TCS on global credit cards: HDFC Bank says clearing real-time checks tough

Working with industry, quickly building internal systems to facilitate LRS reporting, says lender

HDFC Bank, the largest issuer of credit cards in the country, said validating real time checks on LRS (liberalised remittance scheme) limits with RBI to process transactions is one the key challenges in implementing to the new rule that mandates 20 per cent tax collected at source (TCS) on outward remittances.

The largest private sector lender also said while it is building internal systems quickly to facilitate LRS reporting, also working with industry players to resolve the issues.

“Complying with the regulatory requirement of LRS/TCS involves systemic changes, new development and testing of the core and surround systems,” an HDFC