Module: | MODULE A: INTERNATIONAL BANKING
Q62: Consider the following statements regarding remittances for Emigration:
1. A resident individual can remit up to the amount prescribed by the country of emigration or USD 250,000, whichever is higher.
2. This facility is available for incidental expenses such as initial settlement costs.
3. Once the individual becomes a Non-Resident, they are no longer eligible for LRS and must use the NRO account facilities.
Which of the statements given above is or are correct?
2. This facility is available for incidental expenses such as initial settlement costs.
3. Once the individual becomes a Non-Resident, they are no longer eligible for LRS and must use the NRO account facilities.
Which of the statements given above is or are correct?
✅ Correct Answer: D
🎯 Quick Answer:
All statements (1, 2, and 3) are correct.Structural Breakdown: The Limit: The basic limit is USD 250,000.
However, if the destination country requires a higher amount (e.g., for a specific investment visa tier), the bank can allow the higher amount upon proof.
Status Change: LRS is strictly for Residents.
Once a person emigrates and their status changes to Non-Resident, they lose access to LRS.
Future remittances must be made from their NRO Account (subject to the USD 1 Million Scheme per financial year).