Isn’t this only if one exceeds the limits set by the LRS scheme I.e. $250K/yr?
That was my interpretation of 4 (a) (b) in the following doc ( I am reading this for the first time, so my interpretation may be wrong).
The general rule is that all current account tranactions are freely permitted unless specifically prohibited and all capital transactions are prohibitted unless specifically permitted.
The lmit of USD250k is applicable even if a particular transaction is specifically allowed.
Example. Investment in foreign securities like equity shares is allowed even though its a capital transaction without taking any permision. However if the amount of investment exceeds USD250k, then specific permission from RBI is required.
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