The Reserve Bank of India (RBI) on July 10, 2024, notified regarding the Remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS).
At present, remittances under LRS to IFSCs can be made only for:
o Making investments in IFSCs in securities except those issued by entities/ companies resident in India (outside IFSC); and
o Payment of fees for education to foreign universities or foreign institutions in IFSCs for pursuing courses mentioned in the gazette notification no. SO 2374(E) dated May 23, 2022, issued by the Central Government.
On a review, it has been decided that Authorised Persons may facilitate remittances for all permissible purposes under LRS to IFSCs for:
o Availing financial services or financial products as per the International Financial Services Centres Authority Act, 2019 within IFSCs; and
o All current or capital account transactions, in any other foreign jurisdiction (other than IFSCs) through an FCA held in IFSCs.
Authorised Persons shall bring the contents of this circular to the notice of their constituents and customers. The Master Direction No. 7/2015-16 on LRS is being updated to reflect these changes.
[Notification No. RBI/2024-25/49 A.P. (DIR Series) Circular No. 15]
