CAIIB · BFM

Lrs And Other Remittance Facilities For Residents

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.

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What is the current annual limit under the Liberalised Remittance Scheme (LRS) for resident individuals?

The current LRS limit is USD 250,000 per financial year per resident individual, applicable for permissible current and capital account transactions.

What is the minimum age requirement for a resident individual to remit funds under LRS?

No minimum age; minors can remit through natural guardians.

Who is eligible to remit funds under the Liberalised Remittance Scheme?

All resident individuals, including minors, are eligible under LRS; for minors, the natural guardian must countersign the application on their behalf.

Under which FEMA schedule are current account remittances by individuals governed?

Schedule II of FEMA (Current Account Transactions) Rules, 2000.

Which regulatory authority governs the LRS and other remittance facilities for residents in India?

The Reserve Bank of India (RBI) governs LRS and other outward remittance facilities under the Foreign Exchange Management Act (FEMA), 1999.

What is the LRS annual remittance ceiling per financial year for a resident individual?

USD 250,000 per financial year per individual.

Can resident individuals remit money under LRS for purchasing property abroad?

Yes, resident individuals can remit funds under LRS to acquire immovable property outside India as it is a permissible capital account transaction under the scheme.

Can a resident individual open a foreign currency account in India using LRS proceeds?

No; LRS proceeds must be remitted abroad or used as specified.

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