Outward LRS remittances rise 3.6% to $2.39 billion in May 2026: RBI

Higher overseas investments and deposit-related remittances lifted outward LRS flows in May, although spending on travel and overseas education declined

Outward remittances under the Liberalised Remittance Scheme (LRS) for resident individuals grew 3.6 per cent year-on-year (Y-o-Y) to $2.39 billion in May 2026, driven by a surge in overseas investments, according to Reserve Bank of India (RBI) data.

 

The data showed that deposit-related remittances more than doubled to $118.12 million in May, compared with the same month last year. Similarly, remittances for the purchase of equity and debt investments more than doubled to $363.6 million. However, remittances for the purchase of immovable property fell 14.22 per cent Y-o-Y to $35.76 million.

 

The largest component, travel-related remittances under the LRS, slipped nearly 7.7 per cent Y-o-Y to $1.28 billion.

 

 

Similarly, remittances for overseas education declined 38 per cent Y-o-Y to $92.61 million, while remittances under the 'gift' category fell 13.6 per cent Y-o-Y to $201.5 million.

 

Outward remittances also increased 4.8 per cent month-on-month from $2.28 billion in April.

 

The LRS was introduced in 2004, allowing resident individuals to remit up to $250,000 per financial year for any permissible current or capital account transaction, or a combination of both. The scheme was initially introduced with a limit of $25,000, which has been revised upwards over time.

 

However, outward remittances declined 2.33 per cent Y-o-Y to $4.68 billion during the April-May period of FY27, led by an 8 per cent fall in travel-related remittances to $2.44 billion and an 18.3 per cent decline in overseas education-related remittances to $256.17 million. At the same time, remittances for deposits rose 43 per cent Y-o-Y to $212.9 million, while remittances for the purchase of equity and debt investments surged 95.6 per cent Y-o-Y to $603.3 million.