PAN mandatory for all remittances under Liberalized Remittance Scheme (LRS), includin for Permissibile Current Account Transactions of upto USD 25,000: RBI
RBI has issued directions for mandatory PAN quoting in the case of all remittances under Liberalized Remittance Scheme (LRS), including for permissible Current Account transactions of upto USD 25,000. Also definition of relative has been aligned with the Companies Act, 2013 (from CA 1956), as under:
1. Please refer to paragraph 18 of the Statement on Developmental and Regulatory Policies of the Second Bi-monthly Monetary Policy Statement for 2018-19 released on June 6, 2018. As indicated therein, it has been decided that furnishing of Permanent Account Number (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 Liberalised Remittance Scheme (LRS).
2. Further, in the context of remittances allowed under LRS for maintenance of close relatives, it has been decided, in consultation with Government, to align the definition of ‘relative’ with the definition given in Companies Act, 2013 instead of Companies Act, 1956.
3. Master Direction No. 7/2015-16 dated January 01, 2016 on LRS is being updated simultaneously to reflect the above changes.
4. The directions contained in this circular have been issued under Sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.