RBI Widens Scope Of Remittances To International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS)

The Reserve Bank of India issued a notification, widening the scope of remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS). At present, 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. However, on a review, 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 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,