Indians are bringing back money deposited in foreign accounts, know the reason

For many years, many rich people in India have deposited a lot of their money in foreign accounts to avoid tax, hide their money and for some other reasons. Often this is discussed, but there is no result of that discussion. But now this is changing. Now many rich people of the country have started bringing their money deposited in foreign accounts back to India.

The question that naturally comes to mind is why many Indians are bringing back their money deposited in foreign accounts? The reason for this is that many foreign banks are now requesting Indian customers to close their bank accounts. The reason for this is that many banks have increased the minimum balance amount for foreign customers. Besides, RBI has also cracked down on keeping inactive funds abroad. For these reasons, international banks are closing the bank accounts of Indians.

In the last two months, two big banks in Britain, one bank in Switzerland and one big bank in UAE have closed the accounts of more than two dozen Indians. According to RBI rules, it is necessary to invest or bring back the funds lying in foreign accounts within 180 days.

Under the Liberalized Remittance Scheme (LRS) of RBI, up to 2.5 lakh dollars can be invested abroad in a year. But some big foreign banks have made the minimum balance of 10 lakh dollars. Due to the LRS limit, Indians are not able to send much money abroad. For this reason, foreign banks are closing their accounts. Besides, the income received by foreign banks in the form of fees has also decreased. This has increased the difficulties of those Indians who have accounts in foreign banks. According to the new rules of LRS, investment in unlisted debt securities is not allowed. In such a situation, many people do not want to take any risk and are just bringing back the money lying in foreign accounts.