RBI EASE NORMS TO BUY IMMOVABLA PROPERTY ABROAD
Reserve Bank today said individuals can also use funds under Liberalised Remittances Scheme (LRS) to buy immovable property abroad. Encouraged by an improvement in the forex market, the Reserve Bank on June 3 had raised annual overseas investment ceiling for individuals to USD 125,000 from USD 75,000. "Banks have been allowed to remit up to USD 125,000 per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both. Further, it is clarified that the Scheme can now be used for acquisition of immovable property outside India," an RBI notification said. The LRS allows residents to acquire and hold shares, debt instruments or other assets outside India without prior approval of the RBI. The RBI had in August last year reduced the ceiling from USD 200,000 to USD 75,000 per person in a financial year under the Liberalised Remittance Scheme (LRS) in view of the worsening current account deficit and a volatile rupee.