Strict checks coming in! RBI to tighten rules for overseas remittances by resident Indians; here's what is being planned
The RBI's Liberalised Remittance Scheme (LRS) governs foreign investments by individuals. (AI image)
The
Reserve Bank of India
intends to strengthen regulations concerning international money transfers, that is, overseas remittances by Indian residents, with new restrictions on foreign currency deposits that involve lock-in periods.
The RBI's Liberalised Remittance Scheme (LRS) governs foreign investments by individuals, permitting resident Indians to send up to $250,000 annually for various purposes, including overseas education, travel, investment in equity and debt instruments, and healthcare services.
The RBI will modify its guidelines to stop international transfers from being utilised to deposit funds in overseas interest-bearing accounts or time deposits, an official told Reuters.
"This is akin to passive wealth shifting, which is a red flag for the RBI in a still-controlled capital regime," noted the official.
India's conservative approach towards increasing outward remittances and complete rupee convertibility is evident in these proposed modifications, as officials work to protect forex reserves and control currency fluctuations, according to the sources.
The central bank, whilst in talks with the government, intends to implement measures preventing such deposits from being made under different nomenclatures, as per the second source.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
What She Did Mid-Air Left Passengers Speechless
medalmerit
Learn More
Undo
Also Read |
Rs 4.58 crore siphoned off from customer accounts, FDs! How former ICICI Bank relationship manager pulled off a stunning fraud - explained in 10 points
The initiative aims to streamline regulations within the scheme's legal structure, aligning with the central bank's stated objectives in its yearly report.
According to RBI statistics, individual residents' outward remittance deposits increased significantly to $173.2 million in March, up from $51.62 million in February.
March traditionally sees heightened outward remittances as residents seek to utilise their yearly allowances and manage tax implications.
Whilst it remains the scheme's peak period under LRS, the RBI has expressed concerns about potential passive fund parking.
The total outward remittances under the scheme for the financial year 2024/25 showed a slight decrease but maintained substantial levels at approximately $30 billion, compared to $31 billion in the previous year.
The outbound transfers from India through the programme have shown consistent growth, especially with fintech companies and private banking institutions facilitating international investments for individual investors.
Also Read |
Remittances tax: How Donald Trump's 'The One Big Beautiful Bill' may turn out to be ugly for Indians in the US
"The move addresses a growing misuse of the scheme as a vehicle for passive capital export," according to the second official.
"It also aligns the scheme more closely with India's calibrated approach to capital account convertibility."
India maintains a prudent stance regarding unrestricted outward flows, primarily to safeguard its forex reserves and regulate currency fluctuations.
The updated regulations will not impact authorised foreign investments in shares, mutual funds or real estate under the LRS, as confirmed by the second official.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
25 minutes ago
- Time of India
Aster DM Healthcare lines up Rs 1,900 crore capex to expand presence
Bengaluru: Aster DM Healthcare has lined up Rs 1,900 crore to expand its hospital network across India. This strategic expansion aims to increase its total bed capacity to 13,600 by the 2026-27 financial year, positioning Aster as one of the top healthcare providers in the country. "The merger between Aster DM Healthcare and Quality Care India unlocks significant synergies that will drive growth, operational efficiency, and enhanced patient care across the combined network. As part of our expansion strategy in India, the merged entity plans to add 3,300 beds organically. Of these, around 2,100 beds will be added by Aster and the remaining by QCIL. The total capex outlay is Rs 1,878 crore, of which Rs 323 crore was already spent so far in the 2025 fiscal," said Dr Azad Moopen, founder and chairman of Aster DM Healthcare. Of the 2,100 beds planned for Aster's India expansion, Bengaluru will get 939 new beds, including the upcoming hospital on Sarjapur Road, strengthening Aster's position among the city's top three healthcare providers. Moopen said 818 beds will be added in Kerala over the next three years, anchored by two greenfield projects—Aster Kasargod (264 beds) and Trivandrum (454 beds). In Hyderabad, a 300-bed women and children's hospital will be commissioned soon. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Robotic-assisted surgeries are a key part of Aster's oncology capabilities, with the use of cutting-edge platforms like the fourth-generation Da Vinci Robot and SSI Mantra, which allow for minimally invasive, high-accuracy procedures. In the last financial year alone, Aster performed over 1,865 robotic surgeries and 575 transplants, underscoring the trust placed in its expertise by a growing patient community. Through a combination of advanced technology and compassionate, patient-centric care, Aster is redefining the cancer treatment journey across its network. "We have also launched three groundbreaking initiatives—Precision Oncology Clinics, the Aster Cancer Grid, and Onco Collect software. These efforts are designed to personalise cancer treatments based on genomic profiling, ensuring therapies are tailored to individual patients for greater efficacy and reduced side effects. By leveraging genetic testing and molecular diagnostics, we aim to bring precision medicine to the forefront of cancer care. The Aster Cancer Grid connects hospitals, researchers, and institutions to foster collaborative research, standardise clinical practices, and support multi-centre clinical trials."
