This has reference to the recent RBI circular pertaining to reporting of all transactions under LRS by Banks. We wish to inform you that RBI has released a Statement on Developmental and Regulatory Policies. An extract of the statement pertaining to LRS reporting is mentioned below.
“18. Harmonisation of Data and Definitions for the Liberalised Remittance Scheme
Pursuant to the announcement made in the first bi-monthly Monetary Policy Statement 2018-19 on April 5, 2018, a system for daily reporting of individual transactions under the Liberalised Remittance Scheme (LRS) by Authorised Dealer (AD) banks has been put in place. This system enables the AD banks to view the remittances already sent by an individual during the financial year, thus improving monitoring and ensuring compliance with the LRS limits. Since the said reporting system uses the Permanent Account Number (PAN) of the remitter as a Unique Identifier to aggregate the remitter-wise data, it has been decided that furnishing of PAN, which hitherto was not to be insisted upon while putting through permissible current account transactions of up to USD 25,000, shall now be mandatory for making all remittances under LRS. Further, in the context of remittances allowed under LRS for maintenance of close relatives, it has been decided to align the definition of ‘relative’ with the definition given in Companies Act, 2013 instead of Companies Act, 1956.”
Policy document is enclosed for your ready reference.
In line with the above change,
- It is now mandatory to submit PAN (of the remitter and not the payer) along with the remitter details in order to process the remittance.
- For all aggregated remittances (like Tour Operator remittances) , List of Passengers and their PANs must be submitted in a separate excel sheet along with the transaction reference number.