RBI hikes foreign exchange remittance to $125,000 from $75,000

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RBI hikes foreign exchange remittance to $125,000 from $75,000
The Reserve Bank of India (RBI) today hiked the foreign exchange remittance allowed to $125,000 from $75,000 earlier.

"As a prudential measure, the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) had been reduced to US$ 75,000 last year. In view of the recent stability in the foreign exchange market, it has been decided to enhance the eligible limit to US$ 125,000 without end use restrictions except for prohibited foreign exchange transactions such as margin trading, lottery and the like. Operating guidelines will be issued separately," the country's central bank stated.

It may be recalled that the RBI had reduced the foreign exchange remittance allowed last year, to conserve foreign exchange as the rupee had slumped against the dollar last year and had hit a historic low of 68.61 against the dollar.

However, there has been a significant improvement in the country's current account deficit and the rupee has now recovered to the 59 levels. This may have prompted the RBI to permit more remittance of foreign exchange.


Read more about: rbi, foreign exchange remittance
Story first published: Tuesday, June 3, 2014, 13:07 [IST]
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