RBI Guidelines For Remittances
The RBI Guidelines for Remittances (Inward and Outward) play a crucial role in regulating the flow of foreign exchange in and out of India. These guidelines ensure that all remittance transactions comply with the legal framework under the Foreign Exchange Management Act (FEMA). For inward remittances, funds can be received through authorized banking channels and money transfer services, ensuring secure and legitimate transfers from abroad to India. For outward remittances, the RBI permits resident individuals to send up to USD 250,000 per financial year under the Liberalised Remittance Scheme (LRS) for purposes such as education, travel, gifts, medical treatment, and investments. Adherence to KYC norms, proper documentation, and reporting procedures are mandatory under the RBI’s framework to maintain financial integrity and transparency in cross-border transactions.
