Don't worry about changed LRS norms if you're making genuine transactions

Experts believe that the changes brought about by the RBI will have limited impact on those looking to send money abroad for the maintenance of their relatives

The Reserve Bank of India (RBI) has tightened the norms for outward remittance of money under the Liberalised Remittance Scheme (LRS). The definition of relatives to whom outward remittances can be made has been narrowed. Furthermore, earlier there was no insistence on submitting the Permanent Account Number (PAN) for making current account transactions of up to $25,000. This has now been made mandatory for all remittances, irrespective of the amount. 

The applicable definition of ‘relatives’ for remittances under LRS will henceforth be according to the Companies Act, 2013, instead of the Companies Act, 1956. The Companies Act, 2013 includes eight