Module: General Practice
Q63: [Updated Jan 2026] With effect from January 1, 2026, how are Authorized Dealer (AD) Category-II entities and Full Fledged Money Changers (FFMCs) required to report "LRS Daily Returns"?
✅ Correct Answer: C
1. The New Mandate: To enhance real-time monitoring of limits under the Liberalised Remittance Scheme (LRS), the RBI mandated that all AD Category-II entities and FFMCs must file the 'LRS Daily Return' directly on the CIMS portal.
2. Effective Date: This instruction became mandatory from January 1, 2026.
3. The Shift: Previously (Option A), these entities reported LRS transactions to AD Category-I banks, creating a lag.
The new system allows them to check the remitter's PAN-wise limit utilization in real-time on CIMS before processing the transaction.
2. Effective Date: This instruction became mandatory from January 1, 2026.
3. The Shift: Previously (Option A), these entities reported LRS transactions to AD Category-I banks, creating a lag.
The new system allows them to check the remitter's PAN-wise limit utilization in real-time on CIMS before processing the transaction.