LRS stands for Liberalized Remittance Scheme, which is a scheme introduced by the Reserve Bank of India (RBI) to facilitate resident individuals to remit up to USD 2,50,000 or its equivalent abroad per financial year (April-March) for any permissible current or capital account transaction, or a combination of both. The LRS was introduced on February 4, 2004, with a limit of USD 25,000, and the limit has been revised in stages consistent with prevailing macro and micro-economic conditions. The scheme is available to all resident individuals, including minors, and can be used for various purposes such as private visits, purchase of property abroad, making investments abroad, going abroad on employment, setting up wholly-owned subsidiaries and joint ventures outside India, emigration, loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives, maintenance of close relatives abroad, business trips, medical treatment abroad, and facilities available to students for pursuing their studies abroad. The LRS does not apply to corporates, partnership firms, HUF, trusts, etc. . The LRS declaration form must be countersigned by the minor’s natural guardian in case of a remitter being a minor. The scheme is not available to non-residential Indians (NRIs) as they are not supposed to have any savings accounts in Indian banks, but they are permitted to transfer funds from NRO, NRE, and FCNR accounts abroad as per the regulations and requisite documentation.