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RBI tightens reporting norms of outward remittances to improve monitoring

Now banks will be required to upload daily transaction-wise information undertaken by them under LRS

Press Trust of India  |  Mumbai 

RBI, Reserve Bank of India
Photo: Reuters

The Reserve on Thursday tightened reporting norms for the Liberalised Scheme (LRS) under which an individual can transfer up to USD 2,50,000 abroad in a year.

The transactions are currently permitted by banks based on the declaration made by the remitter.

The monitoring of adherence to the limit is confined to obtaining such a declaration without independent verification, in the absence of a reliable source of information.

"In order to improve monitoring and also to ensure compliance with the limits, it has been decided to put in place a daily reporting system by banks of transactions undertaken by individuals under LRS, which will be accessible to all the other ADs," the said in a notification.

Now banks will be required to upload daily transaction-wise information undertaken by them under

Under the LRS, all resident individuals, including minors, are allowed to freely up to USD 2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.

Individuals can avail of foreign exchange facility for the purposes within the limit of USD 2,50,000 only.

The scheme was introduced on February 4, 2004, with a limit of USD 25,000. The limit has been revised in stages consistent with prevailing macro and micro economic conditions.

First Published: Thu, April 12 2018. 22:28 IST
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