RBI Tightens
Monitoring of Liberalised Remittance Scheme (LRS) for Overseas Money
Transferring
The Reserve Bank
today tightened reporting norms for the Liberalised Remittance Scheme (LRS)
under which an individual can transfer up to USD 2,50,000 abroad in a year.
Declaration
made by the Remitter
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.
To Upload Daily Transaction-Wise
Information
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 USD 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 USD
2,50,000 only.
The scheme was
introduced on February 4, 2004, with a limit of USD 25,000.
The LRS limit has
been revised in stages consistent with prevailing .
Courtesy - Indian Express
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