Reserve Bank of India on Thursday said individuals can also use funds under Liberalised Remittances Scheme (LRS) to buy immovable property abroad. Encouraged by an improvement in the foreign exchange market, the Reserve Bank on June 3 had raised annual overseas investment ceiling for individuals to $125,000 from $75,000. “Banks have been allowed to remit up to $125,000 per financial year, under the scheme, for any permitted current or capital account transaction or a combination of both. Further, it is clarified that the scheme can now be used for acquisition of immovable property outside India,” RBI said. The LRS allows residents to acquire and hold shares, debt instruments or other assets outside India without prior approval of the RBI. In August last year, RBI reduced the ceiling from $200,000 to $75,000 per person in a financial year under the LRS in view of the worsening current account deficit and a volatile rupee. Meanwhile, RBI also signed a memorandum of understanding with the Monetary Authority of Hong Kong for exchange of supervisory information.
Source – www.economictimes.indiatimes.com
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