Upto $2.50 lakh per annum can send abroad as per RBI’s liberalised remittance scheme (LRS)

According to Finance Ministry , Under the Central Bank of India RBIs liberalised remittance scheme (LRS) 2023, a resident can remit money abroad up to a maximum of $2.50 lakh per annum without the authorisation of the RBI. The Reserve Bank of India (RBI) has recently allowed credit card transactions in foreign currency under the liberalised remittance scheme. This move will enable individuals to make payments for overseas education, medical treatment, and travel expenses. The RBI has set a limit of $250,000 per financial year for such transactions.

The liberalised remittance scheme was introduced in 2004 to facilitate the remittance of funds from India to other countries. The scheme has been revised several times since then to make it more user-friendly. With the latest amendment, credit cardholders can now use their cards to make payments in foreign currency, subject to the prescribed limit.

This move is expected to benefit individuals who frequently travel abroad or have children studying overseas. It will also provide a boost to the tourism and healthcare sectors. However, it is important to note that credit card transactions in foreign currency attract higher charges than domestic transactions. Therefore, individuals should exercise caution while using their cards for such transactions and ensure that they have sufficient funds to cover the expenses.

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