The Complete Guide to RBI's LRS: Sending University Fees from India

Meta Forex Intelligence Report | Updated: March 2026

If you are an Indian resident navigating the complexities of sending funds abroad—whether for a child's university education in the US/UK, foreign property investment, or medical treatment—the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS) is the governing framework dictating every move you make. In this exhaustive guide, our Bengaluru-based compliance team at Meta Forex breaks down exactly how much you can send, the hidden TCS (Tax Collected at Source) traps, and the most efficient way to execute a TT (Telegraphic Transfer).

What is the LRS Limit for 2024-2026?

Under the current RBI protocols, all resident individuals (including minors) are permitted to freely remit up to $250,000 USD (or its equivalent in GBP, EUR, CAD, etc.) per financial year. This cap applies universally across all permissible current or capital account transactions.

Permissible Uses Under LRS:

• Overseas Education: Wiring university tuition fees or maintaining a student abroad.
• Medical Treatment: Covering international hospital bills and relative travel.
• Tourism & Travel: Funding private leisure trips.
• Family Maintenance: Sending living expenses to close relatives residing overseas.
• Investments: Purchasing foreign real estate or equity shares.

The 20% TCS Rule: What You Must Know

Recent mandates by the Ministry of Finance dramatically altered the Tax Collected at Source (TCS) structure. Standard remittances (like tourism or investments) now attract a hefty 20% TCS on amounts exceeding ₹7 Lakhs per financial year.

The Crucial Exception for Education: If you are remitting funds specifically for overseas education, and the source of funding is an education loan obtained from an approved financial institution in India, the TCS drops drastically to just 0.5%. If the education is funded out-of-pocket, the TCS is capped at 5% for amounts over ₹7 Lakhs. At Meta Forex, our compliance officers audit your Form A2 documentation rigorously to ensure you never overpay on these government levies.

How to Execute an Outward Remittance in Bengaluru

Sending a TT (Telegraphic Transfer) through traditional Indian banks often incurs hidden currency spread markups (up to 2%) and unpredictable SWIFT routing delays. As an RBI Authorized FFMC headquartered in NR Colony, Basavanagudi, Meta Forex bypasses retail banking bottlenecks.

1. Rate Locking: We secure wholesale, live-market exchange rates drastically lower than bank bulletin boards.
2. Form A2 Processing: We handle the complex RBI declaration paperwork entirely on your behalf.
3. Same-Day Routing: Funds hit the foreign university or recipient account typically within 24-48 hours via premium SWIFT corridors.