Rationalisation under LRS for current and capital account transactions
On February 3, 2015 through the Sixth Bi-Monthly Monetary Policy Statement, Dr. Raghuram G. Rajan, Governor of RBI enhanced the limit under the LRS to USD 250,000 per person per year.
It has been decided by RBI to make changes for further liberalization and rationalization on the existing guidelines on the Liberalised Remittance Scheme (LRS) for resident individuals and the existing guidelines issued under the Foreign Exchange Management (Current Account Transactions) Rules, 2000. AD banks may now allow remittances by a resident individual up to USD 250,000 per financial year 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.