Mumbai, April 12, 2018
The Reserve Bank on Thursday tightened reporting norms for the Liberalised Remittance Scheme (LRS) under which an individual can transfer up to $2,50,000 abroad in a year.
The LRS transactions are currently permitted by banks based on the declaration made by the remitter.
The monitoring of adherence to the limit is confined to obtaining such a declaration without independent verification, in the absence of a reliable source of information.
"In order to improve monitoring and also to ensure compliance with the LRS limits, it has been decided to put in place a daily reporting system by AD banks of transactions undertaken by individuals under LRS, which will be accessible to all the other ADs," the RBI said in a notification.
Now banks will be required to upload daily transaction-wise information undertaken by them under LRS.
Under the LRS, all resident individuals, including minors, are allowed to freely remit up to $2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.
Individuals can avail of foreign exchange facility for the purposes within the limit of $2,50,000 only.
The scheme was introduced on February 4, 2004, with a limit of $25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.
[The Times of India]