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
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.