RBI Alters ‘Relative’ Definition to Check Outward Remittances

PC- The Hindu
Concerned over funds sent abroad under the ‘maintenance of close relative’ category of the Liberalised Remittance Scheme (LRS), the Reserve Bank of India (RBI) has narrowed the definition of relatives to check the flow of funds. Hence, funds under the ‘maintenance of close relative’ category can be sent only to immediate relatives such as parents, spouses, children and their spouses.

This has brought about by defining ‘relatives’ under the Companies Act, 2013 instead of the same act of 1956. Outward remittances under maintenance of close relatives shot up to almost $3 billion in 2017-18 from a mere $174 million in 2013-14. In fact, funds sent under this category have more than doubled since 2015-16.
Source- The Hindu

Static/Current Takeaways Important for SBI PO/Clerk Exam 2018-
  • Urjit Patel- 24th Governor of RBI, Headquarters- Mumbai, Established on- 1st April 1935, in Kolkata.