Outward remittances under RBI's LRS fall 4.4% to $2.3 billion in May 2025

RBI data shows decline in remittances for travel and education abroad while property and equity investments rise under Liberalised Remittance Scheme in May 2025

Outward remittances under Reserve Bank of India’s (RBI)’s Liberalised Remittance Scheme (LRS) slipped 4.4 per cent in May 2025 to $2.3 billion from the year ago period due to drop in international travel and overseas education.

 

According to the latest RBI bulletin, total remittances under the scheme stood at $2.3 billion in May 2025, a 4.4 per cent drop from May 2024.

 

The LRS was introduced in 2004, allowing all resident individuals to remit up to $250,000 per financial year for any permissible current or capital account transaction, or a combination of both, free of charge. In the initial phase, the scheme was introduced with a limit of $25,000, which was gradually revised.

 

In the reported month, remittances for international travel were marginally down to $1.38 billion from $1.4 billion in the year ago period. Remittances for the studies abroad dropped 29 per cent Y-o-Y to $149.8 million. 

 

Meanwhile, remittances for purchase of immovable property rose 92.21 per cent Y-o-Y to $41.69 million and deposits inched up 3.15 per cent to $54.65 million. Remittances for investment in equity/debt increased 6.15 per cent Y-o-Y.

 

While the remittances for medical treatment slipped 12.27 per cent, funds for maintenance of close relatives grew 0.54 per cent to $322.54 million. The remittances for 'gifts' segment dropped 14.2 per cent Y-o-Y to $233.3 million. 

 

In April-May FY26 period, India’s outward remittances under LRS fell 1.87 per cent to $4.79 billion against $4.71 billion in the year ago period.