Outward remittances under LRS drop 10% to $22.82 bn in 9MFY25: RBI

Outflows under the scheme were impacted by deposits, maintenance of close relatives, and the international travel segment, among others

Outward remittances under the Reserve Bank of India’s (RBI’s) Liberalised Remittance Scheme (LRS) dropped 10.15 per cent year-on-year (Y-o-Y) to $22.82 billion in the April-December period of 2024-25 (FY25), dragged down by declines across major segments.

 

Outflows under the scheme were affected by a drop in deposits, maintenance of close relatives, and the international travel segment, among others.

 

According to the latest RBI data, the amount remitted under LRS stood at $22.82 billion in the nine-month period ended December 2024, compared to $24.80 billion in the same period last year.

 

Outward remittances increased 3.3 per cent Y-o-Y in the third quarter (Q3) of 2023-24 (FY24) to $6,670.4 million from Q3FY24.

 

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. Initially, the scheme had a limit of $25,000, which was gradually revised.

 

In the nine-month period of FY24, remittances for deposits dropped 43 per cent Y-o-Y to $422.28 million from $738.12 million in the year-ago period.

 

Similarly, remittances for the maintenance of close relatives declined nearly 25.2 per cent to $2,757 million, while those for gifts fell 21.38 per cent to $2,215.5 million.

 

Meanwhile, the largest segment in outward remittances, international travel, slipped 2.23 per cent Y-o-Y to $13.10 billion from $13.40 billion in the year-ago period. However, remittances for investments in equity and debt instruments rose 2.09 per cent Y-o-Y to $1,113.73 million.