Banking · LRS Guidelines

Evaluate the following statements regarding the operational guidelines of the Liberalised Remittance Scheme (LRS) and its applicability as of 2025: Statement 1: The LRS is a facility provided by the RBI that allows all resident individuals, including minors, to freely remit up to 250,000 US Dollars per financial year for any permitted current or capital account transaction. Statement 2: Non-Resident Indians are eligible to avail the LRS facility for remitting funds from their Indian income to their overseas accounts, provided they have maintained their NRI status for more than five consecutive years and have a valid PAN card. Statement 3: Residents are permitted to make a gift in Indian Rupees to an NRI relative by crediting the amount to the NRI's NRO account, and this transaction is counted towards the resident's overall LRS limit. Statement 4: For any remittance exceeding 700,000 Rupees under the LRS in a financial year, the bank is required to collect Tax Collected at Source (TCS) at a rate of 20 percent, except for remittances made specifically for the purpose of education or medical treatment. Which of the combinations of the above statements is entirely accurate?