India maintains $250,000 annual LRS limit for overseas card spending

India keeps current card-spend and travel limits in place

India’s commerce ministry said on May 11 that there are no immediate plans to restrict international credit card spending or foreign travel. The clarification pushed back weekend rumors tied to rupee weakness and Prime Minister Narendra Modi’s call for economic self-reliance.

The Reserve Bank of India’s Liberalised Remittance Scheme still sets the annual cap at $250,000 per resident individual for the April-to-March financial year. That limit covers overseas card spending, travel, education and other permitted remittances and any amount above it needs prior RBI approval.

Who this covers

The rules affect Indian residents who pay for flights, hotels, tours or other expenses abroad with domestic cards. That includes digital nomads, business travelers, families and students who rely on bank transfers or cards for overseas costs.

Commerce ministry sources said no proposal is on the table in either the finance ministry or the commerce ministry to tighten foreign transactions. Non-residents aren't covered by these outbound limits.

What travelers still need to watch

The spending cap stays the same, but reporting rules still matter. Card spending linked to LRS counts toward the annual ceiling and high annual spends above Rs 10 lakh are reported to the Income Tax Department. Separate rules in force since April 1 also require PAN linking for cards and 2-factor authentication for digital payments.

Travelers making large remittances still need the usual paperwork, including Form A2 and KYC for approved transfers. Read our full India guide for the complete picture. For more visa updates, keep an eye on related policy changes.