According to RBI Data Outward Remittances Under LRS Dip by 6.85% to USD 29.56 Billion in FY25.

Banking & Finance

According to the Reserve Bank of India (RBI)’s latest data released in May 2025, outward remittances under its Liberalised Remittance Scheme (LRS) declined by 6.85% Year-on-Year (Y-o-Y) to USD 29.56 billion in Financial Year 2024-25 (FY25), compared to USD 31.74 billion recorded in FY24.


      - RBI cited key factors contributing to this decline in FY25: global uncertainty, stagnant domestic income growth, and a high base effect.

      - However, the same RBI data revealed that outward remittances increased by 10.65% Year-on-Year (Y-o-Y) to USD 2.55 billion in March 2025, primarily driven by growth in international travel.

      - The data highlighted that most major components of LRS registered growth except remittances for studies abroad and medical treatment, which declined by 18.77% and 56.30% Y-o-Y, respectively.

Main Point :-   (i) As per RBI’s data, the overall drop in outward remittances is mainly attributed to a 16% decrease in funds remitted by students for studies abroad, falling from USD 3.48 billion (FY24) to USD 2.92 billion (FY25).

      (ii) The data also indicated that international travel remittances, which make up nearly 60% of outward remittances, decreased marginally by 0.25%, from USD 17 billion (FY24) to USD 16.96 billion (FY25).


About Reserve Bank of India (RBI)

Governor : Sanjay Malhotra (26th)
Headquarter : Mumbai
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