Liberalised Remittance Scheme (LRS)

Subject – Economy

Context – Outward remittances under LRS rose 31%

Concept –

Outward remittances under the Liberalised Remittance Scheme (LRS) for individuals rose about 31 per cent year-on-year (yoy) in July 2021 to $1.31 billion, mainly on the back of increase in expenses towards studies and travel, according to Reserve Bank of India (RBI) data.
The remittances were $995.16 million in the year ago period.
This comes even as the global economy seems to be gradually recovering from the unprecedented disruption caused by the Covid-19 pandemic.
As per RBI norms, all resident individuals, including minors, are allowed to freely remit up to $250,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
The Scheme was introduced on February 4, 2004, with a limit of $25,000 and revised in stages.

To know more about LRS, please click here.