RBI makes PAN mandatory for Current Account Transactions under LRS

By July 18, 2018 December 20th, 2019 No Comments

The Reserve Bank of India (RBI) had made Permanent
Account Number (PAN) mandatory for making all remittances under the Liberalised
Remittance Scheme (LRS) for current account transactions of up to USD 25,000 by
notification dated June 19, 2018.  In
furtherance, it has been decided that the definition of relative shall be
aligned with the definition of ‘relative’ under the Companies Act 2013, thereby
narrowing its scope.
The system for daily reporting of individual
transactions under the LRS by authorized banks was introduced by RBI on April
05, 2018. Prior to the notification, PAN card was only mandatory for capital
account transactions.  Currently, under
the LRS, authorized banks may allow remittance by resident individuals up to
USD 2,50,000 per financial year for current or capital account transaction or a
combination of both.

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