The Reserve Bank of India (RBI) has tightened the rules by making PAN mandatory for sending money abroad under the Liberalised Remittance Scheme (LRS). The change was announced this year in the bi-monthly monetary policy statement held in June 2018.

Earlier, PAN was not mandatorily required for current account transactions of up to $25,000. The scheme is used by resident Indians to send money abroad for their children's studies and also to invest in foreign stocks and property.