Remittances of $1 lakh allowed for foreign education: RBI

India Infoline News Service | Mumbai |

Liberalised Remittance Scheme (LRS) can be used by resident individuals to acquire both listed and unlisted shares of an overseas company

The Reserve Bank of India (RBI) on Wednesday said it had not imposed restrictions on expenses for overseas medical treatment and studies when it reduced the limit on outward remittances on August 14, 2013.

Liberalised Remittance Scheme (LRS) can be used by resident individuals to acquire both listed and unlisted shares of an overseas company.

On August 14, the RBI had reduced the limit of remittances to $75,000 from $2 lakh to check the outward flow of capital and contain the sliding value of the rupee.

According to RBI, only gift and donation by a resident individual were included under the annual LRS limit of $75,000. Expenses on education and medical treatment purposes would be independent of the limit.

“A resident individual can make remittances for meeting expenses for medical treatment abroad up to the estimate from a doctor in India or hospital/doctor abroad under general permission...”, the RBI said in a clarification, adding that these would be above and over the LRS limit.

An individual will also be allowed to make remittances up to $25,000 for maintenance expenses of a patient going abroad for medical treatment or check-up or for an attendant accompanying a patient going abroad for treatment or check-up.

For overseas studies, individuals would be allowed remittances of $1 lakh over and above the annual LRS limit of $75,000.

With regard to investments in immovable property abroad acquired on instalment basis, the RBI said, “Resident individuals are permitted to make remittances for acquiring immovable property within the annual limit of $75,000 for already contracted cases (contracts entered into on or before August 14, 2013).”
 

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