Liberalised Remittance Scheme (LRS) for resident individuals - increase in the limit from USD 125,000 to USD 250,000 and rationalisation of current account transactions - Remittance facilities for persons other than individuals

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.... II. Remittance facilities for persons other than individuals Attention of Authorised Persons is invited to the A.P.(DIR Series) Circular No. 138 dated June 3, 2014 regarding the Liberalised Remittance Scheme (LRS) for resident individuals and the existing guidelines issued under the Foreign Exchange Management (Current Account Transactions) Rules, 2000. On a review, it has been decided to make the following changes for further liberalization and rationalization on the existing guidelines. Limit and Facilities under LRS 2. AD banks may now allow remittances by a resident individual up to USD 250,000 per financial year for any permitted current or capital account transaction or a combination of both. If an individual has already r....

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.... by resident individuals to NRI relatives as defined in the Companies Act, 2013 shall also be subsumed under the LRS limit. The Notification dated May 26, 2015 containing the revised Schedule III is given in Annex 1. 4. As hitherto, the Scheme cannot be made use for making remittances for any prohibited or illegal activities such as margin trading, lottery, etc. 5. Remittance Procedure Requirements to be complied with by the remitter 5.1 The resident individual seeking to make the remittances should furnish an application cum declaration in the format indicated in Annex 2 to the AD/ full fledged money changer (FFMC) concerned regarding the purpose of the remittances and declaration to the effect that the funds belong to the r....

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....ive countries and territories by the Financial Action Task Force (FATF) from time to time and communicated by the Reserve Bank of India to all concerned. 6. Reporting of the transactions Authorised Dealers may arrange to furnish on a monthly basis information on the number of applicants and total amount remitted under LRS to the Chief General Manager, External Payment Division, Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai - 400001 through Online Return Filing System (ORFS) only. 7. Facilities for persons other than individuals 7.1 As provided in Para 2 of Schedule III provided in Annex 1, persons other than individuals can make remittances for i.Donations for educational institutions; ....

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....Scheme of USD 250,000 (To be completed by the applicant) I. Details of the applicant a. Name ................................ b. Address.............................. c. Account No.......................... d. PAN No............................... II. Details of the foreign exchange required 1. Amount (Specify currency).................................... 2. Purpose .......................................................... III. Sources of funds: ........................................ IV. Nature of instrument Draft............................. Direct remittance............ Others V. Details of the Beneficiary 1. Name .......................... 2. Address ........................ 3. Cou....