RBI permits remittances to international financial services centres

The Reserve Bank of India has allowed Indian residents to make remittances to international financial services centres (IFSCs) under the liberalized remittance scheme (LRS). Remittances towards transactions such as travel, education, gifts and capital account transactions like the purchase of immovable property would not be permitted via IFSCs. An Indian resident can send up to $250,000 per year overseas for travel, education and medical care as well as for the purchase of shares. The RBI's move is expected to benefit retail investors, high net-worth individuals (HNIs) and family offices to diversify their portfolios.