Facts about LRS: All you need to know about the same
The Liberalised Remittance Scheme (LRS) is a scheme introduced by the Reserve Bank of India (RBI) that allows Indian residents to freely remit money abroad. The current version of the LRS, which was updated in 2020, allows Indian residents to remit up to US$250,000 per financial year for various purposes such as education, business, travel, and medical treatment.
Here are some key facts and figures about the LRS:
The LRS was first introduced in 2004, with a limit of US$25,000 per financial year. This limit was later increased to US$50,000 in 2007, US$200,000 in 2013, and finally to US$250,000 in 2020 in platforms like LRS.
According to data from the RBI, the total value of remittances made under the LRS in the financial year 2020-2021 was US$8.4 billion. This represents a significant increase from the previous financial year when the total value of remittances was US$7.5 billion.
The most popular destination for remittances made under the LRS is the United States, followed by the United Arab Emirates, Singapore, and the United Kingdom using the Vested platforms.
One of the main purposes of remittances made under the LRS is education, accounting for around 30% of the total remittances in the financial year 2020-2021. Other popular purposes include business (28%), travel (26%), and medical treatment (16%) using the platform of LRS.
The LRS also allows Indian residents to invest in foreign companies, properties, and other assets. According to the RBI, the total value of such investments made under the LRS in the financial year 2020-2021 was US$3.9 billion.
The LRS also facilitates trade and commerce between India and other countries. Indian businesses can use the scheme to remit money for imports and exports, and to make payments for services rendered by foreign companies. According to the RBI, the total value of such remittances made under the LRS in the financial year 2020-2021 was US$2.1 billion with the help of platforms like Vested.
There are certain restrictions and regulations that apply to the LRS. Money remitted under the scheme cannot be used for illegal activities or for the purchase of lottery tickets. Additionally, the scheme is subject to change and revision by the RBI with the help of the Vested platform. You just have to go smooth and straight.
In conclusion, the Liberalised Remittance Scheme (LRS) is a scheme that allows Indian residents to freely remit money abroad, with a current limit of US$250,000 per financial year. According to data from the RBI, the total value of remittances made under the LRS has been steadily increasing, with education, business, travel and medical treatment being the most popular purpose. The LRS also allows Indian residents to invest in foreign companies, properties, and other assets and facilitates trade and commerce between India and other countries. The LRS also has some restrictions and regulations and is subject to change and revision by the RBI using the idea of LRS.