There are also some countries and organisations you’re not legally allowed to remit money to¹.Additionally, you can’t remit money which originates from certain sources including⁵.The introduction of the LRS has made it far easier for Indian residents to remit money abroad.

You’ll have to complete some paperwork to make your remittance, including specifying who you’re sending money to, and why⁴.
Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the scheme.However, LRS restricts buying and selling of foreign exchange abroad, or purchase of lottery tickets or sweep stakes, proscribed magazines and so on, or any items that are restricted under Schedule II of You also can’t make remittances directly or indirectly to countries identified by the Financial Action Task Force as “non co-operative countries and territories".Log in to our website to save your bookmarks. The Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) allows resident individuals to remit a certain amount of money during a financial year to … Remittance Scheme (LRS) in FETERS and -line Return Filing System (On ORFS), it has been decided that transactions relating to LRS may be reported under respective FETERS purpose codes (e.g. PayPal is handy and relatively good value in Australia but the costs can ramp up when the transaction crosses borders.Transferring money from one account to another isn’t too difficult - although you’ll want to make sure you’ve picked the right service for your needs.If you need to send money abroad, finding the right provider to move your payment quickly and safely can seem tricky. LRS is the lowest-cost redundancy option and offers the least durability compared to other options.

Hence under the LRS, individuals are allowed to spend money in foreign countries for specific purposes like education, tourism, asset purchase etc. Read on.
In layman's terms, this means that the RBI controls and limits the flow of money out of India because excessive outflow of rupees would destabilise the local currency markets and damage the economy²Now, onto the Liberalized Remittance Scheme (LRS).

If you’re a resident then the limits set out above apply - but the law is different in regards to non-residents¹.The LRS applies to resident individuals in India only.As a non-resident Indian (NRI), you can hold a bank account in India which will fall into one of the following categories⁶:The remittance rules applied to you will vary depending on your account type. Here's a guide that covers all the basics. The purpose codes for different remittance types are detailed on the back of the form you’ll need to complete to comply with the remittance rules. II d. Purpose of Remittance with Remittance Scheme and Purpose Code (Please tick (√) against the purpose code in Annexure – I) Whether under LRS (Yes/No) Purpose Code Purpose Description II e. Name of the country providing ultimate services: (in case payment is for import of services for below Purpose Groups)_____ You can find the complete list of purpose codes in the below table. There can be an inward remittance or an outward remittance. LRS governs the remittances made from India to other countries. In India, the Foreign Exchange Management Act (FEMA) is used to control the flow of money in and out of the country - and the Liberalised Remittance Scheme (LRS) is specifically used to manage transfers in which currency moves from India to other countries¹. As the rules are relatively complex, it’s well worth taking professional advice if you need to remit a large amount of money out of India.If you’re new to remittances, you might want to learn more about the process of moving money in and out of India.

The rules around sending and receiving money from overseas vary all around the world.