The Reserve Bank of India (RBI) on April 26, 2023, was notified regarding the remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS).
The attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 11 dated February 16, 2021, on “Remittances to International Financial Services Centres (IFSCs) in India under the Liberalised Remittance Scheme (LRS)” and Master Direction No. 7/2015-16 on Liberalised Remittance Scheme (LRS) as amended from time to time.
On a review and with an objective to align the LRS for IFSCs set up under the International Financial Services Centres Authority Act, 2019 vis-à-vis other foreign jurisdictions, it has been decided to amend the directions under para 2 (ii) of the aforementioned A.P. (DIR Series) Circular dated February 16, 2021, as – “Resident Individuals may also open a Foreign Currency Account (FCA) in IFSCs, for making the above permissible investments under LRS.” Thus, the condition of repatriating any funds lying idle in the account for a period up to 15 days from the date of its receipt is withdrawn with immediate effect, which shall now be governed by the provisions of the scheme as contained in the aforesaid Master Direction on LRS.
[Circular No. RBI/2023-24/21 A.P. (DIR Series) Circular No. 03]
