Outward remittances under Reserve Bank of India's LRS drop 8.6% in Apr-Jan

Outward remittances under the Reserve Bank of India’s (RBI’s) Liberalised Remittance Scheme (LRS) in the April-January period of financial year 2023-24 (FY24) dropped 8.64 per cent year-on-year to $25.05 billion from $27.42 billion in the year ago period dragged down by declines across major segments.

 

The LRS scheme 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 April-January period of FY25, the largest segment - international travel segment slipped marginally to $14.75 billion, from $14.95 billion in the year-ago period. This moderation was coupled with a drop in growth of funds used for the maintenance of close relatives and overseas education, which stood at $3.06 billion and $2.58 billion, respectively. Remittances for deposits abroad also dropped by 37 per cent to $480.48 million from last year.

 

While, overseas remittances in January 2025 increased 5.7 per cent YoY to $2.77 billion from $2.62 billion in the last year. 

 

In January, there was growth across major segments including international travel which increased to $1.64 billion compared to $1.55 billion in the same month last year. Similarly, remittances for maintenance of close relatives, investments increased. However, remittances under the scheme for overseas education have dropped down to $368.21 million.