LRS Limit Raised to USD 125,000 per Financial Year (Effective June 3, 2014)
No longer current — replaced by A.P. (DIR Series) Circular No. 138 - Liberalised Remittance Scheme (LRS) for resident individuals - Increase i
Source: Reserve Bank of India · RBI/2013-14/624 · issued 03 Jun 2014 · ~1 min read
Quick answerRBI has increased the Liberalised Remittance Scheme limit for resident individuals from USD 75,000 to USD 125,000 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.
What changed
The existing LRS limit of USD 75,000 per financial year has been enhanced to USD 125,000 with immediate effect. This change was announced in the Second Bi-Monthly Monetary Statement for 2014-15. All other terms and conditions of the scheme remain unchanged.
What it means for you
Banks can now allow resident individuals to remit up to USD 125,000 per financial year under LRS for any permitted current or capital account transaction. This gives customers greater flexibility for overseas investments, education, travel, and medical expenses. Banks must ensure remittances are not used for prohibited activities like margin trading or lottery.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal systems and LRS processing limits to reflect the new USD 125,000 per financial year cap.
Inform all branches and customer-facing staff about the enhanced limit and effective date.
Communicate the change to customers through notices, website updates, and direct outreach.
Continue to verify that remittances under LRS comply with all existing terms and conditions.
Who it affects
AD Category-I banks, Resident individual customers using LRS, Bank compliance and operations teams
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 09:38 IST
Superseded by — A.P. (DIR Series) Circular No. 138 - Liberalised Remittance Scheme (LRS) for resident individuals - Increase i
Status change: superseded03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
When does the new LRS limit of USD 125,000 take effect?
The enhanced limit is effective immediately from the date of the circular, June 3, 2014.
Can remittances be made for any purpose under the new limit?
Remittances are allowed for any permitted current or capital account transaction, but not for prohibited activities like margin trading or lottery.
Are there any other changes to the LRS scheme besides the limit?
No, all other terms and conditions of the scheme remain unchanged as per the circular.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byA.P. (DIR Series) Circular No. 138 - Liberalised Remittance Scheme (LRS) for res
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/624
A.P. (DIR Series) Circular No.138
June 3, 2014
To
All Category – I Authorised Dealer Banks
Madam/Sir,
Liberalised Remittance Scheme (LRS) for resident individuals-Increase in the limit from USD 75,000 to USD 125,000
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the A.P.(DIR Series) Circular No 24 dated August 14, 2013 and the subsequent clarifications issued vide A.P. (DIR Series) Circular No 32 dated September 04, 2013 regarding the Liberalised Remittance Scheme (LRS) for Resident Individuals (the Scheme).
2. As indicated in paragraph 13 of the Second Bi-Monthly Monetary Statement, 2014-15, it has now been decided to enhance the existing limit of USD 75,000 per financial year (April-March) to USD 125,000 with immediate effect. Accordingly, AD Category –I banks may now allow remittances up to USD 125,000 per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both.
3. The Scheme should not be used for making remittances for any prohibited or illegal activities such as margin trading, lottery, etc.
4. All other terms and conditions shall remain unchanged.
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 are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(C D Srinivasan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/624 · issued 03 Jun 2014. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=8918&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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