What changed
RBI shifted the reporting frequency for the Liberalised Remittance Scheme from quarterly to monthly, effective April 2008. Banks must now submit a statement with application counts and remittance amounts in USD, broken down by purpose, by the 5th of each subsequent month.
What it means for you
This change increases the reporting burden on AD Category-I banks, requiring more frequent data compilation and submission. It gives RBI tighter oversight of outflows under the scheme, which may lead to quicker detection of trends or anomalies. Banks need to adjust their internal processes to ensure timely monthly submissions.
What you must do
- Update internal reporting systems to generate monthly LRS data instead of quarterly.
- Ensure the monthly statement reaches RBI's Foreign Exchange Department by the 5th of the following month.
- Train staff on the new format, which includes purpose-wise breakdowns like deposits, property purchases, and investments.
- Verify that all other terms from earlier circulars (2004, 2006, 2007) remain unchanged and are still followed.
Who it affects
AD Category-I banks, Foreign exchange departments of banks, Compliance teams handling LRS reporting
What is the new deadline for LRS reporting?
Reports must reach RBI's Chief General Manager-in-Charge, Foreign Exchange Department, Central Office, Mumbai, on or before the 5th of the month following the reporting month.
Does this circular change any other LRS rules?
No. All other terms and conditions from earlier circulars (February 2004, December 2006, May 2007, and September 2007) remain unchanged.