Current Affairs · Banking Regulations

The Liberalised Remittance Scheme (LRS) serves as a primary gateway for resident individuals to access foreign exchange for a variety of purposes. Statement 1: The scheme is not available to corporations, partnership firms, Hindu Undivided Families (HUF), or Charitable Trusts, as it is exclusively designed for natural persons who are residents of India under FEMA. Statement 2: Resident individuals can utilize the scheme to purchase foreign securities, including units of mutual funds and exchange-traded funds, provided the underlying investments are not in prohibited sectors like gambling or tobacco. Statement 3: Remittances under the scheme can be made in any freely convertible foreign currency, and the Authorized Dealer bank is responsible for ensuring that the person has held the account for at least one year before making a high-value remittance. Statement 4: If an individual remits funds for the purpose of opening a foreign currency account with a bank outside India, the account can be used for making further investments or for meeting expenses while the individual is abroad. Statement 5: The Master Direction on LRS clarifies that banks should not extend any kind of credit facilities or fund-based/non-fund based limits to resident individuals for the purpose of making remittances under the scheme. Statement 6: For remittances intended for medical treatment, the bank can release exchange based on the estimate provided by the doctor in India or the hospital abroad, even if it exceeds the standard 250,000 US Dollar limit. Statement 7: The Tax Collected at Source (TCS) provisions mandate a 20 percent tax on LRS remittances excluding those for education and medical treatment, provided the total remittance in a financial year exceeds 7 lakh rupees. Based on the above, which of the following is true?