Liberalised Remittance Scheme (LRS)

The Liberalised Remittance Scheme (LRS) was established by Reserve Bank of India and it permits citizens of India to transfer funds abroad.




What is Liberalised Remittance Scheme (LRS)

Under the Liberalised Remittance Scheme of RBI, all resident Indian individuals (including minors), are allowed to freely remit up to USD 2,50,000 in each financial year (April – March) for any permissible current or capital account transaction or a combination of both.

When the scheme was introduced in the year 2004, that time this limit was of USD 25,000. With time, the scheme has been liberalised to allow more transfer of funds.


For whom LRS is not applicable?

The Liberalised Remittance Scheme (LRS) is not available to corporates, partnership firms, HUF, Trusts etc. It is available for sole proprietor.



Important Points regarding Liberalised Remittance Scheme (LRS)

You cannot remit money under LRS to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”.

1)It is mandatory under the Liberalised Remittance Scheme (LRS) to have Permanent Account Number (PAN) for sending outward remittances.

2)Maximum Frequency of Remittance: There are no restrictions on the frequency of remittances under LRS. However, the sum total of all remittance should not be more than USD 2,50,000 in a Financial Year.

3)The remittances can be made in any freely convertible foreign currency.