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The Reserve Bank of India (RBI) clarified on Thursday resident individuals can buy immovable properties outside the country under the Liberalised Remittance Scheme (LBS). Under the scheme, remittances of $125,000 per year was allowed by the regulator last month, which was increased from the earlier $75,000 per year.
The central bank had reduced the limit from $200,000 last year as the rupee weakened sharply against the dollar.
"As a prudential measure, the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) had been reduced to $75,000 last year. In view of the recent stability in the foreign exchange market, it has been decided to enhance the eligible limit to $125,000 without end-use restrictions except for prohibited foreign exchange transactions such as margin trading, lottery and the like. Operating guidelines will be issued separately," RBI had said during the monetary policy review on June 3.
