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Alteration of ‘Relative’ Definition
June 24 , 2018
2375 days
999
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- The Reserve Bank of India (RBI) has narrowed the definition of relatives over the funds sent abroad under the ‘maintenance of close relative’ category of the Liberalised Remittance Scheme (LRS)to check the flow of funds.
- Hence, funds under the ‘maintenance of close relative’ category can be sent only to immediate relatives such as parents, spouses, children and their spouses.
- This has brought about by defining ‘relatives’ under the Companies Act, 2013 instead of the same act of 1956.
- Outward remittances under maintenance of close relatives shot up to almost $3 billion in 2017-18 from a mere $174 million in 2013-14.
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