RBI Allows Authorised Persons to Facilitate Remittances for All Permissible Purposes Under LRS to IFSCs

Circular No. RBI/2024-25/49 A.P. (DIR Series) Circular No. 15, Dated: 10.07.2024

Under the extant norms, remittances under LRS to IFSCs can be made only for:

• Making investments in IFSCs in securities except those issued by entities/ companies resident in India (outside IFSC); and
• Payment of fees for education to foreign universities or foreign institutions in IFSCs for pursuing specific courses.Further, resident individuals were allowed to open Foreign Currency Accounts (FCA) in IFSCs for the aforementioned purposes.Now, RBI has decided that Authorised Persons may facilitate remittances for all permissible purposes under LRS to IFSCs for availing financial services or financial products as per the International Financial Services Centres Authority Act, 2019 within IFSCs and for all current or capital account transactions, in any other foreign jurisdiction (other than IFSCs) through an FCA held in IFSCs.

  For these permissible purposes, resident individuals can open Foreign Currency Account (FCA) in IFSCs.

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