances not available under the scheme:
i. Remittance for any purpose specifically prohibited under Schedule-I (like purchase of
lottery/sweep stakes,
tickets, prescribedmagazines etc.) or itemrestricted under Schedule II of FEMA
(Current A/c Transactions) Rules, 2000.
ii. Remittancesmade to Bhutan,Nepal,Mauritius or Pakistan.
iii. Remittancesmade to countries identified by the Financial Action Task Force (FATF)
as "non co-operative
countries and territories" as available on FATF website (viz Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines and Ukraine) or as notified by RBI.
iv. Remittances to individuals and entities identified as posing significant risk of
committing acts of terrorismas advised
separately by RBI to the banks. Reporting of the transactions: The remittancesmade will be reported in the R-Return
in the normal course. The
ADsmay also prepare and keep on record dummy FormA2, in respect of remittances
exceeding USD 5000. With effect from01.07.13, the banks are required to upload the data inOnline Return
Filing System(OAFS) on a
monthly basis, by 5th of the followingmonth to which it relates.Where there is no
information, 'nil' figure is to be
uploaded. Rules related to release / remittance of foreign exchange to residents
ADbanks can release forex to residents in India as per Rules framed u/s Sec 5 of
FEMA. Forex cannot be released for
Schedule I transactions. For Schedule II transactions,Govt. permission is required. For
Schedule III transactions, forex
can be released up to specified limit byADbanks. Beyond that limit, approval of RBI is
required. Ceilings on release of amount by ADs without RBI approval are given above, under
LRS. Nepal & Bhutan - Forex for any kind of travel to or for any transactionwith persons
resident inNepal andBhutan cannot
be released. Any amount of Indian currency can be used.Highest denomination of
currency note can beRs.100. Up to Rs.25000, any denomination is allowed. Form of foreign currency: 1. Coins, currency notes and traveller's cheques. Currency
notes/coins can be up to US$
3000. The balance can be traveller's cheque or banker's draft. 2. For Iraq and Libya currency notes and coins can be obtained up toUS$ 5000 or its
equivalent. 3. For Iran, Russian Federation, and other Republics of Commonwealth of Independent
Countries, no ceiling. Mode of purchase: In cash up toRs.50,000/-.Above this, payment byway of a crossed
cheque/banker's cheque/pay
order/demand draft / debit card / credit card only.
Surrender of unused forex: Currency notes and travellers' cheques within 180 days of
return. Retention of unused forex : US$2,000 or its equivalent. There is no restriction on
residents for holding foreign
currency coins. Use of International Credit Card (ICC): Use of the ICCs / ATMs/ Debit Cards can be
made for personal
payments and for travel abroad for various purposes, only up to specified limits. Export / Import of Indian currency by Residents or non-residents : Up to Rs. 25000
each to or from
any country other than Nepal or Bhutan (Pakistan & Bangladesh Rs.10000).
Import of Foreign exchange from abroad: Any amount subject to declaration on CDF. Mandatory CDF : Where total amount exceeds US$ 10,000 (or its equivalent) and/or
value of foreign
currency notes exceeds US$ 5,000, declaration should be made to the Customs
Authorities through
Currency Declaration Form (CDF), on arrival in India. Application for purchase of FC : Form A2. It is not required up to $ 25000. A2 to be
preserved by banks for one
year for verification by Auditors. endorsement on Passport : It is not mandatory for
Authorised Dealers to
endorse the amount of foreign exchange sold for travel abroad on the passport of the
traveller. However, if
requested by the traveller, AD may record under its stamp, date and signature, details
of foreign exchange sold
for travel
RBI introduced LRS on Feb 04, 2004. Major changes were made by RBI in LRS w.e.f. 01.06.2015 (based
on Govt. notification 15.05.15). Eligibility: All resident individuals including minors and non-individuals are eligible. Remittances under the facility can be consolidated in respect of family members
subject to individual family
members complying with the terms and conditions.
It is mandatory to have PAN number to make remittances. Forex can be purchased from authorised person which indude AD Category-1 Banks, AD Category-2 and
Full Fledged Money Changers. Capital Accounts transactions Remittances up to USD 250,000 per financial year
can be allowed for
permissible capital account transactions as under: I) opening of foreign currency
account abroad; ii)
purchase of property abroad;
ill) making investments abroad;
iv) setting up Wholly owned subsidiaries and Joint Ventures abroad;
v) loans including in Indian Rupees to Non-resident Indians relatives as defined in
Companies Act, 2013. Current account transactions • : All facilities (Including private/business visits) for
remittances have been
subsumed under overall limit of USD 250,000/FY.
