FEMA - Liberalised Remittance Scheme for Resident Individuals - Reduction of limit from USD 200,000 to USD 75,000
ON a review of the Liberalised Remittance Scheme (LRS) for Resident Individuals, RBI has decided to reduce the existing limit of USD 200,000 per financial year to USD 75,000 per financial year (April - March) with immediate effect.
The scheme should no longer be used for acquisition of immovable property, directly or indirectly, outside India; the scheme should not be used for making remittances for any prohibited or illegal activities such as margin trading, lottery etc.; Resident individuals have now been allowed to set up Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS) outside India for bonafide business activities outside India within the limit of USD 75,000.
The limit for gift in Rupees by Resident Individuals to NRI close relatives and loans in Rupees by resident individuals to NRI close relatives shall stand modified to USD 75,000 per financial year.
RBI AP (DIR Series) Circular No. 24, Dated: August 14, 2013