RBI raised the FOREX Remittance

Date: February 04, 2015

Liberalised Remittance Scheme (LRS) RBI FOREX India

Reserve Bank doubles forex remittance limit

The central bank has doubled the amount of foreign exchange that an individual can remit in a year under a scheme that allows asset purchase outside India. Now,$250,000 (Rs. 1.5 crore) per person per year is permitted under the Liberalised Remittance Scheme (LRS). The scheme was started in 2004 with a view to simplify foreign exchange avenues available to Indians.

Under the Liberalised Remittance Scheme, Indians nationals can open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions, without permission from the RBI.

Background

The RBI has taken decision of increasing forex limit after reviewing the external sector outlook as India’s foreign exchange reserves touched all-time high at $322.135 billion in mid-January 2015 and further exercise in macro prudential management.

While earlier in 2013, RBI had reduced the limit for FOREX remittances under this scheme to $75,000 as the rupee came under strong pressure. But later, in June 2014, it was again raised the limit to $125,000 (Rs. 75 lakh).