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Outward remittances under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) fell 60.45 per cent month-on-month (M-o-M) in October to $2.17 billion from $3.50 billion in September, according to RBI’s latest data.
October is generally considered as the festival month.
During the August-October quarter of financial year 2024, Indians remitted $9.05 billion overseas, as compared to $7.26 billion in the second quarter of FY24.
According to the RBI monthly bulletin for October, the remittances were 13.14 per cent higher year-on-year (Y-o-Y) in comparison to $1.92 billion in the year-ago period.
According to the monthly data, international travel, which accounted for over 60 per cent of the entire outward remittance by Indians, rose by 40.62 per cent Y-o-Y to $1.37 billion. It was $0.97 billion in the same period of FY23.
Remittances for the purchase of immovable property dropped by nearly 27.88 per cent to $11.02 million in the period under review, from $15.28 million in the year-ago period.
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At the same time, investments in the equity and debt markets saw a 24.73 per cent Y-o-Y fall to $83.86 million from $111.41 million. Remittances for deposits declined to $26.28 million from $64.28 million in the year-ago period.
During the month under review, outward remittances by Indians under maintenance of close relatives also declined by 26.55 per cent to $206.16 million from $280.67 million. Gifts slipped to $184.79 million from $208.11 million.
Similarly, the amount for medical treatment rose to $8.53 million and studies abroad inched up to $269.11 million during the time period under consideration.
On the other hand, during September-October 2023, the outward remittances for travel declined by 28.93 per cent to $1.37 billion.
Deposits saw a steep decline of nearly 351 per cent to $26.28 million from $118.56 million in September.
Similarly, a de-growth of over 100 per cent was seen across purchase of immovable property, investments in equity and debt and amounts remitted for maintenance of close relatives across the time period.
According to the LRS scheme introduced in 2004, all resident individuals, including minors, are allowed to 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 the prevailing macro and micro economic situation.
