LRS Limit Doubled to USD 200,000 per Financial Year
Current · Source: Reserve Bank of India · RBI/2007-08/146 · issued 26 Sep 2007 · ~1 min read
Quick answerRBI has doubled the Liberalised Remittance Scheme limit for resident individuals from USD 100,000 to USD 200,000 per financial year, effective immediately. AD Category-I banks can now process remittances up to the new limit for permitted current or capital account transactions.
The rule, in the simplest words
The RBI has doubled the Liberalised Remittance Scheme limit for resident individuals from USD 100,000 to USD 200,000 per financial year.
AD Category-I banks can now process remittances up to USD 200,000 for permitted current or capital account transactions.
All other terms and conditions of the Liberalised Remittance Scheme remain unchanged.
How it plays out — a real example
A forex & trade-finance officer in Indore can now process higher outward remittances for a resident individual's investment in a foreign gold ETF, up to USD 200,000 per year, without additional approvals, simplifying compliance and expanding customer options.
What changed
The per-financial-year remittance limit under the Liberalised Remittance Scheme for resident individuals has been increased from USD 100,000 to USD 200,000. This change takes effect immediately, and all other terms and conditions of the scheme remain unchanged.
What it means for you
Banks can now process higher outward remittances for resident individuals without additional approvals, up to USD 200,000 per year. This simplifies compliance and expands customer options for investments, education, travel, and other permitted purposes. Lenders should update their internal systems and customer advisories to reflect the new limit.
What you must do
Update internal remittance processing systems to allow up to USD 200,000 per financial year under LRS.
Inform branch staff and customer-facing teams about the enhanced limit and effective date.
Communicate the change to customers through notices, website updates, and direct outreach.
Ensure all other LRS terms and conditions from earlier circulars remain in force.
Who it affects
AD Category-I banks, Resident individual customers using LRS, Compliance and operations teams handling outward remittances
❓ Common questions
Does this circular change any other conditions of the LRS?
No. All other terms and conditions from earlier circulars (February 2004, December 2006, and May 2007) remain unchanged.
When does the new limit become effective?
The enhanced limit of USD 200,000 per financial year is effective immediately from the date of the circular, September 26, 2007.
Do we need to wait for FEMA regulation amendments to implement this?
No. The circular states that amendments to FEMA regulations are being notified separately, but banks can start processing remittances up to the new limit immediately.
📜 Read the original circular — full text as issued by RBI
RBI/2007-08/146
A. P. (DIR Series) Circular No.9
September 26, 2007
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Liberalised Remittance Scheme for Resident Individuals- Enhancement of limit from USD 100,000 to USD 200,000
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P. (DIR Series) Circular No. 51 dated May 8, 2007 on the Liberalised Remittance Scheme for Resident Individuals (the Scheme).
2. With a view to further liberalize the Scheme it has been decided, in consultation with the Government of India, to enhance the existing limit of USD 100,000 per financial year to USD 200,000 per financial year (April - March) with immediate effect. Accordingly, AD Category – I banks may now allow remittance up to USD 200,000, per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both.
3. All other terms and conditions mentioned in A. P. (DIR Series) Circular No. 64 dated February 4, 2004 , A. P. (DIR Series) Circular No. 24 dated December 20, 2006 and A. P. (DIR Series) Circular No. 51 dated May 8, 2007 shall remain unchanged.
4. Necessary amendments to Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000 (Notification No. FEMA 1/2000-RB dated 3rd May 2000 ) are being notified separately.
5. AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6. The directions contained in this Circular have been issued under Section 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
Salim Gangadharan
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-08/146 · issued 26 Sep 2007. The plain-English explanation above is BankPulse’s own independent summary.
Inform branch staff and customer-facing teams about the enhanced limit and effective date.
💻 IT / Systems
Update internal remittance processing systems to allow up to USD 200,000 per financial year under LRS.
📜 Compliance
Communicate the change to customers through notices, website updates, and direct outreach.
Ensure all other LRS terms and conditions from earlier circulars remain in force.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (AD Category-I banks, Resident individual customers using LRS, Compliance and operations teams handling outward remittances), your first concrete step on “LRS Limit Doubled to USD 200,000 per Financial Year” is: “Update internal remittance processing systems to allow up to USD 200,000 per financial year under LRS.” (RBI issued this 26 Sep 2007).
Circular: RBI/2007-08/146 -- LRS Limit Doubled to USD 200,000 per Financial Year
Issued: 26 Sep 2007
Action required: Update internal remittance processing systems to allow up to USD 200,000 per financial year under LRS.
Action required: Inform branch staff and customer-facing teams about the enhanced limit and effective date.
Action required: Communicate the change to customers through notices, website updates, and direct outreach.
Action required: Ensure all other LRS terms and conditions from earlier circulars remain in force.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3831&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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