What are the remittance charges?

Remittance charges may differ based on the country you are transferring to or from India. The remittance fees charged by a financial institution usually includes intermediaries’ charges along with the exchange rate margin. DBS Treasures charges zero service charges for inward and outward remittances.

Which transaction is a prohibited transaction under liberalized remittance scheme?

Types of remittances prohibited under LRS Remittance from India for margins or margin calls to overseas exchanges/overseas counterparty. Remittances for purchasing Foreign Currency Convertible Bond issued by Indian companies in the overseas secondary market. Remittance for trading in foreign exchange abroad.

What is Forex transactions under LRS?

Under LRS, Indian Residents are allowed to remit prescribed amount (Per FY) of forex outside India to anyone for all permissible capital account transactions, without any prior approval of RBI. They just need to contact an Authorised Person/Dealer for this (i.e. Full Fledged Money Changer, Banks).

What are capital account transactions under LRS?

Permissible capital account transactions Capital account transactions by an individual under LRS are permitted for five types of transactions, namely: a) Opening of foreign currency account abroad with a bank; b) Purchase of property abroad; c) Making investments abroad; d) Setting up Wholly owned subsidiaries and …

What is liberalized remittance scheme?

Liberalised Remittance Scheme is a scheme introduced by RBI as liberalisation measure to facilitate Resident Individuals (RI) to freely remit funds upto USD 2,50,000/- outside India in a financial year (April to March) for any permissible current or capital account transaction or a combination of both.

How much money can be sent abroad from India?

Under the Foreign Exchange Management Act (FEMA) provisions, an Indian citizen can remit up to $250,000 (around ₹1.86 crore at present) in a financial year for specified transactions.

What is capital account transaction?

Capital Account Transactions According to Section 2(e) of FEMA 1999, Capital Account transaction means a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or alters the assets or liabilities in India of persons resident outside India.

Under which scheme can NRO account be debited for remittance of funds abroad?

Liberalised Remittance Scheme
Rupee gift/ loan made by a resident to a NRI/ PIO relative within the limits prescribed under the Liberalised Remittance Scheme may be credited to the latter’s NRO account. Permissible debits are local disbursements, remittance outside India, transfer to other NRE/ FCNR(B) accounts and investments in India.