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What is the Liberalised Remittance Scheme LRS(LRS)?

The Liberalised Remittance Scheme (LRS) allows Indian residents to remit up to USD 250,000 (or currency equivalent) per financial year to another country for investments and expenditure. The scheme is overseen by the Reserve Bank of India (RBI). This limit is per individual including minors, which means that a family of five can remit up to USD 1.25 million per financial year (or currency equivalent). This quota includes any investments such as: GBP securities, real estate,bank depositsand other expenses such as foreign travel, medical costs, and student education.

How do I complete my LRS payment?

  • Open an account with Interpolitan Money. We have local Indian Rupee accounts and accounts domiciled in the UK, EEA and more countries so we can handle the service from beginning to end.
  • The correct documents will be needed. Please email us at banking@interpolitanmoney.com for more information or contact your dedicated relationship manager directly.

What is the list of documents that I need for this process?

  • 1. Interpolitan Money will undergo a KYC check required by the UK Financial Conduct Authority (FCA) and the relevant financial law where Interpolitan Money operates to ascertain the legality of the client. Requirements can include:
  • Proof of ID
  • Proof of Address
  • Proof of Income
  • Invoice/Reason to facilitate service
To initiate a remittance from India, you need to completean‘A2’ form. On the form you will be required to fill in:
  • Basic details (Applicant name, PAN Card Number, details of the AD and beneficiary details)
  • The purpose and its code for the reason of remittance.
  • A declaration by the applicant and certificate by the AD that the amount remitted throughout the financial year does not exceed the limit, and is not used for the prohibited purposes.
If your account with us has been open for less than a year, proof of income/source of funds will be required.

Please contact us at banking@interpolitanmoney.com or contact your dedicated relationship manager directly for more information.

What are the approved reasons for LRS payments?

There are over 100 approved reasons so it’s likely your ones will be on the form. There are two different types of permissible remittance under the scheme – Current and Capital Account transactions.

Current Account transactions:
  • Private travel and tourism expenses (other than Nepal and Bhutan)
  • A gift or donation to an individual or organisation outside India
  • A business trip
  • Support for close relatives
  • Medical treatment
  • Overseas education

Capital Account transactions:
  • Opening up accounts with Interpolitan Money as authorised by the UK FCA
  • Purchase of property abroad
  • Making investments abroad
  • Setting a WOS or a JV for a bona fide business activity
  • Extending loans in INR to NRIs being relatives, as per Companies Act 2013 (Only interest-free loans with a minimum maturity of one year are allowed.

What are the prohibited reasons for LRS remittances?

Remittance for any purchase that is prohibited/any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000 is prohibited as a purpose for use of LRS.

Some of the main forbidden transactions:
  • The purchase of lottery tickets/sweepstakes, prescribed magazines, etc.
  • The fulfilment of margins/margin calls to overseas exchanges or overseas counterparties.
  • The purchasing of Foreign Currency Convertible Bonds (FCCB) issued by Indian companies in the overseas market.
  • Foreign exchange speculation.
  • Capital account remittances, directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non-cooperative countries and territories” unless done with the infrequent permission of the RBI.
  • The remittance either directly or indirectly to those individuals and entities identified as posing a significant risk of committing acts of terrorism as advised by the RBI.
  • Resident Indians cannot gift to another resident Indian in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS.
  • Any reason you provide if you are not a resident Indian. Non-resident Indians (NRI) have to comply with separate legal permissions outside of LRS. For example, if you are a tourist returning from India.

What else Should I Know?

  • Minors can utilise the scheme provided they have their legal guardians’ approval.
  • LRS is not available to non-resident Indians, HUF’s, Corporates, Partnership firms, and Trusts.
  • All the remittances should be routed only through designated Authorised Dealer (AD), and no specific approval up to the permitted limit is required from RBI.
  • The cap of USD 250,000 is for the entire financial year irrespective of the number of times the amount is remitted abroad.

Who is Interpolitan Money for?

Interpolitan Money is tailored to non resident individuals and businesses in providing a truly global banking experience. International clients can obtain local UK, EEA and more, domiciled accounts with account opening in 2-3 working days (subject to compliance). Unlike legacy banks, Interpolitan Money provides dedicated relationship managers who understand their clients’ requirements and deliver a bespoke service to achieve their clients’ global banking objectives.

Swift account opening, dedicated relationship managers, multi-jurisdictional accounts, 55+ currencies and payments to 160+ countries all executed seamlessly. If this is what you’re looking for then Interpolitan Money is right for you. Contact us today at banking@interpolitanmoney.com

Can I set up a business account?

Clients can open business accounts. There are several ways to open business accounts with Interpolitan Money.
  • Online
  • By emailing a filled in paper/PDF version.
You can contact us with any questions, or for more support on banking@interpolitanmoney.com

Our support team are available between 9.00am to 5.30pm UK

Do you run Identity Verification checks?

Yes, all customers need to pass an online identity check at their registered address. This is run automatically when you setup your account and will not affect your credit history in anyway. We can confirm your identity by cross-checking your name, address and date of birth you enter on sign up against electronic databases made available to us by a trusted verification partner.

If the details that you entered match the public / open records available, then your account will be instantly verified and you can use your account.

If for any reason we are unable to confirm your details with our partner, you will be asked to provide manual documentation to confirm your identity and your address. Partner check verification does search some credit databases but because we do not check your credit eligibility, neither your credit rating nor credit history will be affected in any way.

You can contact us with any questions, or for more support at banking@interpolitanmoney.com Our support team are available between 9.00am to 5.30pm UK

Do you run Credit Checks?

We do not run credit checks, you will, however, need to pass online identity checks at your registered address. This is run automatically when you setup your account and will not affect your credit history.