RBI Doubles the FOREX Remittance Limit under Liberalised Remittance Scheme (LRS)
The Reserve Bank of India (RBI) in its monetary policy review has enhanced the limit for foreign exchange (FOREX) remittances under Liberalised Remittance Scheme (LRS) to $250,000 (Rs. 1.5 crore) per person per year.
This limit was doubled compared to earlier limit of $125,000 per person per year.
Under the LRS, Indians can open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions, without permission from the RBI.
Background
RBI has taken this decision 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.
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).
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Month: Current Affairs - February, 2015