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According to RBI Data Outward Remittances Under LRS Dip by 6.85% to USD 29.56 Billion in FY25.

Banking & Finance | Dated: 27 May 2025

According to the Reserve Bank of India (RBI)’s latest data released in May 2025, outward remittances under its Liberalised Remittance Scheme (LRS) declined by 6.85% Year-on-Year (Y-o-Y) to USD 29.56 billion in Financial Year 2024-25 (FY25), compared to USD 31.74 billion recorded in FY24.

🎯 Key Highlights:

  • - RBI cited key factors contributing to this decline in FY25: global uncertainty, stagnant domestic income growth, and a high base effect.
  • - However, the same RBI data revealed that outward remittances increased by 10.65% Year-on-Year (Y-o-Y) to USD 2.55 billion in March 2025, primarily driven by growth in international travel.
  • - The data highlighted that most major components of LRS registered growth except remittances for studies abroad and medical treatment, which declined by 18.77% and 56.30% Y-o-Y, respectively.

💡 Other Important Facts:

  • (i) As per RBI’s data, the overall drop in outward remittances is mainly attributed to a 16% decrease in funds remitted by students for studies abroad, falling from USD 3.48 billion (FY24) to USD 2.92 billion (FY25).
  • (ii) The data also indicated that international travel remittances, which make up nearly 60% of outward remittances, decreased marginally by 0.25%, from USD 17 billion (FY24) to USD 16.96 billion (FY25).

📚 Test Your Knowledge:

Recently, by what percentage did outward remittances under the Liberalised Remittance Scheme (LRS) decline in FY25, according to RBI data?

Correct Answer: 6.85%

🚀 Quick Recap:

About Reserve Bank of India (RBI)

  • Governor : Sanjay Malhotra (26th)
  • Headquarter : Mumbai