Under the Liberalized Remittance Scheme ("LRS"), the limitation on individuals to avail foreign exchange facilities for purposes such as gifts, donations, private visits outside India, emigration, education abroad, business travel, medical treatment is an amount up to USD 2,50,000, subject to certain conditions, in a financial year, without any approval of Reserve Bank of India.
The Ministry of Finance has amended the Foreign Exchange Management (Current Account Transaction) Rules, 2000, ("Rules") to bring the use of international credit cards within the purview of LRS.
Now, when a resident individual is on a visit outside India and uses an International Credit Card for making payments towards meeting expenses, such person would be subject to the LRS limits specified in Schedule III of the Rules, which currently is USD 2,50,000, in a financial year.
The aforementioned was notified vide a notification dated May 16, 2023 (available here) and shall come into force from May 16, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
