Glossary
LRS: meaning, example and why it matters
Liberalised Remittance Scheme: the RBI framework under which resident individuals in India can send money abroad each financial year within a stated limit, including for overseas investments. Limits, reporting and tax collection rules change, so check the RBI and your bank for current terms.
Worked example
Sending ₹4,00,000 abroad in a financial year counts toward the person's annual LRS limit, and extra tax collection can apply. Check the current rules with your bank and the RBI before sending.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
LRS is the framework that governs how much an Indian resident can send abroad for investing, so it affects access to US stocks.
Related terms
See it in practice
Frequently asked questions
Where can I find the current LRS limit?
On the RBI's website and from your authorised bank. We do not state it here because it can change.
Is this page investment advice?
No. LRS is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Start learning free →Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.