No More Saving Money in Bank Account Abroad! Here’s why

No More Saving Money in Bank Account Abroad! Here’s why

Apr 28, 2023

Rajeev Kumar

If you have legitimate money outside India in the form of foreign exchange, you can’t keep it parked in a bank account abroad forever. Read on to find details of the new rule

Revised LRS regulations restrains individuals from keeping their money in offshore bank accounts for more than six months.

Unutilised foreign exchange, must be brought back/repatriated or surrendered within 180 days of realisation.

There was no such rule earlier, which allowed affluent citizens to park foreign exchange in bank accounts abroad.

The revised LRS rules were announced by RBI in August 2022.

The rule says that unutilised foreign exchange must be brought back by the individual within 180 days of realisation.

The fall out of this rule is that individuals can't accumulate wealth in the form of bank balance outside India, says an expert.

However, there are several ambiguities in the revised rules that have put wealthy Indians in a fix. Click on the below link to learn more