MUMBAI: The Reserve Bank on Thursday tightened reporting norms for the Liberalised Remittance Scheme (LRS) under which a person can switch as much as $2,50,000 in another country in a yr.
The LRS transactions are lately authorized via banks in keeping with the declaration made via the remitter.
The tracking of adherence to the prohibit is confined to acquiring any such declaration without impartial verification, in the absence of a competent 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 stated in a notification.
Now banks will probably be required to upload daily transaction-wise knowledge undertaken via them under LRS.
Under the LRS, all resident folks, including minors, are allowed to freely remit as much as $2,50,000 per financial yr for any permissible current or capital account transaction or a mix of both.
Individuals can avail of foreign currencies facility for the needs inside the prohibit of $2,50,000 most effective.
The scheme was introduced on February four, 2004, with a prohibit of $25,000. The LRS prohibit has been revised in phases in keeping with prevailing macro and micro economic conditions.
The LRS transactions are lately authorized via banks in keeping with the declaration made via the remitter.
The tracking of adherence to the prohibit is confined to acquiring any such declaration without impartial verification, in the absence of a competent 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 stated in a notification.
Now banks will probably be required to upload daily transaction-wise knowledge undertaken via them under LRS.
Under the LRS, all resident folks, including minors, are allowed to freely remit as much as $2,50,000 per financial yr for any permissible current or capital account transaction or a mix of both.
Individuals can avail of foreign currencies facility for the needs inside the prohibit of $2,50,000 most effective.
The scheme was introduced on February four, 2004, with a prohibit of $25,000. The LRS prohibit has been revised in phases in keeping with prevailing macro and micro economic conditions.
RBI tightens monitoring of outward remittances
![RBI tightens monitoring of outward remittances]()
Reviewed by Kailash
on
April 13, 2018
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