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    Question

    Consider the following statements about liberalised

    remittance scheme (LRS): (1) The Scheme enables parents to send money to their child studying abroad. (2) Under the scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year. (3) It was at an all-time high in FY22. Which of the statements given above is/are correct?
    A Only 1 Correct Answer Incorrect Answer
    B Only 2 Correct Answer Incorrect Answer
    C Both 2 and 3 Correct Answer Incorrect Answer
    D Both 1 or 2 Correct Answer Incorrect Answer
    E All statements are correct Correct Answer Incorrect Answer

    Solution

    · This is the scheme of the Reserve Bank of India, introduced in the year 2004. · Under the scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) · Outward remittances under the Reserve Bank of India’s (RBI’s) liberalised remittance scheme (LRS) was at an all-time high in FY22, as it made a strong comeback from the previous year’s tepid show because of Covid-19-led disruptions. · In FY22, outflows under the LRS scheme were to the tune of $19.61 billion, up 54.6 per cent from FY21, data released by the RBI showed. · In FY21, outward remittance under the scheme was $12.68 billion; in FY20 it was $18.76 billion; and in FY19 it was $13.78 billion.

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