Indians Can Invest Up To $2,50,000 Annually Overseas

MUMBAI: Encouraged by foreign exchange reserves touching record levels, the Reserve Bank on Tuesday doubled the annual overseas investment ceiling for individuals to $2,50,000.

"On a review of the external sector outlook and as a further exercise in macro-prudential management, it has been decided to enhance the limit under the Liberalised Remittance Scheme to $2,50,000 per person per year," the RBI said in its Bi-Monthly Monetary Policy Statement.

In view of the worsening current account deficit and a volatile rupee, the RBI had in August 2013 reduced the ceiling from $ 200,000 to $ 75,000 per person in a year under the LRS. Consequently, with improvement in forex situation, it was raised to $ 1,25,000 in June 2014.

The LRS allows residents to acquire and hold shares, debt instruments or other assets outside India without prior approval of the RBI.

In mid-January, India's foreign exchange reserves touched a new life-time high at $ 322.135 billion, driven by higher foreign fund inflows and lower forex outgo on the back of a massive fall in global crude prices.
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