India Loosens Currency Control Restrictions, Paving the Way for Easier EB-5 Investment -

India Loosens Currency Control Restrictions, Paving the Way for Easier EB-5 Investment

Nelson Lee

According to an article published this week by leading Indian Business daily The Economic Times, foreign investment for Indian residents is now much easier.

The Reserve Bank of India (“RBI”) has announced that it has relaxed its monetary policy to enable foreign remittances of up to $250,000 per person, per financial (fiscal) year, under its Liberalized Remittance Scheme (“LRS”).

RBI governor Raghuram Rajam is quoted as saying, “On a review of the external sector outlook and as a further exercise in macro prudential management, it has been decided to enhance the limit under the LRS to $250,000 per person per year.” In 2013, remittances were capped at $75,000 and increased to $125,000 only recently in June 2014. India’s financial year runs from April 1 to March 31; thus under this new regime, an EB-5 investor could meet his or her minimum capital investment relatively easily come this spring.

This is a welcome change for movement of capital out of India and into EB-5 projects. As we have covered previously, many countries’ currency restrictions can complicate the tracing of EB-5 funds from investor to project, requiring the use of intermediaries or controversial banking programs such as China’s You Hui Tong. Generally speaking however, USCIS has not questioned the use of such intermediaries, provided that all EB-5 funds can be fully traced.


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