Changes in LRS
Liberalized Remittance Scheme (LRS) for Resident Individuals- Increase of limit from USD 125,000 to USD 250,000 :
With reference to the circular RBI/2013-14/620 A.P. (DIR Series) Circular No.106 dated June 1, 2015, please note that the LRS limit’s have been revised to USD 250,000 in a financial for any permitted current or capital account transaction or a combination of both.
If an individual has already remitted any amount under the LRS, then the applicable limit for such an individual would be reduced from the present limit of USD 250,000 for the financial year by the amount already remitted. The permissible capital account transactions by an individual under LRS are:
- opening of foreign currency account abroad with a bank;
- purchase of property abroad;
- making investments abroad;
- setting up Wholly owned subsidiaries and Joint Ventures abroad;
- extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 2013.
- Usage of the DBS International Debit card for ATM cash withdrawals as well as Purchases internationally.
Further, to facilitate ease of transactions, all the facilities (including private / business visits) for release of exchange/remittances for current account transactions available to resident individuals under Para 1 of Schedule III to the Foreign Exchange Management (Current Account Transactions) Rules, 2000, as amended from time to time, shall now be subsumed under the overall limit of USD 250,000.
Details of Business trip
For business trips to foreign countries, resident individuals / individuals having proprietorship firms can avail of foreign exchange up to USD 2,50,000 in a financial year irrespective of the number of visits undertaken during the year. This limit has been subsumed under the Liberalised Remittance Scheme w.e.f. May 26, 2015.
Visits in connection with attending of an international conference, seminar, specialised training, apprentice training, etc., are treated as business visits. Release of foreign exchange exceeding USD 2,50,000 for business travel abroad, irrespective of the period of stay, by residents require prior permission from the Reserve Bank.
However, if an employee is being deputed by a company and the expenses are borne by the company, then such expenses shall be treated as residual current account transactions and may be permitted by the AD bank, without any limit, subject to verifying the bonafides of the transaction.
For item numbers as mentioned at (iv)[ emigration], (vii)[expenses in connection with medical treatment abroad] and (viii)[studies abroad] in Para 1 of Schedule III provided at Annex 1, individuals may avail of exchange facility for an amount in excess of the overall limit prescribed under the LRS, if it is so required by a country of emigration, medical institute offering treatment or the university respectively. Gift in Indian Rupees by resident individuals to NRI relatives as defined in the Companies Act, 2013 shall also be subsumed under the LRS limit.
Therefore, our Bank henceforth will not be able to allow any remittances under the LRS Scheme which is not in line with the above mentioned circular.
For any clarification we request you to contact our 24x7 Customer Care local Helpline 1860 267 1234 / 1800 209 4555, International helpline 91 44 6685 4555 or your Relationship Manger.
Corporate banking customers are requested to contact your Relationship Manager or visit DBS Bank branch.
