The Reserve Bank of India (RBI) has released a circular, A.P. (DIR Series) Circular No. 06, on June 22, 2023, addressing all authorized persons. The circular informs authorized persons about an amendment to the Liberalised Remittance Scheme (LRS) regarding remittances to International Financial Services Centres (IFSCs). This amendment now allows resident individuals to make remittances under the purpose of ‘studies abroad’ for payment of fees to foreign universities or institutions located in IFSCs.
Reserve Bank of India
RBI/2023-24/45
A.P. (DIR Series) Circular No. 06 Dated: June 22, 2023
To
All Authorised Persons
Madam / Sir
Remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS)
Attention of Authorised Persons is invited to A.P. (DIR Series) Circular No. 11 dated February 16, 2021 and A.P. (DIR Series) Circular No. 03 dated April 26, 2023 on “Remittances to International Financial Services Centres (IFSCs) in India under the Liberalised Remittance Scheme (LRS)”.
2. Presently, remittances to IFSCs under LRS can be made only for making investments in securities in terms of A.P. (DIR Series) Circular No. 11 dated February 16, 2021. In view of the gazette notification no. SO 2374(E) dated May 23, 2022 issued by the Central Government, it is directed that Authorised Persons may facilitate remittances by resident individuals under purpose ‘studies abroad’ as mentioned in Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000 for payment of fees to foreign universities or foreign institutions in IFSCs for pursuing courses mentioned in the gazette notification ibid.
3. Authorised Persons shall bring the contents of this circular to the notice of their constituents and customers.
4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Ajay Kumar Misra)
Chief General Manager-in-Charge
