With the advent of Globalisation, more and more Indians have now started settling abroad. They are not only settling abroad but have also started sending money from India to US and other Countries. As a step towards further simplification and liberalisation of the Foreign Exchange facilities available to resident Indians, RBI had announced the Liberalised Remittance Scheme in February 2004.
The Maximum Limit of Sending money from India to US & Other Countries was earlier fixed at $200000 per year. Due to weakening of the rupee, this limit has now been reduced to $ 75000 p.a.
The facility of Liberalised Economic Scheme is extended to all Resident Individuals under which they may freely remit up to USD 75000 per financial year for any permissible current or capital account transaction or a combination of both. There is no restriction on the frequency or the no. of times money is sent abroad from India and only the Total Limit is fixed at $75,000.
The Remittance can be made in any currency but shall not be more than the equivalent of $75,000. Remittance under this Scheme can be made to any country except Bhutan, Nepal, Mauritius or Pakistan.
The facility extended under this Scheme is in addition to the facility extended for private travel, business travel, studies, medical treatment etc as described in Schedule III of Foreign Exchange Management Rules 2000
To avail this Scheme, the Resident Indian will have to designate a branch of an Authorised Dealer through which all the remittances under the Scheme will be made. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance.
He has to furnish an application-cum-declaration in the specified format regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme.
Examples of Transactions permitted under this Scheme
The above transactions are a few illustrative examples of the transactions permitted. Almost all transactions are permitted except those stated below: -