RBI Updates: RBI tightens remittance norms

RBI, by issuing Circular RBI/2017-18/204 A.P. (DIR Series) Circular No. 32 on 19th June, 2018, tightens the remittance norms under Liberalized Remittance Scheme.

The RBI has tightened norms for Liberalised Remittance Scheme (LRS) by making quoting of permanent account number (PAN) mandatory even for transactions below USD 25,000.

Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.

Individuals can avail of foreign exchange facility for the purposes within the limit of USD 2,50,000 only.

Further, in the context of remittances allowed under LRS for maintenance of close relatives, it has been decided, in consultation with government, to align the definition of 'relative' with the definition given in Companies Act, 2013 instead of Companies Act, 1956, it added.

Copy of such Circular can be accessed below.

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