Important RBI guidelines under LRS

Liberalised Remittance Scheme (LRS)   Dear Customer Greetings from ICICI Bank. In terms of the extant Reserve Bank of India (RBI) regulations, under the Liberalised Remittance Scheme (LRS), Authorised Dealers may freely allow remittances by resident individuals up to USD 2,50,000 per Financial Year (April-March) for any permitted current or capital account transaction or a combination of both. Current Account transactions include: The limit of USD 2,50,000 per Financial Year (FY) under the LRS includes/ subsumes remittances for Current Account transactions (i.e., private visit, gift/ donation, going overseas for employment, emigration, maintenance of close relatives overseas, business trip(s), medical treatment overseas, studies overseas). Capital Account transactions include:   The permissible Capital Account transactions by an individual under LRS are:   i. Opening of Foreign Currency Account overseas with a bank. ii. Purchase of property overseas.     iii. Making investments overseas — acquisition and holding shares of both listed and unlisted overseas company or debt instruments, acquisition of qualification shares of an overseas company for holding the post of Director, acquisition of shares of a foreign company towards professional services rendered or in lieu of a Director’s remuneration, investment in units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes.     iv. Setting up Wholly Owned Subsidiaries and Joint Ventures outside India for bona fide business, subject to the terms and conditions stipulated by the RBI     v. Extending loans, including loans in INR to Non-resident Indians (NRIs) who are relatives as defined in the Companies Act, 2013.   Further, as per the RBI circular on Liberalised Remittance Scheme — Harmonisation of Data and Definitions dated June 19, 2018, furnishing of Permanent Account Number (PAN) shall now be mandatory for making all remittances under LRS (including usage of international Debit Cards for LRS transactions). In case the LRS limit of USD 2,50,000 is breached by individuals, the Bank may not extend any further foreign exchange facility (outward remittances/ foreign currency/ Travel Card/ international Debit Card). The action may include blocking of Travel Card and international Debit Card. This communication was to keep you updated with RBI policy. To know more, click here . Looking forward to more opportunities to be of service to you. Sincerely, ICICI Bank Limited Terms and Conditions of ICICI Bank apply.