The Liberalized Remittance Scheme is a facility provided by the RBI for all resident Indians including minors, to remit up to USD 2,50,000 (or its equivalent in any currency) per financial year (April - March).

The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised over the years as per the economic conditions in India.

A Resident Indian can transfer a maximum of USD $2,50,000 or it’s equivalent in any currency from India to USA per year (check today’s US Dollar rate in India).

• Private Travel to the United States of America

For private travel to the US, RBI allows any resident Indians to draw foreign exchange up to US$ 2,50,000 in a financial year from authorized dealers or fully-fledged money changers. This limit is applicable irrespective of the number of trips to the US in a financial year, as long as the total forex limit of the resident Indian falls below US$ 2,50,000. Out of this, 3,000 USD or equivalent can be taken abroad as cash (Currency) per trip. The remaining amount can be carried in forex card and/or traveller’s cheques.

In the case of arranged tours to the US, all tour related expenses including cost of rail/road/water transportation outside India and overseas hotel/lodging expenses shall be included under the LRS limit. The tour operator can collect this amount either in Indian rupees or in US Dollars from the resident traveller.

Study Abroad in a US university

Foreign exchange up to US$ 2,50,000 is permitted by RBI for the purposes of studying in the US. Amounts in excess of the limit can be released on the basis of documentary evidence of requirement like estimate received from a university abroad.

The Scheme can be used for outward remittance in the form of a DD either in the resident individual’s own name or in the name of the beneficiary with whom he/she intends putting through the permissible transactions at the time of private visit to the US, against self-declaration of the remitter in the format prescribed.

Individuals can also open, maintain and hold foreign currency accounts with a bank in the US for making remittances under the Scheme without prior approval of the Reserve Bank. The foreign currency accounts may be used for putting through all transactions connected with or arising from remittances eligible under this Scheme.

• Medical treatment in the USA

A person going to the US for medical treatment is allowed foreign exchange up to an amount of USD 2,50,000 per FY without insisting on an estimate from a hospital/doctor. For amount exceeding the above limit, Authorised Dealers may release foreign exchange under general permission based on the estimate from the doctor in India or hospital/ doctor in the US. A person who has fallen sick after proceeding to the US may also be released foreign exchange by an Authorised Dealer (without seeking prior approval of the Reserve Bank of India) for medical treatment outside India.

In addition to the above, an amount up to USD 250,000 per financial year is allowed to a person for accompanying as attendant to a patient going abroad for medical treatment/check-up.

• Employment in the US

A person going to the US for employment can draw foreign exchange up to USD 2,50,000 per FY from an Authorised Dealer in India.

• Emigration to the United States of America

A person wanting to emigrate to the United States of America can draw foreign exchange from AD Category I bank and AD Category II money changers up USD 250,000. Remittance outside in excess of this limit may be allowed only for meeting incidental expenses in the US. This scheme cannot be used for the purpose of earning points or credits to become eligible for immigration by way of overseas investments in government bonds; land; commercial enterprise; etc.

• Maintenance of close relatives staying in the USA

A resident Indian can send money to the US for the maintenance expense of their close relatives up to up-to USD 2,50,000 per Financial Year (April - March) [‘relative’ as defined in Section 2(77) of the Companies Act, 2013] abroad.

• Gift Remittance / Donation to the USA.

Any resident individual may remit up to USD 2,50,000 in a Financial Year as a gift to a person residing in the US or as a donation to an organization in the US.

However, gift remittance can only be sent to Resident Indians, NRIs or Overseas Citizen of India (OCI).

A gift to foreigners is not possible under this scheme.

The best way to transfer money internationally from India is through “Wire Transfer/Telegraphic Transfer”.

It is fast and comparatively cheap.

This is the method used by banks and money changers in India to transfer money from India to the US.

To find the money transfer centre in your locality offering the best exchange rates and least service fees, you can use extravelmoney.com.

These are some of the FEMA rules for sending money to Australia from India;

• The maximum remittance limit for an Indian citizen is US$ 2,50,000 per financial year.
• All money transfer abroad transactions should be paid through NEFT/RTGS or Online payment gateway modes such as internet banking and debit cards. Cash transactions are not accepted for money transfer abroad.
• PAN is mandatory for sending money abroad under the LRS scheme of FEMA.

More information on RBI and FEMA Rules for money transfer abroad