Liberalised Remittance Scheme (LRS) | UPSC

In India, any money you send overseas is subject to controls, as the government is wary of excessive outflows of foreign exchange draining its reserves and destabilising the rupee.

However, in 2004 for individuals to remit money across the border, the Reserve Bank of India (RBI) launched the Liberalised Remittance Scheme (LRS).

Under LRS, all resident individuals can freely remit $250,000 overseas every financial year for a permissible set of current or capital account transactions.

A 'person resident in India' is defined as a person residing in India for more than 182 days during the preceding financial year.

The remittances can be made in any freely convertible foreign currency and not just in US Dollars.