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Consider the following statements about the Liberalised Remittance Scheme:
- All resident individuals are allowed to freely remit up to USD 2,50,000 per financial year.
- Trading in foreign exchange abroad is permissible under the Liberalised Remittance Scheme.
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 about the Liberalised Remittance Sch...
1. All resident individuals are allowed to freely remit up to USD 2,50,000 per financial year.
- This statement is correct. Under the Liberalised Remittance Scheme (LRS) issued by the Reserve Bank of India (RBI), resident individuals are allowed to remit up to USD 2,50,000 per financial year for permissible current or capital account transactions. This limit is subject to certain conditions and documentation requirements.
2. Trading in foreign exchange abroad is permissible under the Liberalised Remittance Scheme.
- This statement is incorrect. The Liberalised Remittance Scheme does not permit trading in foreign exchange abroad. The funds remitted under the LRS can be used for specific purposes such as overseas education, medical treatment, investment in foreign stocks, and purchase of property abroad, among others. However, engaging in speculative activities like forex trading is not allowed under the scheme.
Therefore, the correct answer is option 'A' - 1 only. The Liberalised Remittance Scheme provides Indian residents with a convenient way to remit funds abroad for various legitimate purposes within the specified limit. It is important for individuals to adhere to the guidelines and regulations set by the RBI while making use of the LRS to ensure compliance with the foreign exchange laws.
- This statement is correct. Under the Liberalised Remittance Scheme (LRS) issued by the Reserve Bank of India (RBI), resident individuals are allowed to remit up to USD 2,50,000 per financial year for permissible current or capital account transactions. This limit is subject to certain conditions and documentation requirements.
2. Trading in foreign exchange abroad is permissible under the Liberalised Remittance Scheme.
- This statement is incorrect. The Liberalised Remittance Scheme does not permit trading in foreign exchange abroad. The funds remitted under the LRS can be used for specific purposes such as overseas education, medical treatment, investment in foreign stocks, and purchase of property abroad, among others. However, engaging in speculative activities like forex trading is not allowed under the scheme.
Therefore, the correct answer is option 'A' - 1 only. The Liberalised Remittance Scheme provides Indian residents with a convenient way to remit funds abroad for various legitimate purposes within the specified limit. It is important for individuals to adhere to the guidelines and regulations set by the RBI while making use of the LRS to ensure compliance with the foreign exchange laws.
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Consider the following statements about the Liberalised Remittance Sch...
- Under the Liberalised Remittance Scheme (LRS), all resident individuals 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.
- The individuals can avail forex facilities under the LRS for the purposes like studies abroad, going abroad for employment, medical treatment expenses abroad, private visits to foreign countries, gifts/donations, maintenance of close relatives abroad etc.
- However, certain items, like investment in the FCCBs (Foreign Currency Convertible Bonds), issued by the Indian companies in the overseas market, and trading in foreign exchange abroad are prohibited under the Liberalised Remittance Scheme.
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Consider the following statements about the Liberalised Remittance Scheme: All resident individuals are allowed to freely remit up to USD 2,50,000 per financial year. Trading in foreign exchange abroad is permissible under the Liberalised Remittance Scheme.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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