# Schedule III — RBI Approval (Individual): The LRS
Schedule III governs current account transactions where the RBI is the approving authority. For individuals, this is implemented through the Liberalised Remittance Scheme (LRS).
## The Liberalised Remittance Scheme
> Any resident individual may remit up to US $2,50,000 per financial year for permitted current/capital account transactions — without RBI approval.
This is a per-person, per-year limit, aggregated across purposes. Above this requires RBI approval.
## Eligible purposes (Individual)
#
Purpose
Comment
1
Gift
To any person abroad
2
Private visit
Except Nepal and Bhutan
3
Donation
To eligible foreign recipients
4
Going abroad for employment
5
Emigration / Education / Medical
Up to estimate — no approval even beyond US $250k if backed by estimate from institution/hospital
6
Family maintenance expenses
Up to net salary of deputed staff (excess needs approval). Applicable to N-ROR staying in India up to 3 years under this Act. Applicable to foreigners on deputation. Pakistani nationals excluded.
7
Business / conference / specialised training / patient maintenance / accompanying attendant expenses
### Important nuances
Education / Medical / Emigration: Beyond LRS limit, actual estimate from foreign university/hospital can be remitted without further approval.
Family Maintenance: Designed for foreign nationals deputed in India. Up to their net Indian salary, freely remittable home. Pakistani nationals excluded.
Mr. A gifts US $200,000 to his son studying in the US.
Answer: Within LRS (US $250k/year) → freely permitted, no RBI approval.
### Example 2
Example 2 — Medical treatment abroad
Mrs. B remits US $4,00,000 for cancer treatment in Singapore, backed by an estimate from a Singapore hospital.
Answer: Medical remittances permitted up to estimate — no RBI approval needed even beyond standard LRS.
### Example 3
Example 3 — Pakistani national on deputation in India
A Pakistani national in India on deputation wants to remit family maintenance.
Answer:Pakistani nationals are excluded from the family maintenance facility under Schedule III → not allowed under this head.
### Example 4
Example 4 — Tourism in Nepal
Mr. C plans a Nepal vacation and wants to buy forex.
Answer: Nepal/Bhutan visits are excluded from the private visit head — no forex required (rupee-area).
⚠️ Common exam mistakes
Applying the US $250,000 LRS limit to education/medical when the estimate is higher — the estimate itself is the limit.
Including Pakistani nationals in family-maintenance facility — they are explicitly excluded.
Treating Nepal/Bhutan visits as needing forex — they are excluded.
Treating LRS as a per-transaction limit — it is per individual, per financial year, aggregated across all purposes.
Bare-Act text Schedule III (Rule 5) · Foreign Exchange Management (Current Account Transactions) Rules, 2000 and RBI A.P. (DIR Series) Circulars on LRS · click to expand
Drawal of foreign exchange by any person for the following purposes is permissible up to limits specified, beyond which RBI approval is required: (i) private visits to any country (except Nepal and Bhutan); (ii) gift remittance; (iii) donation; (iv) going abroad for employment; (v) emigration; (vi) maintenance of close relatives abroad; (vii) travel for business, attending a conference or specialised training, meeting expenses for medical check-up of, or accompanying as attendant to, a patient going abroad for medical treatment/check-up; (viii) expenses in connection with medical treatment abroad; (ix) studies abroad; (x) any other current account transaction. The Liberalised Remittance Scheme permits remittance up to US $250,000 per financial year per resident individual for any permissible current or capital account transactions.