Capitalmind Mutual Fund CEO Deepak Shenoy called for India to ease paperwork for money entering and leaving the country, arguing that authorities should request remittance information only when transfers exceed ₹5 crore. His Oct. 28 post on X did not say whether the threshold would apply to each payment or to an individual's transfers over time.
Shenoy also urged simpler know-your-customer (KYC) checks for non-resident Indians and said consulates should not have to be involved. “I'd even remove the entire reporting requirements for both outflows and inflows completely,” he wrote.
The Reserve Bank of India (RBI) permits resident individuals, including minors, to send up to $250,000 in a financial year running from April through March under its Liberalised Remittance Scheme (LRS). Eligible transactions include travel, education, medical care and overseas investment. The RBI says the scheme began in 2004 with a $25,000 ceiling, which reached $250,000 in 2015.
Zee Business reported, citing unnamed sources, that the RBI had proposed a ₹50 lakh (₹5 million) sub-limit for some LRS transfers. The report said business travel and pilgrimages could be covered, while education and medical expenses were likely exclusions. It cited curbing dollar outflows and supporting foreign-exchange reserves as the proposal's rationale. The report gave no effective date.
A September 2024 RBI circular ended monthly consolidated LRS filings by Category-I authorized dealer banks. Those banks still must submit transaction reports daily, by the next working day. The circular concerns bank submissions and does not change customer KYC obligations.
RBI data show residents sent $2.739 billion abroad through the LRS in August 2026, with travel accounting for nearly 60%; the figures are preliminary. EconoTimes previously reported on August 2026 LRS remittances.
If adopted, a sub-limit could reduce the amount available to people making covered transfers; Zee Business did not identify who might benefit. The report gave no effective date.
