Reserve Bank further liberalises remittances under LRS through IFSCS

THE Reserve Bank has further liberalised remittances under the LRS (liberalised remittance scheme) via the International Financial Services Centres (IFSCs) by allowing remittances for availing of financial services or financial products as well as all current or capital account transactions, in any other foreign jurisdiction (other than IFSCs) through an FCA held in IFSCs.

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The extant LRS through the IFSCs allows only remittances under making investments in IFSCs in securities except those issued by resident entities/companies and for payment of education fees to foreign universities or foreign institutions in IFSCs for pursuing courses mentioned in the gazette notification.

However, the central bank said the revised norms will still be subject to the International Financial Services Centres Authority Act, 2019 within IFSCs.