Liberalised Remittances Scheme (LRS) of the RBI : Recently, for the first time since the Covid-19 pandemic disrupted overseas travel and study plans, remittances sent abroad by resident Indians under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) declined by 6.84%.
o The amount fell to $29.56 billion in the fiscal year 2024-25 (FY25) from $31.74 billion in FY24.
o Launched by RBI in 2004 to facilitate outward remittances by resident individuals from India.
o Remittance Limit: Individuals, including minors, can remit up to USD 250,000 per financial year (April–March) under LRS.
o Permissible Uses: Travel expenses (personal or business) , Medical treatment abroad , Education fees overseas , Gifts and donations , Maintenance of close relatives abroad and Investments in shares, debt instruments, and immovable property overseas
o Individuals may open and maintain foreign currency accounts abroad for transactions allowed under LRS.
o Scheme is not available to corporations, partnership firms, Hindu Undivided Families (HUFs), trusts, or similar entities.
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