Foreign exchange remittance facilities for individuals
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
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 abroad for any permissible current or capital account transaction.
What is the full form of FEMA?
Foreign Exchange Management Act, enacted in 1999.
What is the annual limit for remittances under the Liberalised Remittance Scheme (LRS)?
Under LRS, a resident individual can remit up to USD 250,000 (or its equivalent in other currencies) per financial year without seeking RBI approval.
Under LRS, what is the maximum remittance allowed per financial year per individual?
USD 250,000 per financial year per resident individual.
Which authority regulates foreign exchange remittance facilities for individuals in India?
The Reserve Bank of India (RBI) regulates foreign exchange remittances under the provisions of the Foreign Exchange Management Act (FEMA), 1999.
Which form must be submitted by a resident for outward remittance under FEMA?
Form A2 must be submitted to the Authorised Dealer bank.
What is FEMA and when did it replace FERA?
The Foreign Exchange Management Act (FEMA) is a civil law enacted in 1999 that replaced the Foreign Exchange Regulation Act (FERA) of 1973, shifting the focus from control to management of foreign exchange.
What TCS rate applies on LRS remittances exceeding Rs. 7 lakh per year for general purposes?
20% TCS applies on LRS remittances above Rs. 7 lakh.
Video classes for this chapter
Foreign exchange remittance facilities for individuals
Foreign exchange remittance facilities for individuals Part 2
Foreign Exchange Remittance Facilities For Individuals
Foreign exchange remittance facilities for individuals
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