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RBI Doubles the FOREX Remittance Limit

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The Reserve Bank of India has doubled the eligibility limit for FOREX remittances to $250,000 per person per year under the Liberalised Remittance Scheme (LRS), which allows residents to acquire and hold shares, debt instruments or other assets outside India without prior approval of the RBI. The eligibility limit for FOREX remittances under the LRS was USD 75,000 in 2013 and USD 125,000 in June 2014.

India’s foreign exchange reserves touched a new life-time high at $322.135 billion in mid-January 2015. According to the report, Foreign funds had been pumping more and more dollars into Indian equities ever since Narendra Modi‘s Government took charge in May.

Knowledge is Wealth

What is FOREX Reserve?

  • In simple words, FOREX Reserve means deposits of a foreign currency held by a central bank. By holding the currencies of other countries as assets, it is possible for the Government to keep their currencies stable and reduce the effect of economic shocks.
  • The Country which holds the highest FOREX Reserve is China. India stands Ninth position with the Forex Reserve of $322 Billion (As of Jan 2015). 
  • What is Remittance? 

    Remittance is transfer of money by a foreign worker to a specific person in his/her home country. It is considered as the important financial inflow for developing countries. According to World Bank report, India remains in top position (since 2009) among all the recipient countries of remittances.