Module: | MODULE A: INTERNATIONAL BANKING
Q63: Consider the following statements regarding the import of goods:
1. LRS can be used for the import of objects of art, provided the import follows the Foreign Trade Policy.
2. Remittances for imports under LRS are not counted towards the USD 250,000 limit as they are trade transactions.
3. The limit for such imports is restricted to USD 50,000 per year.
Which of the statements given above is or are correct?
2. Remittances for imports under LRS are not counted towards the USD 250,000 limit as they are trade transactions.
3. The limit for such imports is restricted to USD 50,000 per year.
Which of the statements given above is or are correct?
✅ Correct Answer: A
🎯 Quick Answer:
Statement 1 is correct. Statements 2 and 3 are incorrect.Structural Breakdown: Permissibility: Residents can use LRS to purchase goods abroad (like art, books, or collectibles) for personal use, provided the item is not banned under the Foreign Trade Policy (FTP). Counting: These payments are counted towards the aggregate USD 250,000 limit.
They are not exempt trade transactions because they are done by individuals for personal purposes, not by firm or companies for commercial trade.
No Sub-limit: There is no specific USD 50,000 sub-limit; the entire USD 250,000 can be used if desired.