Outward remittances under LRS rise 10.6% in October, shows RBI data

Outward remittances under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) rose 10.6 per cent year-on-year (Y-o-Y) in October to $2.4 billion from $2.17 billion in the year-ago period as growth in international travel moderated, according to the RBI’s latest data.

 

In the August-October quarter of financial year 2024, Indians remitted $8.37 billion overseas, compared to $9.05 billion during the same period last year.

 

According to the monthly data, international travel, which accounted for over 60 per cent of the entire outward remittance by Indians under the scheme, rose by 6.26 per cent Y-o-Y to $1.45 billion from $1.36 billion in the same period of FY23.

 

Remittances for the purchase of immovable property surged nearly 126 per cent to $24.96 million from $11.02 million in the year-ago period. At the same time, investments in the equity and debt markets saw a 78.08 per cent Y-o-Y rise to $149.34 million from $83.86 million. Remittances for deposits rose to $39.06 million from $26.28 million in the year-ago period.

 

During the month under review, outward remittances by Indians for the maintenance of close relatives increased by 37.64 per cent to $283.75 million from $206.16 million, while remittances for gifts rose to $216.3 million from $184.79 million.

 

Similarly, the amount for medical treatment slightly dipped to $8.49 million, while remittances for studies abroad increased to $221.18 million during the time period under consideration.

 

As per the LRS, 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 prevailing macroeconomic and microeconomic conditions.