For Quick Alerts
For Daily Alerts

PAN Now Mandatory to Send Money Abroad


In order to closely monitor money remitted under the liberalised remittance scheme (LRS), the Reserve Bank of India (RBI) has made PAN mandatory for the all users, as per its statement.

This means that you will not be able to send money to your kids or relatives abroad, buy property or shares in other countries without RBI's knowledge and this will not allow you to exceed annual limits imposed on it. As per the earlier rules, one did not have to give PAN details for transactions less than $25,000.

PAN Now Mandatory to Send Money Abroad

The LRS was opened to residents in India in 2004 to remit $250,000 overseas per financial year for a permissible set of current or capital account transactions. These are permitted for overseas education, travel, medical treatment and also to purchase shares and property or make donations. One can also open, maintain and hold foreign currency accounts with a foreign bank to make transaction.

However, individuals are not allowed to trade or place speculative bets in foreign exchange markets, or even purchase Foreign Currency Convertible Bonds issued by Indian companies abroad.

One also cannot send money to 'non-cooperative' countries or those with terrorist risk as identified by the Financial Action Task Force.

The scheme allows the Indian government to watch foreign exchange movements in and out of the country.

Read more about: lrs pan
Story first published: Thursday, June 7, 2018, 15:44 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more