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All about the Liberalised Remittance Scheme (LRS)

Residents of India can use the LRS to remit up to USD250,000 per financial year.

Liberalised Remittance Scheme

The Liberalised Remittance Scheme (LRS) is part of the Foreign Exchange Management Act (FEMA) 1999 which lays down the guidelines for outward remittance from India. Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD250,000 per financial year (April – March). This can be for any permissible current or capital account transaction, or a combination of both.

Easy ways to remit under LRS

A few key things to keep in mind while remitting money abroad

  • If you are a resident individual, you and your family (including minors) can remit up to USD250,000 per individual, per financial year.
  • You cannot remit funds abroad for prohibited purposes like buying lotteries or banned magazines, amongst others.
  • There is no restriction on the frequency or number of transactions during a financial year. However, the total amount of foreign exchange remitted through all sources in India under LRS during the current FY should be within the LRS limit as specified by the RBI.

 

For further information, you can refer to our LRS FAQs.

Permitted reasons for remittance under LRS

The LRS includes a comprehensive list of reasons for which you can remit funds. Some of these are listed below:

  • Travel and tourism to foreign countries (except Nepal and Bhutan)
  • Going abroad for employment
  • Emigration
  • Maintenance of close relatives living abroad
  • Expenses in connection with medical treatment abroad
  • Paying for education abroad
  • Opening a foreign currency account abroad with a bank
  • Purchase of property abroad
  • Making foreign investments in equity shares, debt instruments, mutual funds, venture capital funds, etc.

Make LRS remittance through HSBC

If you're an HSBC customer and resident of India, you can conveniently place a request for an LRS transfer through:

HSBC Premier customers can reach out to their Relationship Manager for any assistance.

Download the HSBC Liberalized Remittance Scheme (LRS) application here.

 

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