ANNOUNCEMENT 14 Aug 2013In August 2013, the government of India announced a change for the labour market access of foreign workers.
NUMBER OF INTERVENTIONS
On 14 August 2013, the Reserve Bank of India (RBI) reduced the total amount of remittances allowed to be sent abroad by individuals with residency in India under the Libearalized Remittance Scheme (LRS) from USD 200,000to USD 75,000 per financial year.
The LRS was introduced in 2004 allowing all resident individuals (not including corporates, firms, trusts etc.) to send remittances abroad up to a defined limit. The money could be used for any capital or current account transaction, including acquiring and holding immovable property or shares or any other asset, outside India without prior approval of the RBI.
This is the first time the RBI has reduced the limit for such remittances. Further, the scheme can no longer be used to purchase immovable property outside India.