Guide to the RBI Liberalised Remittance Scheme & Global Investing.
Your gateway to global investing — what the LRS allows, how TCS works after Budget 2026, and where Raveum fits in turning your USD 250,000 annual limit into income-producing assets.
What is the Liberalised Remittance Scheme?
The Liberalised Remittance Scheme (LRS) is the foreign exchange policy initiative introduced by the RBI in February 2004. Before its arrival, transferring funds internationally was heavily restricted. The scheme streamlined the process — empowering resident individuals to freely remit funds abroad for a wide range of permissible current and capital account transactions.
Available to all resident individuals in India — including minors. You need an active Indian bank account, a valid PAN and a passport.
An aggregate cap across categories. Daily transaction limits may vary by bank. Strictly prohibited uses include margin trading, lottery tickets and certain unapproved real-estate structures.
Benefits of the LRS
The scheme unlocks a wide spectrum of permissible uses — from global investing to schooling abroad.
Diversification
Build a global portfolio across foreign stocks, mutual funds, bonds and real estate.
Overseas Education
Remit tuition and living expenses for higher studies abroad.
Medical Treatment
Access specialised treatments at foreign medical institutions.
Travel
Cover flights, hotels and on-trip costs without separate FX hoops.
Gifts & Maintenance
Send gifts or maintain close relatives living abroad.
Put your LRS limit to work in U.S. real estate.
Buying a whole property abroad usually exceeds the USD 250,000 ceiling. Raveum lets you participate fractionally — starting from $100 — in pre-leased, professionally managed U.S. real estate.
Accessible global investing
Fractional U.S. real estate from $100 — no need to deploy your full LRS limit at once.
Compliant by design
Strict AML/KYC, legally verified ownership and structured remittance documentation.
Institutional-grade assets
Pre-leased, professionally managed properties curated for income reliability.
Passive dollar income
Receive dollar-denominated distributions and track performance in real time.
Step-by-step outward remittance
Transferring funds from an Indian account to a foreign account under the LRS follows a defined RBI process.
Choose an Authorised Dealer
All LRS payments route through a bank branch designated as an authorised dealer for foreign exchange.
Provide Documentation
Carry your PAN card. Be ready to satisfy the bank's KYC and AML requirements.
Fill Form A2
The official form to purchase foreign currency under LRS — signed by you, or by the legal guardian for minors.
Fund from your own account
Banks cannot extend credit specifically to fund LRS capital-account transfers.
Understanding Tax Collected at Source on LRS
TCS applies to LRS remittances above the annual threshold, but generous exemptions exist — and Budget 2026 reduced rates for several common purposes.
TCS is an advance tax payment, not an extra fee. It is fully refundable and can be adjusted against your income tax liability when filing returns.
Overseas Direct Investment (ODI)
While LRS dictates how much an individual can send abroad, the ODI framework dictates how strategic business investments must be structured and reported. Anyone acquiring control in a foreign company — or expanding an Indian business internationally — must comply with ODI.
What counts as ODI
Acquiring unlisted equity, subscribing to a foreign entity's MoA, ≥10% in a listed foreign entity, or any investment granting management control.
Who invests, and how much
Indian corporates, LLPs and partnerships can commit up to 400% of net worth — including equity, debt and guarantees — based on their last audited balance sheet. Resident individuals invest within their USD 250,000 LRS limit.
Prohibited sectors
The foreign entity must be engaged in a bona fide business activity. ODI is off-limits in real estate businesses, gambling, and trading in financial products linked to the Indian Rupee.
Reporting & UIN
File Form ODI before remitting to notify your AD bank, secure a Unique Identification Number (UIN), and submit an Annual Performance Report (APR) each year.
No round-tripping
Structures designed to route capital back into India through more than two layers of subsidiaries are expressly prohibited.
Common questions, answered.
The most-asked queries about LRS, TCS and Form A2.
Your LRS allowance is waiting.
Put a portion of your annual USD 250,000 to work in dollar-denominated, income-producing U.S. real estate — fractionally, from $100.