RBI 180-day LRS rule tightens card access for Indian residents
If you're a wealthy resident Indian with an offshore bank account, getting (or renewing) an international credit card just got trickier.
Banks in places like Zurich, Singapore, London, and West Asia are tightening up because of the Reserve Bank of India (RBI)'s 2022 rule change.
Now, the LRS amount remitted has to be spent or invested within 180 days, or sent right back home.
Banks reassess card issuance under LRS
The RBI's Liberalized Remittance Scheme (LRS) is all about stopping big foreign currency outflows and making sure people don't park large sums overseas.
This has banks rethinking who gets these cards and how accounts are managed.
Minors face extra hurdles since they have fewer ways to use funds abroad within the deadline.
Plus, there's a loophole: foreign-issued cards still dodge India's tax on overseas spending (TCS).