Module: | MODULE A: INTERNATIONAL BANKING
Q51: Consider the following statements regarding the consolidation of remittance limits among family members:
1. Family members can club their individual limits to purchase a property abroad, provided they are all co-owners of that property.
2. Family members can club their limits to open a joint bank account abroad, provided they are all joint holders of that account.
3. A resident individual can use their own limit to purchase a property in the name of a relative who has not contributed to the remittance.
Which of the statements given above is or are correct?
2. Family members can club their limits to open a joint bank account abroad, provided they are all joint holders of that account.
3. A resident individual can use their own limit to purchase a property in the name of a relative who has not contributed to the remittance.
Which of the statements given above is or are correct?
✅ Correct Answer: A
🎯 Quick Answer:
Statements 1 and 2 are correct. Statement 3 is incorrect because purchasing property in another person's name without them remitting or co-owning violates the rule.Prohibition: You cannot use the LRS limit of one family member to buy an asset that will be owned exclusively by another member.
This ensures that the ownership of the asset matches the source of funds, preventing Benami or proxy transactions.
Group Compliance: All family members must comply with the Resident Individual criteria.