RBI Discontinues Monthly Reporting Requirement for Liberalised Remittance Scheme (LRS)
Overview of LRS Reporting RBI Updates
The Reserve Bank of India (“RBI”) had vide circular No. 16 announced the discontinuation of the monthly LRS reporting RBI requirement for the Liberalised Remittance Scheme (“LRS”) for Authorised Dealer (AD) Category-I banks, effective from September 2024 to streamline reporting of LRS RBI and FEMA reporting requirements.
Discontinuation of Monthly Reporting of LRS
Accordingly, all previous relevant circulars have been withdrawn and the Master Direction on reporting under the Foreign Exchange Management Act, 1999 (“FEMA”) has been revised to incorporate this Liberalised Remittance Scheme update.
Impact on AD Category-I Banks
Earlier, AD Category-I banks LRS reporting required monthly returns detailing the number of LRS applications and the total amount remitted, as specified in earlier circulars.
Revised FEMA Reporting Requirements
Post issuance of this Circular, AD Category-I banks reporting shall require uploading only transaction-wise information under LRS daily return at the close of business of the next working day on RBI CIMS LRS reporting (URL: https://sankalan.rbi.org.in). In case no data is to be furnished, AD Category-I banks shall upload a ‘NIL’ report.
Source:
Reserve Bank of India, “Liberalised Remittance Scheme (LRS) for Resident Individuals Discontinuation of Reporting of monthly return”, RBI/2024-25/74, A.P. (DIR Series) Circular No. 16, dated 06/09/2024.
The official circular is available at: