RBI Data Shows 8.2% Decline in Outward Remittances Under LRS During April to February.
Banking & Finance
Outward remittances under the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS) during April 2024 to February 2025 in Financial Year (FY)25 remained lower compared to the same period last year. The remittances recorded a year-on-year (Y-o-Y) decline of 8.21 per cent, falling to USD 27.02 billion from USD 29.43 billion in the previous year.
- International travel, which is the largest component under LRS, saw a marginal drop of about 1 per cent. Remittances under this segment declined to USD 15.84 billion in April–February FY25 from USD 16 billion in the same period last year. Meanwhile, remittances for the maintenance of close relatives registered a sharp fall of nearly 22 per cent, declining to USD 3,300.5 million.
- Funds sent overseas for educational purposes also witnessed a notable drop. Remittances for overseas education fell by 16 per cent to USD 2,758.9 million compared to the same period last year, highlighting a significant reduction in this segment.
- Interestingly, remittances for the purchase of immovable property abroad rose by 28.32 per cent, reaching USD 277.7 million. In addition, investments in equity and debt under the LRS increased by 8.27 per cent to USD 1,392.55 million during the same period.
Main Point :- (i) In February alone, outward remittances fell by 2.44 per cent year-on-year to USD 1.96 billion from USD 2.01 billion in February 2024. This reflects a moderate decline in overall monthly remittance activity under the scheme.
(ii) Despite the overall dip, the international travel segment grew by 3.5 per cent in February 2025, with remittances rising to USD 1.09 billion from USD 1.05 billion a year ago. However, remittances for overseas education declined sharply by 26.19 per cent to USD 182.17 million, and funds for maintenance of close relatives dropped by 11.78 per cent to USD 235 million.
(iii) The Liberalised Remittance Scheme was launched in 2004, initially with a remittance limit of USD 25,000. Over time, the limit has been revised in stages and currently allows all resident individuals, including minors, to remit up to USD 250,000 per financial year for permissible current or capital account transactions, or a combination of both.
About RBI
Governor : Sanjay Malhotra
Headquarter : Mumbai
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