India sees 16% decrease in outward remittances under LRS in May 2024

Outward remittances from India under the liberalised remittance scheme (LRS) fell 16% year on year, data from the Reserve Bank of India (RBI) shows. Indians remitted a total of $2.42 billion in May 2024 down from $2.88 billion a year ago.

Remittances from almost all heads fell year on year with bank deposits abroad almost halving to $53 million in May 2024 from $100 million in May 2023. Remittances for maintenance of close relatives aboard also fell 53% to $321 million from $491 million a year ago and was the lowest in at least three months.

Remittances as gifts to friends and relatives abroad also fell 44% to $272 million from $391 million a year ago. Travel continued to be the largest chunk of foreign currency outflows at $1.40 billion down from the $1.49 billion of total outflows in May 2023 data from the central bank’s monthly bulletin showed.