{"id":2943,"date":"2026-11-02T12:51:55","date_gmt":"2026-11-02T07:21:55","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=2943"},"modified":"2026-11-02T14:42:49","modified_gmt":"2026-11-02T09:12:49","slug":"what-is-the-liberalised-remittance-scheme-lrs","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-the-liberalised-remittance-scheme-lrs\/","title":{"rendered":"Liberalised Remittance Scheme: Indians&#8217; Overseas Spending Falls to Two-Year Low"},"content":{"rendered":"<h2><b>Liberalised Remittance Scheme Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Outward remittances from India under the Reserve Bank of India\u2019s (RBI) Liberalised Remittance Scheme (LRS) have crossed $20 billion during the first eight months of 2026.<\/span><\/p>\n<h2><b>About Liberalised Remittance Scheme<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">It is part of the <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/foreign-exchange-management-act-fema\/\" target=\"_blank\"><b>Foreign Exchange Management Act (FEMA) 1999<\/b><\/a><span style=\"font-weight: 400;\">, which lays down the guidelines for outward remittance from India.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It was <\/span><b>introduced on February 4, 2004.<\/b><\/li>\n<li><b>Remittance Limit:<\/b><span style=\"font-weight: 400;\"> Under LRS, all resident <\/span><b>individuals, including minors<\/b><span style=\"font-weight: 400;\">, are allowed to freely remit <\/span><b>up to USD $250,000 per financial year<\/b><span style=\"font-weight: 400;\"> (April\u2013March).\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This can be for any permissible current or capital account transaction, or a combination of both.<\/span><\/li>\n<li><b>Eligibility:<\/b><span style=\"font-weight: 400;\"> Only individual Indian residents, including minors, are permitted to remit funds under LRS.<\/span><\/li>\n<li><b>Frequency of Remittances:<\/b><span style=\"font-weight: 400;\"> There is no restriction on the frequency or number of transactions during a financial year.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><b>Types of transactions permitted<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Opening of a foreign currency account abroad with a bank;<\/span><\/li>\n<li><b>Acquisition of<\/b> <b>immovable property abroad,<\/b><span style=\"font-weight: 400;\"> overseas direct investment (ODI), and overseas portfolio investment (OPI);<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Extending loans, including loans in Indian Rupees to non-resident Indians (NRIs) who are relatives as defined in the Companies Act, 2013;<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Private visits abroad (excluding Nepal and Bhutan);\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Maintenance of relatives abroad;Medical treatment abroad; Pursuing studies abroad;<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Any other current account transaction that does not fall under the definition of current account (FEMA 199);<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Types of transactions not permitted<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Remittance for purposes specifically prohibited, such as <\/span><b>buying lottery tickets<\/b><span style=\"font-weight: 400;\"> or restricted items.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Remittance for <\/span><b>buying Foreign Currency Convertible Bonds<\/b><span style=\"font-weight: 400;\"> (FCCBs) issued by Indian companies in the overseas secondary market.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Sending money for trading in <\/span><b>foreign exchange abroad.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">Sending money to individuals and entities identified as posing a significant risk of terrorism.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Sending money to countries identified as <\/span><b>\u201cnon-cooperative countries and territories\u201d<\/b><span style=\"font-weight: 400;\"> by the Financial Action Task Force (FATF).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/indianexpress.com\/article\/business\/lrs-remittances-20-billion-eight-months-2026-10946199\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s outward remittances under the Reserve Bank of India&#8217;s Liberalised Remittance Scheme (LRS) declined to a two-year low of $1.94 billion in November 2025, driven largely by reduced spending on overseas education. Introduced in 2004 under the Foreign Exchange Management Act (FEMA), the scheme permits resident individuals, including minors, to remit up to $250,000 per financial year for eligible overseas expenses such as education, travel, medical treatment and investments.<\/p>\n","protected":false},"author":5,"featured_media":131654,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[11301,21,22,23],"class_list":["post-2943","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-prelims-current-affairs","tag-liberalised-remittance-scheme","tag-prelims-pointers","tag-upsc-current-affairs","tag-upsc-prelims-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/2943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=2943"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/2943\/revisions"}],"predecessor-version":[{"id":131724,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/2943\/revisions\/131724"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/131654"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=2943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=2943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=2943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}