• Notification Date: 20-02-2025
• Notification No: N/A

Outward Remittances Under RBI’s LRS Drop 10% to $22.82 Billion in 9MFY25

Outward remittances through India's Liberalised Remittance Scheme (LRS) have seen a sharp fall of 10.15% in the initial nine months of FY25 at $22.82 billion, compared to $24.80 billion in the same period of previous year. The reason for the decline is reductions in significant sectors like deposits, maintenance of close relatives, and foreign travel.

The highest category of remittance, travel abroad, fell modestly by 2.23% from $13.40 billion in FY24 to $13.10 billion. Deposits remittance fell by a shocking 43% to $422.28 million from $738.12 million. Maintenance of close relatives even fell by 25.2% to $2,757 million. Gift remittance also fell by 21.38% to $2,215.5 million.

On the credit side, investment in debt and equity instruments saw a growth of 2.09% to $1,113.73 million. The overall fall apart, the LRS scheme is continuing to facilitate a large number of remittances by residents whereby they are allowed to transfer up to $250,000 per annum for permissible purposes such as education, health, and tourism.

The RBI introduced LRS in 2004, and it has since been evolved to fund a wide range of financial transactions.