Outward remittances under the Reserve Bank of India’s (RBI) liberalised remittance scheme (LRS) rose in May 2023 to $2.88 billion as compared to $2.33 billion in April, mainly due to an uptick in travel spend.
People in India spent close to $1.5 billion on international travel in May, against $1.10 billion in April.
The remittance under travel head was also substantially higher from about $1 billion in May 2022, according to data released by the RBI in its monthly bulletin for July.
The outward remittances under LRS rose strongly by 41.58 per cent on a year-on-year (YoY) basis, in May, from $2.03 billion in May 2022. Resident Indians remitted $27.14 billion in FY23 under LRS.
After international travel, people spent most on maintenance of close relatives ($490 million) followed by gifts ($390 million), and studies abroad ($247 million) in May.
The LRS scheme, which was introduced in 2004, permits all individuals residing in India to transfer up to $250,000 per financial year for various types of transactions, involving current or capital accounts, regardless of age.
Also Read
Outward remittances under LRS scheme near $2 billion in Nov: RBI
Outward remittance in April-December almost equal to FY22 figure: RBI
Outward remittances under LRS scheme fall slightly in April to $2.33 bn
Outward remittances under RBI's LRS in April-January surpass FY22
Remittances decline 23% sequentially to $2.1 billion in February
As food prices spiral, fight against inflation far from over: RBI report
Manufacturing sentiment positive in first quarter, shows Ficci survey
135 mn people escaped multidimensional poverty in 5 yrs: NITI Aayog report
Sitharaman-Yellen talks blend bilateral issues with G20 priorities
Goyal launches sale of subsidised chana dal under 'Bharat Dal' brand'