Remittance plays a huge role in Indian economy as India is the highest receiver of remittance. In 2020, India received USD 83 Dollar as remittance. Therefore, the maximum amount of money that can be remitted from India is USD 2,50,000.
Remittance from India to abroad are made on a regular basis and Reserve bank of India (RBI) has a particular set of rules for the same. It is essential for the individuals who transfer money to know all the rules laid on how much money can be transferred, etc.
Amount of money that can be transferred:
Person residents’ foreign exchange laws are drafted under FEMA- Foreign Exchange Management Act in the Liberalized Remittance Scheme (LRS).
It is essential for the individual who is transferring money to have a PAN- Permanent Account Number card. This would be to guarantee that a citizen does not exceed the LRS cap of USD 2,50,000 in a fiscal term. This cap can be used once or several times in a single transaction.
This scheme does not concern to any business firms, corporations, trusts, lottery, etc.
The two main requirements for making transfers are:
- KYC documents
- Reason for making the transaction.