Outward remittances by individuals jumped 158 per cent during June this year to $145 million mainly on account of higher outgo on foreign education.
According to the latest data released by the Reserve Bank of India (RBI), remittances for overseas studies accounted for 61.59 per cent of the total outgo under the liberalised remittance scheme that enables individuals to send up to $200,000 (around Rs 98 lakh) annually for specified activities without seeking prior approval.
While the data related to foreign education for June 2008 was unavailable, a bulk of the outgo under this head was estimated to have taken place during August 2008. Till last year, a break up for the 'others' category was unavailable. In August 2008, outward remittances were estimated at $157.7 million, of which $123.6 million, or 78.38 per cent, was in the 'others' category.
While banks, which provide a large part of the funding to students going overseas, were unable to provide any specific reason for the surge in June, education consultants said that students might not be willing to take chances and were paying up earlier.
Said Harsh Joshi, a senior education consultant at Study Overseas, "If students pay the tution fee upfront, the likelihood of them getting visas become higher."
Overseas investments in equity and debt remained flat at $14.8 million in June 2009 as compared to $14.9 million in June 2008. Overseas investments, which had dropped to a low of $6.8 million in February 2009, has picked up in recent months on signs of stability.
At the same time, deposits overseas declined to $3.2 million as against $4.1 million in the same period last year due to lower rates.
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