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.