Module: General Practice
Q8: Consider the following statements regarding the revised forex reporting framework:
Statement 1: The primary responsibility for the accuracy and timely submission of forex transaction reports under FEMA rests exclusively with the designated AD Category-I banks, not the remitting customer.
Statement 2: The new draft requires AD banks to implement a mandatory Maker-Checker system integrated with RBI’s central data repository for all high-value transactions.
Statement 3: Stakeholders have been given a deadline to submit their feedback on the draft reporting instructions by March 15, 2026.
Statement 4: The aggregate limit for Liberalised Remittance Scheme (LRS) reporting without requiring additional granular documentary uploads in the new system is capped at USD 250,000 per financial year.
Which of the above statements is/are correct?
Statement 2: The new draft requires AD banks to implement a mandatory Maker-Checker system integrated with RBI’s central data repository for all high-value transactions.
Statement 3: Stakeholders have been given a deadline to submit their feedback on the draft reporting instructions by March 15, 2026.
Statement 4: The aggregate limit for Liberalised Remittance Scheme (LRS) reporting without requiring additional granular documentary uploads in the new system is capped at USD 250,000 per financial year.
Which of the above statements is/are correct?
✅ Correct Answer: D
🎯 Quick Answer:
All statements are correct. (Option D)The "Maker-Checker" concept is an internal control mechanism where one individual initiates a transaction (maker) and another verifies it (checker) to prevent fraud.
Structural Breakdown: The LRS allows resident individuals to remit a certain amount of money across borders freely.
However, AD banks must meticulously categorize the "purpose code" of these remittances (e.g., travel, education) in their reports to the RBI.
Historical / Static Context: The Liberalised Remittance Scheme (LRS) was introduced in 2004 with an initial limit of USD 25,000, which has progressively evolved.
The Dynamic Update (NEW) & Data: The latest draft introduces qualitative system mandates, specifically the mandatory Maker-Checker API integration (Statement 2). The hard facts tested include the public feedback deadline of March 15, 2026 (Statement 3), and the foundational LRS reporting threshold of USD 250,000 per financial year (Statement 4), which dictates the tier of documentation required in the new digital reporting fields.