RBI Discontinues Monthly LRS Reporting Requirement for Banks
The Reserve Bank of India (RBI) has announced the discontinuation of the monthly reporting requirement for the Liberalised Remittance Scheme (LRS) for Authorised Dealer Category-I (AD Category-I) banks, effective from September 2024. Previously, these banks were required to submit monthly returns detailing the number of LRS applications and the total amount remitted, as specified in earlier circulars. Going forward, banks will only need to report transaction-wise data on a daily basis through the Centralised Information Management System (CIMS), with a ‘NIL’ report if no transactions occur. This change aims to streamline reporting processes, and all previous related circulars have been withdrawn. Banks are instructed to update their practices accordingly, and the Master Direction on reporting under the Foreign Exchange Management Act, 1999 will be revised to incorporate this update.
Reserve Bank of India
RBI/2024-25/74A.P. (DIR Series) Circular No. 16 Dated: September 06, 2024
ToAll Authorised Dealer Category-I banks
Madam/Sir,
Liberalised Remittance Scheme (LRS) for Resident Individuals- Discontinuation of Reporting of monthly return
Attention of all Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 36 dated April 04, 2008 read with A.P. (DIR Series) Circular No. 11 dated December 22, 2023, in terms of which, AD Category-I banks were required to furnish information on the number of applications received and total amount remitted under LRS on a monthly basis in the Centralised Information Management System (CIMS).
2. On a review, it has now been decided to discontinue the requirement for submission of LRS monthly return by AD Category-I banks. Accordingly, from the reporting month of September 2024, AD Category-I banks shall not submit LRS monthly return (Return code : R089).
3. AD Category-I banks, henceforth, will be required to upload only transaction-wise information under LRS daily return (CIMS return code: R010) at the close of business of the next working day on CIMS (URL: https://sankalan.rbi.org.in). In case no data is to be furnished, AD Category-I banks shall upload a ‘NIL’ report.
4. Accordingly, instructions issued vide circulars A.P. (DIR Series) Circular No. 36 dated April 04, 2008, A.P. (DIR Series) Circular No. 106 dated May 23, 2013, A.P. (DIR Series) Circular No. 23 dated April 12, 2018, A.P. (DIR Series) Circular No. 07 dated June 17, 2021 and A.P. (DIR Series) Circular No. 11 dated December 22, 2023 stand withdrawn with immediate effect.
5. AD Category-I banks shall bring the contents of this circular to the notice of their constituents. The Master Direction – Reporting under Foreign Exchange Management Act, 1999 is being updated to reflect this change.
6. The directions contained in this circular have been issued under Section 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(N. Senthil Kumar)General Manager
