Q. With reference to Liberalised Remittance Scheme (LRS) consider the following statements:
1.It is a scheme that enables Indian residents to remit funds abroad for certain specified purposes.  
2.The scheme also aims to promote and encourage non-residents to invest in India and promote outward remittances from India.
3.In order to avail the benefit of the LRS, the individual need not be an Indian resident.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A
Notes:

Explanation –

Statement 1 and 2 are correct. LRS is a scheme that enables Indian residents to remit funds abroad for certain specified purposes. The scheme also aims to promote and encourage non-residents to invest in India and promote outward remittances from India.

Statement 3 is incorrect. In order to avail the benefit of the LRS, the individual must be an Indian resident as defined under the Foreign Exchange Management Act (FEMA).

Source: ForumIAS

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