Facilities for Individuals
1. Individuals can avail of forex facility for the following purposes within the limit of USD
250000. Additional
remittance shall require prior approval of RBI. 1. Private visits to a country (except Nepal & Bhutan)
2. Gift or donation. 3. Going abroad for employment or immigration. 4. Maintenance of close relatives abroad
5. Travel for business, or attending a conference or specialized training or for meeting
medical expenses, or
check-up abroad, or for accompanying as attendant to a patient going abroad for
medical treatment/ check-up. 7. Expenses for medical treatment abroad
B. Studies abroad
9. Any other current account transaction
Exception : For immigration,medical treatment and studies abroad, the individualmay
avail of exchange facility in
excess of LRS limit if required by a country of emigration,medical institute offering
treatment or the university, respectively. Facilities for persons other than individual The following remittances shall require RBI
approval:
(i) Donations beyond 1%of forex earnings in previous 3 FY or USD 5000000, whichever is less, for:
a) creation of Chairs in reputed educational institutes, b) contribution to funds (not being an investment fund) promoted by educational
institutes; and
c) technical institution/body/ association in the field of activity of the donor Company. (ii) Commission, per transaction, to agents abroad for sale of residential flats or
commercial plots in India exceeding
USD 25,000 or 5%of inward remittance whichever ismore. (iii) Remittances exceeding USD 10000000 per project for any consultancy services for
infrastructure projects and
USD 1,000,000 per project, for other consultancy services procured fromoutside India. (iv) Remittances exceeding 5%of investment brought into India or USD 100,000
whichever is higher, by an entity in
India by way of reimbursement of pre-incorporation expenses. Mode of remittance: The Scheme can be used for outward remittance in the formof 'a
DD either in the resident
individual's own name or in the name of beneficiary with whomhe intends putting
through the permissible transactions
at the time of private visit abroad, can be effected, against self declaration of the
remitter in the format prescribed. Loan facility : Banks should not extend any kind of credit facilities to resident
individuals to facilitate remittances under
the Scheme. Remittances not available under the scheme:
i. Remittance for any purpose specifically prohibited under Schedule-I (like purchase of
lottery/sweep stakes,
tickets, prescribedmagazines etc.) or itemrestricted under Schedule II of FEMA
(Current A/c Transactions) Rules, 2000.
ii. Remittancesmade to Bhutan,Nepal,Mauritius or Pakistan.
iii. Remittancesmade to countries identified by the Financial Action Task Force (FATF)
as "non co-operative
countries and territories" as available on FATF website (viz Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines and Ukraine) or as notified by RBI.
iv. Remittances to individuals and entities identified as posing significant risk of
committing acts of terrorismas advised
separately by RBI to the banks. Reporting of the transactions: The remittancesmade will be reported in the R-Return
in the normal course. The
ADsmay also prepare and keep on record dummy FormA2, in respect of remittances
exceeding USD 5000. With effect from01.07.13, the banks are required to upload the data inOnline Return
Filing System(OAFS) on a
monthly basis, by 5th of the followingmonth to which it relates.Where there is no
information, 'nil' figure is to be
uploaded. Rules related to release / remittance of foreign exchange to residents
ADbanks can release forex to residents in India as per Rules framed u/s Sec 5 of
FEMA. Forex cannot be released for
Schedule I transactions. For Schedule II transactions,Govt. permission is required. For
Schedule III transactions, forex
can be released up to specified limit byADbanks. Beyond that limit, approval of RBI is
required. Ceilings on release of amount by ADs without RBI approval are given above, under
LRS. Nepal & Bhutan - Forex for any kind of travel to or for any transactionwith persons
resident inNepal andBhutan cannot
be released. Any amount of Indian currency can be used.Highest denomination of
currency note can beRs.100. Up to Rs.25000, any denomination is allowed. Form of foreign currency: 1. Coins, currency notes and traveller's cheques. Currency
notes/coins can be up to US$
3000. The balance can be traveller's cheque or banker's draft. 2. For Iraq and Libya currency notes and coins can be obtained up toUS$ 5000 or its
equivalent. 3. For Iran, Russian Federation, and other Republics of Commonwealth of Independent
Countries, no ceiling. Mode of purchase: In cash up toRs.50,000/-.Above this, payment byway of a crossed
cheque/banker's cheque/pay
order/demand draft / debit card / credit card only.
Surrender of unused forex: Currency notes and travellers' cheques within 180 days of
return. Retention of unused forex : US$2,000 or its equivalent. There is no restriction on
residents for holding foreign
currency coins. Use of International Credit Card (ICC): Use of the ICCs / ATMs/ Debit Cards can be
made for personal
payments and for travel abroad for various purposes, only up to specified limits. Export / Import of Indian currency by Residents or non-residents : Up to Rs. 25000
each to or from
any country other than Nepal or Bhutan (Pakistan & Bangladesh Rs.10000).
Import of Foreign exchange from abroad: Any amount subject to declaration on CDF. Mandatory CDF : Where total amount exceeds US$ 10,000 (or its equivalent) and/or
value of foreign
currency notes exceeds US$ 5,000, declaration should be made to the Customs
Authorities through
Currency Declaration Form (CDF), on arrival in India. Application for purchase of FC : Form A2. It is not required up to $ 25000. A2 to be
preserved by banks for one
year for verification by Auditors. endorsement on Passport : It is not mandatory for
Authorised Dealers to
endorse the amount of foreign exchange sold for travel abroad on the passport of the
traveller. However, if
requested by the traveller, AD may record under its stamp, date and signature, details
of foreign exchange sold
for travel
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