ANNOUNCEMENT 03 Jun 2014In June 2014, the government of India announced a rule change for commercial cross-border financial flows.
NUMBER OF INTERVENTIONS
On 3 June 2014, the Reserve Bank of India (RBI) increased the total amount of remittances allowed to be sent abroad by individuals with residency in India under the Libearalized Remittance Scheme (LRS) from USD 75,000to USD 125,000 per financial year. The limit was last reduced on 14 August 2013 from USD 200,000 to USD 75,000 (see related measure).
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.