Liberalised Remittance Scheme (LRS)
The Liberalised Remittance Scheme (LRS) was introduced by the RBI in 2004 to allow resident individuals (including minors) to remit funds abroad freely for any permissible current or capital account transaction. LRS is the primary channel through which resident Indians send money overseas for education, travel, medical treatment, gifts, maintenance of relatives abroad, and investments.
- Annual limit: USD 250,000 per financial year per resident individual (April–March)
- Legal basis: LRS operates under the Foreign Exchange Management Act (FEMA), 1999 (which replaced FERA, 1973)
- FEMA came into force: June 1, 2000
- Authorised Dealers (banks and non-bank entities licensed by RBI) process LRS transactions
- TCS (Tax Collected at Source): applies to outward remittances above INR 10 lakh per year (threshold revised in Budget 2025 from INR 7 lakh)
- LRS does NOT apply to Non-Resident Indians (NRIs) — they have separate repatriation rights through NRO/NRE/FCNR accounts
- Prohibited uses: purchase of lottery tickets, banned magazines, foreign exchange for trading on foreign exchanges
● Tracked since February 02, 2026 · last seen May 13, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief