The Reserve Bank of India (RBI) has increased the remittance limit under the Liberalised Remittance Scheme from $75,000 to $125,000. Last year, the central bank had cut down the remittance limit from $2 lakh to $75,000 to support the depreciating rupee.
In its statement, RBI said, "In view of the recent stability in the foreign exchange market, it has been decided to enhance the eligible limit to $125,000 without end-use restrictions except for prohibited foreign exchange transactions such as margin trading, lottery and the like". "It's a welcome move.
Although the operating guidelines are yet to come out, it will bring relief for many who were unable to remit due to the sharp reduction in limit last year," says Amit Maheshwari, a chartered accountant. RBI has also allowed non-resident Indians (NRIs) to take out Indian currency notes worth up to Rs 25,000 from the country. Earlier, NRIs were not allowed to take out currency notes from the country.
For residents, the limit has been raised from Rs 10,000 to Rs 25,000. This has been done to help NRIs who travel in India. Now, all residents and nonresidents visiting India, except for Pakistanis and Bangladeshis, are allowed to take out Indian currency notes up to Rs 25,000.
