Indians remitted close to $2 billion in November under the Reserve Bank of India’s (RBI’s) liberalised remittance scheme (LRS), latest data released by the central bank showed.
Outward remittances under the scheme jumped 29 per cent to $1.99 billion compared to $1.54 billion in the year-ago month. Sequentially, outward remittances under the scheme were up about 3.5 per cent.
International travel continued to remain over 50 per cent of the entire outward remittance by Indians under the scheme. In November, outward remittances for international travel touched $1.03 billion, up 2.25 times from the year-ago period. In 2021, international travel was marred by Covid-related restrictions but slowly picked up later.
After international travel, Indians spent most on maintenance of close relatives, followed by gifts, overseas education. According to the RBI data, outward remittance for maintenance of close relatives was $305.35 million in November, followed by $220.90 million on gifts, and $211.65 million for overseas education.
According to the scheme introduced in 2004, all resident individuals, including minors, are allowed to freely 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 macro and micro economic conditions.
In FY23 so far (till November), Indians have remitted around $17.28 billion in outward remittances under the scheme. Outflows may touch an all-time high at the end of this financial year, aided by the rise in international travel.
In FY22, outflows at $19.61 billion hit an all-time high, aided by overseas education and international travel. In FY21, outward remittances were badly hit as the pandemic-related restrictions shut down international travel for a long period of time. In FY21, under the scheme, India’s remittances stood at $12.68 billion, down 32.38 per cent from FY20, where remittances were $18.76 billion.
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