The Liberalised Remittance Scheme (LRS) is a facility provided by the Reserve Bank of India (RBI) that allows Indian residents to freely remit a certain amount of money abroad for various purposes such as education, travel, medical treatment, gifts, investment, etc. Under LRS, individuals can remit up to $250,000 per financial year. The scheme was introduced in 2004 and has been periodically revised by the RBI. The objective of LRS is to facilitate remittance of funds by individuals for genuine purposes and to promote the ease of doing business in India. However, the scheme has also been subject to abuse by some individuals and has been used for money laundering and other illegal activities, prompting the RBI to tighten its monitoring and regulatory framework.
