Forex Limits in India for Individuals- Purpose wise breakdown
Planning an international trip, sending money abroad, or paying overseas fees? The Reserve Bank of India (RBI) regulates how much foreign exchange (forex) individuals can send or carry abroad under the Liberalised Remittance Scheme (LRS). Here's a purpose-wise breakdown of limits across cash, forex cards, and remittance modes.
What is the LRS?
The LRS is an initiative by the Reserve Bank of India that allows all resident individuals to remit up to USD 250,000 per financial year (April–March) for permissible capital and current account transactions. Minor residents are also covered under the scheme.
Introduced in 2004 with an initial cap of USD 25,000, the limit has been raised time and again, depending on the needs of India's fast-changing financial ecosystem.
Individuals can use LRS limit for several transactions:
- Private visits abroad
- Higher education and tuition fees
- Medical treatment and health check-ups
- Overseas employment or emigration
- Supporting close relatives abroad
- Business travel, training, and conferences
- Gifts to eligible recipients
Other current account transactions permitted under FEMA
Forex for Private Travel:An individual who is resident and Indian can remit USD 250,000 per annum for leisure or personal travel, irrespective of the number of trips undertaken. Of this: You can take USD 3,000 or its equivalent in cash (currency) abroad per trip. The remaining amount can be loaded on forex cards or traveler's cheques
Study Abroad - Forex Limits For Students: Students going abroad for higher studies can remit a maximum of USD 250,000 during a financial year. Of this, up to 3,000 US dollars can be carried in cash.
The remaining amount can be loaded on a student forex card or transferred directly to a university or bank account abroad. The DD under the Scheme can be issued either in the name of the remitting individual or in the name of the beneficiary with whom he/she intends to undertake the transactions permitted during private foreign visits, and are issued on the basis of a self-declaration by the person submitting it in the prescribed form.
Forex for medical treatment abroad: Under the LRS, you can get up to USD 250,000 per financial year for medical treatment abroad without hospital assessment. In case of expenses exceeding the limit, further Forex can be arranged on submission of treatment estimates from Indian or foreign hospitals.
An attendant accompanying the patient are eligible for a separate limit of US$250,000 per financial year.
Forex for Employment or Emigration:Employment abroad: Up to USD 250,000 each FY may be remitted under LRS.
Of this, USD 3,000 can be carried in cash, and the remaining can be loaded onto a forex card.
Emigration: Forex can be drawn to the tune of USD 250,000 or as prescribed by the host country. However, investment-based immigration programs are ruled out under LRS.
Gift Transfers:Resident individuals may gift or donate to an amount of USD 250,000 annually to NRIs, OCIs.
Note: Gifts to foreign nationals (non-NRIs/OCIs) are not allowed under the LRS.
What Happens to Unused Forex on Return?
Foreign exchange up to USD 2,000 can be retained in the form of cash or traveler's checks for further use.
Such above that threshold must be surrendered:
Cash within 90 days Traveller's Cheques within 180 days
Remittances Prohibited by LRS
You cannot remit money under LRS for:
Lottery tickets, sweepstakes, or banned magazines
Investment in countries such as Bhutan, Nepal, Mauritius, or Pakistan
Payments towards other entities connected with terrorism
Documentation for Remittance Under LRS
When you choose Orient Exchange, our experts guide you through every step. You will need:
PAN card (mandatory)
Form A2 at the time of remittance
Valid KYC documents
Proof of purpose (for cases exceeding limits or requiring documentary evidence)
Related blog: https://www.orientexchange.in/simple-forex-rules
Why Choose Orient Exchange?
RBI-authorized money changer
Competitive exchange rates
Fast processing and expert assistance
Pan-India presence with online and offline support
Every Indian planning to travel, study, work, or just help family abroad must comprehend forex limits under the Liberalized Remittance Scheme. This scheme has a generous limit of USD 250,000 per annum for allowed persons and is flexible enough and convenient to be used for numerous legitimate purposes. Orient Exchange is here to ensure that you have smooth navigation of the Foreign exchange and remittance process with suitable advice and competitive rates and the utmost adherence to RBI regulations. From Overseas education, sending gifts abroad to medical expenses, Orient Exchange makes international transactions easy, safe, and efficient for you.