Full formBanking & Finance
LRSstands forLiberalised Remittance Scheme
Full Form of LRS
What is LRS?
The Liberalised Remittance Scheme (LRS) is a policy framework introduced by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA). It allows resident individuals to remit up to a specified amount per financial year for any permissible current or capital account transaction or a combination thereof. The scheme covers expenses such as education, travel, medical treatment, gifts, donations, and investments abroad. In India, LRS is widely used by NRIs, students, and professionals for outward remittances. It came into effect from February 2004 and has been revised periodically; the current limit is USD 250,000 per individual per year. The scheme is critical for managing forex outflows while providing flexibility to residents. For competitive exams like RBI Grade B, NABARD, and SEBI, questions on LRS limits, permitted uses, and recent changes are common. Understanding LRS helps in grasping India's capital account liberalisation and foreign exchange regulations.
LRS का फुल फॉर्म
उदारीकृत प्रेषण योजना
Example
Under the LRS, an Indian student sent USD 30,000 to a US university for tuition fees without needing prior RBI approval.
LRS — frequently asked questions
What is the full form of LRS?
LRS stands for Liberalised Remittance Scheme, a RBI framework enabling resident Indians to send money abroad up to a prescribed limit.
What is the current limit for LRS in India?
As of 2025, the annual limit under LRS is USD 250,000 per individual per financial year for all permissible transactions.
Is LRS applicable for sending money to Nepal and Bhutan?
No, LRS does not apply to remittances to Nepal and Bhutan as those countries have separate treaty arrangements with India.