The Reserve Bank of India has doubled the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) to $250,000 per person per year.
Further, in order to ensure ease of transactions, the RBI said all the facilities for release of exchange/ remittances for current account transactions available to resident individuals under Schedule III to Foreign Exchange Management (Current Account Transactions) Rules 2000, as amended from time to time, shall also be subsumed under this limit.
This enhancement in limit comes after a review of the external sector outlook and as a further exercise in macro prudential management, the central bank said.
It had reduced the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) to USD 75,000 in 2013 as a macro-prudential measure. With stability in the foreign exchange market, this limit was enhanced to USD 125,000 in June 2014 without end-use restrictions, except for prohibited foreign exchange transactions such as margin trading, lotteries and the like.