Liberalized Remittance Scheme (LRS) in India
Role of FEMA in Forex Management
The Foreign Exchange Management Act (FEMA) provides a legal framework for forex transactions in India, ensuring smooth international trade and capital flow.
Liberalized Remittance Scheme (LRS) in India
Under the LRS forex remittance rules, resident individuals can remit up to USD 250,000 per financial year for various foreign currency transactions.
LRS Remittance Limits and Rules
- Remittance Limit:
- Resident Indians can remit up to USD 250,000 per year.
- Foreign exchange equivalent of USD 3,000 can be carried in cash for travel.
- Permissible Transactions:
- Education and medical forex payments
- Foreign travel forex expenses
- Investments in global stocks, bonds, and property
- Maintenance of relatives abroad
- Prohibited Transactions:
- Forex remittances for gambling or betting
- Trading in forex abroad
