Outward remittances under LRS fell to its lowest in November in FY26

Outward remittances under RBI's LRS fell to the lowest level of FY26 in November, as overseas travel and education spending by Indians moderated

Outward remittances under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) dropped to its lowest level in the month of November during the ongoing financial year 2025-26 (FY26).

 

It slipped 0.47 per cent year-on-year (Y-o-Y) in the month to $1.94 billion from $1.95 billion in the year ago period due to moderation in overseas travel and education related remittances.  

 

According to the latest data released by RBI, remittances moderated by 4.3 per cent Y-o-Y in the April-November period (FY26) to $19.10 billion from $19.97 billion last year.

 

According to the RBI Bulletin, for November, the international travel which accounted for over 60 per cent of the entire outward remittance by Indians under the scheme slipped by 1.11 per cent Y-o-Y to $1.10 billion as compared to $1.11 billion in November 2024.

 

While, the remittances for overseas education dropped to 29.85 per cent Y-o-Y to $120.94 million.

 

According to experts, the remittances are usually stronger in September and October driven by education-related payments and November acts as a short break after this peak. Later, in December due to the holiday season, international travel and related remittances gather pace.

 

According to Pavan Kavad, managing director, Prithvi Exchange, “Global uncertainty, including geopolitical tensions earlier

 

in the year and slowdown in education across key markets like the US, the UK, and Canada has affected remittances. While, investments abroad have nearly doubled from the same time last year as investors are looking to hedge their positions and exploring global markets for better opportunity.”

 

According to the LRS scheme introduced in 2004, all resident individuals, including minors, are allowed to remit up to $250,000 per financial year for any permissible current or capital account transaction or a combination of both. Initially, the scheme was introduced with a limit of $25,000. The LRS limit has been revised in stages consistent with the prevailing macro and micro economic conditions.

 

In the month, the remittances for the purchase of immovable property surged nearly 98.51 per cent to $46.71 million from $23.5 million in the year ago period.

 

At the same time, the investments in the equity and debt market saw a 102.9 per cent Y-o-Y rise to $174.04 million from $85.79 million. The remittances for deposits slipped to $3.51 per cent million from $38.8 million in the year ago period.

 

According to the RBI data, during the month under review, outward remittance by Indians under maintenance of close relatives also dropped by 10.31 per cent to $248.25 million from $276.78 million whereas for gifts moderated to $194.33 million from $216.5 million.

 

Remittances for medical treatment dropped to $4.7 million during the time period under consideration.

 

In the April-November period of FY26, the drop in remittances has been mainly attributed to 5.94 per cent Y-o-Y drop in foreign travel related remittances and 22.48 per cent Y-o-Y fall in education abroad. However, the growth in overseas investment has helped to buck the trend.