The Reserve Bank of India (RBI) on tuesday doubled the foreign exchange remittance limit upto $250,000 per person a year. Means Indians spend upto this much this much amount abroad without permission RBI said during its bimonthly monetary policy review. Now they can buy property, hold shares or debt instruments, or any other assets or purchase gifts abroad up to limit of $250,000 (Rs 1.5 crore) per person per year. This limit was modified under the liberalised remittance scheme (LRS). Previously the limit was reduced to $75,000 (Rs 45 lakh) in 2013 following rupee depriciation. Later it was increased to $125000 (Rs 75 lakh) in 2014. RBI governor Raghuram Rajan today that “the lower inflation has helped keep the rupee stable and macro-economic environment of the country has also improved. The current account deficit is likely to be 1.3 per cent this year and perhaps could be even lower next year”.
About Foreign exchange remittance
Foreign exchange remittance comes under the Liberalised Remittance Scheme (LRS). All resident individuals, including minors, are allowed to freely remit (spend) up to the limit set by govt per financial year.
An individual, who has availed of a loan abroad while as a non-resident Indian repay the same on return to India, under this Scheme as a resident.