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I keep getting questions on RBI’s LRS Scheme & is Liberalised Remittance Scheme is available for NRI.

So in this post, I have touched What is LRS Scheme? is its purpose, how much money can be remitted, requirements & a few other important questions.

What is LRS Scheme?

The Liberalised Remittance Scheme (LRS) is a facility provided by the RBI that allows resident Indians to remit a certain amount of money during a financial year to another country. The amount can be used for investment and expenditure.

Liberalised Remittance Scheme

Read About – How can NRIs transfer Funds to India from Overseas.

5 Facts about LRS Scheme for Indian investors Should Know

1. Liberalised Remittance Scheme is available for NRI

2. Limits

3. Current account transactions

4. Capital account transactions

5. Are there any restrictions on the usage of the money remitted

1. Liberalised remittance scheme for NRI?

Can NRIs use this scheme via their bank accounts in India?

The LRS scheme strictly applies to Indian residents only. NRIs will not have any resident savings accounts. They will have NRE, NRO or FCNR accounts only. They can remit amounts abroad from NRO, NRE and FCNR accounts subject to rules and requisite documentation –

  • They can remit up to US$ 10,00,000 from an NRO account
  • There are no restrictions on remittance from an NRE or FCNR account

The Liberalised Remittance Scheme has helped Indian residents manage monetary transactions abroad that have made their lives easier. The money can be used for medical expenses, education, and other purposes. It is also a great way to diversify your investment portfolio as you can invest outside India as well.

When was liberalised remittance scheme for NRIs introduced?

LRS India was introduced in 2004 & at that time limit was just $25000. The limit is substantially increased over a period of time.

Read – NRI Checklist

2. How much money can be remitted and what is the allowed frequency of transactions?

Resident individuals can remit up to $250,000 per financial year. This can be done in any number of transactions as long as the total amount does not exceed the limit. They can use the amount for both current account and capital account transactions.

What currency can I use?

Any freely convertible foreign currency can be used in this scheme.

lrs scheme for nri

Read – Best time to send money to India

3. Current account transactions

  • Private visits to any country (excluding Nepal and Bhutan)
  • Gift/Donation Include rupee gift to  (NRI)/ (PIO), who is a close relative
  • Emigration
  • Overseas Business trip
  • Medical treatment outside India
  • Purchasing of objects of art
  • Maintenance of close relatives outside India
  • Going outside India for employment
  • Pursuing studies outside India
  • Any other current account transaction which is not prohibited

4. Capital account transactions

  • Purchase of property outside India
  • Investment in shares, securities, mutual funds, etc. outside India
  • Open account, maintain and hold foreign currency accounts with a bank outside India
  • Extending loans including loans in Indian Rupees to Non-resident Indian /PIO who are close relatives, subject to stipulated terms and conditions.

5. Are there any restrictions on the usage of the money remitted?

Some transactions are not allowed under the Liberalised Remittance Scheme For NRI –

  • Buying and selling of foreign exchange abroad
  • Purchase of lottery tickets or sweepstakes
  • A gift from one Indian resident to another Indian resident, in foreign currency to be credited in the account held abroad under LRS
  • Some types of income are not allowed to be transferred abroad, and there are restrictions on remitting money to certain countries.
  • The LRS scheme is not available to the Association of Persons, Body of Individuals, Company, HUF, LLP, Partnership Firm, Society, and Trust.

Must check- How to Apply For NRI Credit Cards in India

What purposes can the money remitted be used for?

The money can be used for different purposes such as –

  • Education abroad
  • Gifts
  • Donations
  • Maintenance expenses of close relatives abroad
  • Investment in equity, debt, or property abroad that follows prescribed regulations.
  • Travel for business, conference or training
  • Travel and expenditure for medical reasons for self
  • Travel as a companion for a person who is going abroad for medical treatment
  • Emigration purposes
  • Provide a loan to a close relative who is an NRI as long as no interest is charged, and the loan is at least for a year.

“Under LRS Indian Resident Parents can gift money to their kids who are NRI/OCI/PIO.” wiseNRI

Should the resident individuals repatriate the accrued interest/dividend on deposits/investments abroad, over and above the principal amount?

The investor can retain and reinvest the income earned from portfolio investments made under the LRS scheme.

What are the requirements to make a remittance under the LRS?

The individual will require PAN and KYC completed. The individual should have maintained an account with the bank through which the remittances will take place for at least a year. The bank should conduct the necessary due diligence for the opening, maintenance, and operation of the account.

Hope this article cleared your doubts regarding liberalised remittance scheme for NRI. If you still have any questions – add them to the comment section.

Published on February 23, 2022

Hemant Beniwal


Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning". 

  • We are OCIs (American Citizen) staying in India for 10 years .. Can we use LRS to transfer money to US .. we do not have NRO account as we are residing in India

  • Hi , I am a NRI residing in USA and wanted to know if I can accept 100000 USD as gift money to my USA bank account from outside of USA. What are the tax implications on this exchange ?

  • Hi, I am living in UAE. Currently I have personal loan in UAE. I have to settle this loan here. Therefore I am planning to take Loan against my Indian property in India. Once I get the loan deposited in NRO account I will trasfer the amount to my mother account and then my mother will transfer this amount through bank in my UAE bank. The loan amount is INR 32,00,000. Is the possible. Do I need to do any IT formalities. Is this trasfer required 15CA and 15CB form.

  • Hi Mr.Beniwal,
    Thanks for the above article.Just a Question .Still RBI regulations I come across does mention LRS for Resident Indians only not mentioning about NRIs.(May be am I missing something?)
    Is there any recent RBO notification permitting NRIs/OCIs for self outward remittance to a foreign bank acct. or a gift to another NRI/OCI,in addition to residents?(of course in this case from NRO acct for NRI)
    .Thanks in advance for any inputs on that.

  • Hi ,
    Presently I am an Indian Citizen/resident. I am expecting my US immigrant visa hopefully in a few months in 2021 . I am planning to sell my house in India and want to transfer my assets to USA , preferably before I reach USA .
    I talked to some banks in India , who say that for transferring funds to USA , I need a bank account in USA , before I reach there. Without a bank account in USA , bank can not transfer funds from India on my immigration to USA .
    Therefore, I want to open a bank account in USA , before I leave India for USA .
    Please advise as to how I can open an account in a US bank from India for transferring funds before I leave for USA on immigration.
    I am looking for some practical advice . Thanks in advance .

  • We are British citizens now with OCI status. We would like to transfer our savings from home rental to our foreign account in USD or GBP. Is this possible? Who can help?

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