Liberalised Remittance Scheme (LRS) for resident individuals
Allows resident individuals to remit up to USD 250,000 per FY for permissible capital and current account transactions, with TCS applicable above ₹7 lakh.
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Difference between Capital and Current Account transactions under FEMA
Capital account: alters assets/liabilities of resident outside India (FDI, ODI, ECB, NRI deposits). Current account: rest (trade, services, dividends, salaries).
FDI reporting — FC-GPR and FC-TRS
FC-GPR: report receipt of FDI and allotment within 30 days. FC-TRS: report transfer of shares between resident and non-resident within 60 days.
Automatic Route vs Approval Route for FDI
Automatic: no prior approval; only post-investment reporting. Approval route: government clearance via FIFP for sensitive sectors and from land-border countries.
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Foreign-currency or INR-denominated borrowings by eligible Indian entities, under tenor / pricing / end-use restrictions per RBI Master Direction.
Overseas Direct Investment (ODI) under FEMA
Indian entities can invest abroad up to 400% of net worth (automatic) under FEM (OI) Rules 2022. New ODI/OPI bifurcation, financial services restrictions and Form FC.