Remittance of Assets Out of India, Remittance Facilities to Residents, Non-Residents and Persons of Indian Origin, and I
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What is the Liberalised Remittance Scheme (LRS) and who is eligible to use it?
LRS is an RBI scheme allowing resident individuals (including minors) to remit up to USD 250,000 per financial year for permissible current and capital account transactions. It is not available to corporates, partnership firms, Hindu Undivided Families, or trusts.
What is the purpose of the Liberalised Remittance Scheme introduced by RBI?
To allow residents to freely remit up to USD 250,000 per year abroad.
What is the annual limit for remittance under the Liberalised Remittance Scheme (LRS)?
The LRS limit is USD 250,000 per financial year (April–March) per individual. This limit was enhanced from earlier lower thresholds to facilitate broader participation in global investments and travel.
Under FEMA, what is a 'capital account transaction' in the context of remittances?
A transaction that alters assets or liabilities outside India.
Under which section of FEMA does RBI derive authority to regulate remittance of assets out of India?
RBI derives authority primarily under Section 10 and Section 47 of FEMA, 1999, along with Schedule III of the Foreign Exchange Management (Current Account Transactions) Rules, 2000 and related capital account regulations.
What is the full form of FEMA as applicable to foreign remittance laws in India?
Foreign Exchange Management Act, enacted in 1999.
Which authority in India is responsible for granting approval for remittance of assets out of India beyond LRS limits?
The Reserve Bank of India (RBI) is the competent authority; however, in certain cases involving large sums or foreign assets of deceased persons, RBI may refer matters to the Government of India or require special permissions.
What is an NRE account and what currency is it maintained in?
Non-Resident External account maintained in Indian Rupees.
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