Time of India
33 minutes ago
- Time of India
Libra Daily Horoscope Today, June 16, 2025: Your quiet power draws admiration
You may not realise it, but someone around you deeply respects your inner strength. What you take as 'normal' effort is inspiring to others. Today brings soft recognition—not loud applause, but heartfelt admiration. Don't shrink your light to make others feel comfortable. Your grace under pressure, your kindness in challenge, is what makes you special. Let your presence speak, even in silence. The universe reminds you that you're seen, even when no one says it aloud. Continue with quiet dignity. Libra Love Horoscope Today In matters of the heart, today encourages balance. You may attract someone with your calm, thoughtful way. Don't rush into emotional sharing; let things unfold slowly. If you are in a relationship, your partner may seek more closeness. A small compliment or gesture of appreciation will deepen the bond. If single, notice who makes effort to understand your world. True love will not need dramatic moves—it will show in mutual respect and peace. Speak gently and listen with interest. Libra Career Horoscope Today Work today feels peaceful if you stay organised. You may be asked for guidance or support from someone younger or less experienced. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Offer help without arrogance. Your ideas hold value, so share them when asked. If you're working in a creative or beauty-related field, today brings extra inspiration. You might want to change your workspace or bring freshness to your schedule. Avoid arguments about leadership or credit—your quiet contribution is being noted, even without spotlight. Be steady and soft-spoken. Libra Money Horoscope Today Your money matters are balanced, but avoid sudden purchases. Someone may try to influence your decision, but stay firm. Today is not about showing wealth; it is about using it wisely. Think twice before lending money or making emotional purchases. It's a great time to review old budgets or clean out bills and receipts. You may discover unused subscriptions or forgotten expenses. This review will bring more clarity. Small financial habits today can make big difference in coming weeks. Libra Health Horoscope Today Health feels good today, but some mild stiffness or laziness may be present due to lack of movement. Try not to sit for long hours without stretching. Skin or hair might feel dry—natural oils and proper hydration will help. Avoid junk food or very spicy meals. The body is asking for softness—warm meals, gentle care, and calm surroundings. If you stay balanced emotionally, your physical energy will remain stable throughout the day. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
Time of India
39 minutes ago
- Time of India
Quality Over Quantity
Tamil Nadu has the distinction of being a frontrunner in exports, in electronics, textiles, leather, and automobiles. Simultaneously, the state has witnessed shrinking agricultural lands and increasing urbanisation, which has exerted stress on its agricultural exports. The area under horticultural crop cultivation such as vegetables, fruits, spices, aromatic crops, medicinal crops, flowers and plantation in the state is 16 lakh hectares contributing a total production of about 235 lakh tonnes. In the food grains segment, production of 130 lakh tonnes comprising rice, millets and pulses is targeted for the current financial year. In exports, the state's share remained less than 5% over seven years, though it rose to the 7th position in 2024-25 from 9th in 2022-23. During 2024-25, TN recorded $1.5 bn exports in the agriculture sector, as per data available with the NIRYAT portal of the Union ministry of commerce and industry. While Madhya Pradesh was just ahead at $1.7 billion, Karnataka stood fifth with an export value of $2.2 billion in the last fiscal (FY25). While Tamil Nadu might not be in a position to compete with states such as Maharashtra, Gujarat and Andhra Pradesh in the quantum of agricultural exports, it has unique, high-quality GI-tagged agricultural produce. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Run Your Business Like a Pro - Top Trending Accounting Software (Check Now) Accounting ERP Click Here Undo The state has several unique agri, horti and floricultural offerings that can cater to the growing global demand, including turmeric, banana, tea, mangoes, jasmine, among others. Turmeric is among the most sought-after spices across the world, and TN is the third largest producer of the commodity in India. Popular for its utility in the manufacturing of curry powder, turmeric is well known for its medicinal value too. However, just 15% turmeric is exported from its hub in Erode that holds GI tag for Erode Manjal (Erode Turmeric). S Chandramohan, director and group president finance, TAFE, and past chairman of CII Tamil Nadu, says there is a potential for value addition. 'Turmeric is used in Germany for various applications such as promoting skin health, supporting the immune system, aiding digestion and promoting general health.' He adds, 'Stakeholders in the agro space could consider tie-ups with enterprises specialising in Ayurvedic solutions. Adhering to quality control and communicating regional requirements to the farmers to ensure compliance will go a long way,' he said. It's noteworthy that Tamil Nadu is the largest producer of bananas in India. About 30 varieties are grown in more than one lakh hectares across 12 districts mostly concentrated in Trichy, Theni, Tuticorin, Pudukkottai and Coimbatore. Manikutty Subramanian, director of Trichy-based TN Banana Producer Company says hardly 5% of banana from the state is exported. 'We are mainly exporting the G9 variety of banana due to its low price. Of late, our native varieties such as Nendran and red banana are also seeing an interest among consumers in UAE and Saudi Arabia. Nendran is also exported in the form of dry banana, a ready to eat value added product with a shelf life of three to six months. We are urging farmers to tap the global market as it will double their income through foreign exchange. We believe that banana exports can move up to 20% over the years if there is special focus on increasing exports,' he added. Tamil Nadu must focus on creating value-added products, inspire local entrepreneurs to build homegrown premium brands, launch Tamil Nadu agri-products on global e-commerce platforms, promote them in airports, trade fairs, and food expos. Anil Kumar SG, founder and CEO of Chennai-headquartered agri-value chain enabler, Samunnati says, 'Imagine Tirunelveli or Theni mango juice in sustainable glass bottles, Pollachi coconut bites sold in airport lounges, or Nilgiris tea-infused chocolates/pastries crafted for global connoisseurs. There should be partnerships with global brands to enter new markets,' he said. A category yet to be well-tapped in exports is flowers. TN is the largest producer of flowers in India, with a share of 20%, produces about five lakh tonnes of flowers per annum. Of this, cut roses are exported to Europe and east Asian countries, while jasmine is flown to the Middle East and UK. R Murthy, president of Flower Growers Association of TN says. 'A floriculture park must be established at Kodaikanal on the lines of industrial parks for food and other manufacturing sectors. This park will be a game changer in exports because flowers can be processed and packed depending on the requirements of various countries,' he adds. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
