What is LRS?

Modified on Thu, 05 Jan 2023 at 05:49 PM

Instituted by the RBI, the Liberalized Remittance Scheme or LRS is a set of policies that stipulates the maximum amount and purposes of remittance. Under the LRS, an individual can annually invest up to USD $250,000 in any country, without seeking approval from the RBI. To monitor the remittance of individuals, remitters are required to fill out and submit a Form A2, which is provided by RBI-appointed Authorized Dealers. The form captures the remittance amount, the purpose, and the individual's PAN number. Once the form is received, the Authorized Dealer will verify the information and process the remittance. The authorized dealer in this case is the bank which has been chosen for remittance.

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