What is the significance of the LRS?
|Primary Reasons ALLOWED use the Liberalized Remittance Scheme as listed by the R.B.I|
|1. Private visits to any country (except Nepal and Bhutan)|
|2. Gift or donation|
|3. Going abroad for employment|
|5. Maintenance of close relatives abroad|
|6. Travel for business, or attending a conference or specialized training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up|
|7. Expenses in connection with medical treatment abroad|
|8. Studies abroad|
|9. Any other current account transaction which is not covered under the definition of the current account in FEMA 1999|
|Prohibited Items under the Scheme|
|1. 1. Remittance for items prohibited under Schedule-I : purchase of lottery tickets/sweep stakes, proscribed magazines etc.|
|2. Remittance for purchase of FCCBs in the overseas market. (FCCB – Foreign Currency Convertible Bond)|
|3. Remittance for trading in foreign exchange.|
|4. Remittance for any capital account remittance to countries identified as “non-cooperative countries and territories” by the Financial Action Task Force, at that time|
|5. Direct/indirect remittances to individuals/entities who pose significant risks of committing terrorist acts. This is under separate advise by the RBI to the authorized banks.|
1. One must select an RBI authorized Bank or money changer. The one with the best exchange rate should be opted for.
2. The account needs to have been maintained for a year prior to remittance. Else, bank statements for the previous year or copies of the latest income tax assessment order or tax returns filed are to be submitted.
3. The A2 form with the reason for remittance is to be submitted.
4. KYC documents are to be submitted –
5. The money now needs to be transferred to the bank or the money changer.