LRS Outward Remittances Rise 3.6% to USD 2.40 Billion in May 2026: RBI Data

Outward remittances by resident individuals under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) increased to USD 2,396.42 million in May 2026. This represented year-on-year growth of 3.6% compared with USD 2,313.16 million recorded in May 2025, according to data published in the RBI Bulletin.

On a sequential basis, LRS outflows rose by approximately 4.8% from USD 2,286.59 million in April 2026. However, the May total remained below the USD 2,594.87 million reported in March 2026. Cumulative remittances during the entire financial year 2025–26 amounted to USD 28,979.36 million, equivalent to approximately USD 28.98 billion.

Travel continued to account for the largest proportion of outward remittances. Residents remitted USD 1,282.63 million for travel purposes in May 2026, down approximately 7.6% from USD 1,389.23 million in the corresponding month of the previous year.

Other travel expenses—including holiday-related expenditure and payments made to settle international credit card transactions—formed the biggest component within the travel category at USD 831.44 million. Education-related travel accounted for USD 422.97 million, while business travel stood at USD 13.95 million. Remittances associated with pilgrimage and medical travel were recorded at USD 10.13 million and USD 4.13 million, respectively.

Overseas investment outflows registered substantial growth during the month. Remittances for acquiring equity and debt instruments increased to USD 363.64 million in May 2026 from USD 104.94 million a year earlier. Deposits placed with foreign banks also rose to USD 118.12 million, compared with USD 54.65 million in May 2025.

In contrast, remittances for maintaining close relatives overseas declined to USD 289.11 million from USD 322.54 million. Gifts sent abroad decreased to USD 201.50 million from USD 233.30 million during the same comparative period.

Other reported LRS outflows included USD 92.61 million for overseas studies, USD 35.76 million for purchasing immovable property, USD 4.92 million for medical treatment and USD 0.69 million for donations. CA Sansaar