As of today, the Reserve Bank of India has tightened it regulation norms on Liberalised Remittance Scheme (LRS) which allows an individual to transfer up to $250,000 abroad in a span of one year.
Also Read: What is Liberalised Remittance Scheme?
Information on these transactions were based on the declaration made by the remitter up till now. RBI could not monitor and verify the actual transfer as it was not a reliable source of information.
It is therefore now decided that AD (Authorised Dealers) banks will have to upload information on LRS transactions made by them on a daily basis.
In a notification, RBI said, "In order to improve monitoring and also to ensure compliance with the LRS limits, it has been decided to put in place a daily reporting system by AD banks of transactions undertaken by individuals under LRS, which will be accessible to all the other ADs."
The Liberalised Remittance Scheme allows residents of India including minors to transfer $250,000 each financial year in a current or capital account transaction. The scheme was introduced in 2004 and the limits have been revised since then.