RBI tightens norms for LRS by making quoting of Permanent Account Number (PAN) mandatory even for transactions below $25,000

On June 19, the Reserve Bank of India (RBI) has tightened norms for Liberalised Remittance Scheme (LRS) by making quoting of the Permanent Account Number (PAN) mandatory even for transactions below $25,000. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to 2,50,000 US dollar per financial year for any permissible current or capital account transaction or a combination of both. Earlier, a system for daily reporting of individual transactions under the LRS by banks was been put in place. This system enables the banks to view the remittances already sent by an individual during the financial year, thus improving monitoring and ensuring compliance with the LRS limits.