Economics · Economy
Regarding the procedural requirements for processing an LRS request, which condition must an Authorized Dealer Category I (AD Bank) enforce?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Banks are allowed to waive the requirement of a PAN card for remittances made towards medical emergencies.
- 2The AD bank must ensure that the remitter has maintained an account for at least one year, or conduct enhanced due diligence, and obtain the PAN for all LRS transactions.✓
- 3It is mandatory to obtain a certificate from a Chartered Accountant for every remittance regardless of the amount.
- 4The bank is required to verify the source of funds only if the remittance amount exceeds USD 100,000 in a single transaction.
Correct answer
The AD bank must ensure that the remitter has maintained an account for at least one year, or conduct enhanced due diligence, and obtain the PAN for all LRS transactions.
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