Indians can deposit up to Rs41 lakh in overseas banks

Under the Liberalized Remittance Scheme, Indians can deposit up to Rs41lakh in foreign banks without RBI approval, by just quoting their PAN number
PTI

Mumbai: As part of efforts to flush out excess foreign capital, Reserve Bank has allowed resident Indians to open accounts in banks outside the country and transfer up to $100,000 (Rs 41 lakh) a year in them without its approval.

Individuals can now open, maintain and hold foreign currency accounts with banks outside India, the Reserve Bank said, while clarifying the provisions of the Liberalizsed Remittance Scheme (LRS).

The RBI clarification comes on the heels of the union government tightening External Commercial Borrowings (ECBs) to restrict inflow of foreign capital to prevent appreciation of the Indian currency.

RBI and the Centre have been encouraging people and corporates to invest overseas to tide over the problems created by excessive inflow of foreign capital. [Read more]