RBI Discontinues Monthly Reporting Requirement for Liberalised Remittance Scheme (LRS)

The Reserve Bank of India (“RBI”) had vide circular No. 16 announced the discontinuation of the monthly reporting requirement for the Liberalised Remittance Scheme (“LRS”) for Authorised Dealer Category-I banks (“AD Category-I”), effective from September 2024 in order to streamline reporting processes.

Accordingly, all previous relevant circulars have been withdrawn and the Master Direction on reporting under the Foreign Exchange Management Act, 1999 (“FEMA”) has been revised to incorporate this update.

Earlier, AD Category-I banks were required to submit monthly returns detailing the number of LRS applications and the total amount remitted, as specified in earlier circulars.

Post issuance of this Circular, AD Category-I banks shall be required to upload only transaction-wise information under LRS daily return at the close of business of the next working day on Centralized Information Management System (“CIMS”) (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:

 https://www.pdicai.org/Docs/RBI-2024-25-74_992024155152500.pdf