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Consider the following statements with respect to Liberalised Remittance Scheme (LRS):
1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.
2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.
2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements with respect to Liberalised Remittan...
- Recently, RBI reported that the outward remittances under the Liberalised Remittance Scheme (LRS) for individuals rose about 31 per cent year-on-year (yoy) in July 2021 to $1.31 billion, mainly on the back of increase in expenses towards studies and travel.
- Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both. Hence statement 1 is correct.
- The Scheme was introduced in 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.
- In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc. Hence statement 2 is not correct.
- The remittance facility under the Scheme is not available for the following:
- Remittance for activities like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.
- Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
- Remittance for trading in foreign exchange abroad.
- Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”, from time to time
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Consider the following statements with respect to Liberalised Remittan...
Overview of Liberalised Remittance Scheme (LRS)
The Liberalised Remittance Scheme (LRS) is a significant initiative by the Reserve Bank of India (RBI) that allows resident individuals to remit a certain amount of money abroad for various purposes.
Statement Analysis
Statement 1: All resident individuals, including minors, can remit up to USD 2,50,000 per financial year.
- This statement is **correct**. Under the LRS, resident individuals, including minors, are permitted to remit up to USD 2,50,000 per financial year for permissible transactions such as education, travel, medical treatment, and investments.
Statement 2: LRS is available to Hindu Undivided Family (HUF) and partnership firms.
- This statement is **incorrect**. As of now, the LRS is applicable only to resident individuals and does not extend to HUFs or partnership firms. The scheme remains exclusive to individuals, allowing them to send money abroad for personal purposes.
Conclusion
- Based on the analysis of both statements, only the first statement is correct. Therefore, the correct answer to the question is option **A** - "1 only."
This understanding is crucial for individuals and entities considering remittances under the LRS, ensuring compliance with the rules set forth by the RBI.
The Liberalised Remittance Scheme (LRS) is a significant initiative by the Reserve Bank of India (RBI) that allows resident individuals to remit a certain amount of money abroad for various purposes.
Statement Analysis
Statement 1: All resident individuals, including minors, can remit up to USD 2,50,000 per financial year.
- This statement is **correct**. Under the LRS, resident individuals, including minors, are permitted to remit up to USD 2,50,000 per financial year for permissible transactions such as education, travel, medical treatment, and investments.
Statement 2: LRS is available to Hindu Undivided Family (HUF) and partnership firms.
- This statement is **incorrect**. As of now, the LRS is applicable only to resident individuals and does not extend to HUFs or partnership firms. The scheme remains exclusive to individuals, allowing them to send money abroad for personal purposes.
Conclusion
- Based on the analysis of both statements, only the first statement is correct. Therefore, the correct answer to the question is option **A** - "1 only."
This understanding is crucial for individuals and entities considering remittances under the LRS, ensuring compliance with the rules set forth by the RBI.
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Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements with respect to Liberalised Remittance Scheme (LRS):1. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.2. Recently, the LRS scheme is made available to Hindu Undivided Family (HUF) and partnership firms.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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