RBI's LRS review to align with wider economic, geopolitical conditions

The central bank is reassessing annual limits, permitted uses, currency options and compliance alignment in its Liberalised Remittance Scheme amid evolving economic realities

The Reserve Bank of India’s (RBI’s) move to review the Liberalised Remittance Scheme (LRS) framework is meant to align it with the wider economic and geopolitical conditions, experts said.

 

In the annual report, released on Thursday, RBI said it has initiated a comprehensive framework and is examining various aspects including the annual remittance limit, permissible purposes, transaction modes, and currency options.

 

The LRS scheme was introduced in 2004 allowing all resident individuals to remit up to $25,000 per financial year for any permissible current or capital account transaction or a combination of both free of charge.

 

This was gradually revised