Mint explains the implications of this for your foreign exchange transactions. The new project will allow users of either country’s payments system to transfer money to the other without on-boarding themselves on the other system. This can significantly cut down on the time taken and the costs of foreign exchange transfers to Singapore. The bank provides a foreign exchange quote, which can be quite steep for individuals sending small amounts of money. In addition, tax collected at source (TCS) of 5% is imposed on LRS transfers above ₹7 lakh.

Source: Mint September 16, 2021 17:55 UTC