Outward remittances under RBI's LRS decline 3.19% in January 2026

Outward remittances under RBI's LRS declined 3.19 per cent to $2.68 billion in January 2026, with lower education and deposit outflows partly offset by rising overseas investments

Outward remittances under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) reduced by 3.19 per cent year-on-year (YoY) in January 2026 to $2.68 billion owing to moderation in remittances across segments except for certain overseas investments. In January 2025, the remittances under the scheme stood at $2.77 billion.

 

According to the monthly data, international travel, which accounted for over 60 per cent of the entire outward remittances by Indians under the scheme, remained flat at $1.66 billion as against $1.65 billion in January 2025.

 

Remittances for overseas education declined 27.37 per cent YoY to $267.42 million from $368.21 million. Those for deposits saw a 16.49 per cent YoY decline to $48.6 million in the month, while remittances for gifts dropped by 20.17 per cent YoY to $185.82 million.

 

 

At the same time, remittances for the purchase of immovable property rose by 67.68 per cent YoY to $57.33 million, and those for investment in equity or debt markets rose by 70.38 per cent YoY to $178.85 million. Similarly, remittances for medical treatment rose by 4.70 per cent YoY to $4.68 million.

 

As per 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 macroeconomic and microeconomic conditions.

 

In the April–January period of FY26, remittances moderated by 4.01 per cent YoY to $24.04 billion from $25.05 billion in the same period last year, dragged down by a drop in remittances for overseas education and medical treatment. Overseas investment and remittances for international travel bucked the decline during the year.