Liberalised Remittance Scheme - As on Apr 06, 2023

Chapters / List

1. What is the Liberalised Remittance Scheme (LRS) of USD 2,50,000 ?

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2. What are the prohibited items under the Scheme?

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3. What are the purposes under FEM (CAT) Amendment Rules, 2015, under which a resident individual can avail of foreign exchange facility?

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4. Under LRS are resident individuals required to repatriate the income earned on investments abroad, over and above the principal amount?

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5. Can remittances under the LRS facility be consolidated in respect of family members?

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6. Is the AD required to check permissibility of remittances based on nature of transaction or allow the same based on remitter's declaration?

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7. Is it mandatory for resident individuals to have Permanent Account Number (PAN) for sending outward remittances under the Scheme?

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8. Are there any restrictions on the frequency of the remittance?

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9. Resident individuals (but not permanently resident in India) can remit up to net salary after deduction of taxes. However, if he has exhausted the limit of USD 2,50,000 as net salary remittance and desires to remit any other income under LRS is it permissible as the limit will be over and above USD 2,50,000?

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10. Para 5.4 of AP DIR Circular 106 dated June 01, 2015 states that the applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance for capital account transactions. Whether this restriction applies to current account transactions?

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11. Are there any restrictions towards remittances to Mauritius and Pakistan for permissible current account transactions?

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12. What are the requirements to be complied with by the remitter?

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13. Can remittances be made only in US Dollars?

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14. Are intermediaries expected to seek specific approval for making overseas investments available to clients?

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15. Are there any restrictions on the kind/quality of debt or equity instruments an individual can invest in?

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16. Whether credit facilities (fund or non-fund based) in Indian Rupees or foreign currency can be extended by AD banks to resident individuals?

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17. Can bankers open foreign currency accounts in India for residents under LRS?

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18. Can an Offshore Banking Unit (OBU) in India be treated on par with a branch of the bank outside India for the purpose of opening of foreign currency accounts by residents under the Scheme?

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19. What are the documents required for withdrawal/remittance of foreign exchange for purposes mentioned in para 1 of Schedule III to FEM (CAT) Amendment Rules, 2015?

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20. Whether documents viz 15 CA, 15 CB have to be taken in all outward remittance cases including remittances for maintenance etc.?

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21. Will the expenses incurred by an LLP to sponsor the education expense of its partners who are pursuing higher studies for the benefit of the LLP will be outside the LRS limit of such individuals (partners)?

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22. Clarification on remittance by sole proprietor under LRS.

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23. Whether prior approval is required to open, maintain and hold foreign currency account with a bank outside India for making remittances under the LRS?

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24. What are the facilities under Schedule III of FEM (CAT) Amendment Rules, 2015 available for persons other than individual?

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25. Can a resident individual make a rupee loan to a NRI/PIO who is a close relative of resident individual, by of crossed cheque/ electronic transfer?

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26. Can a resident individual make a rupee gift to a NRI/PIO who is a close relative of resident individual, by of crossed cheque/ electronic transfer?

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