Outward remittances under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS) grew 3.6% year-on-year (Y-o-Y) to $2.39 billion in May 2026, up from the previous year and reflecting a 4.8% month-on-month (M-o-M) increase over April ($2.28 billion).
The growth was primarily propelled by a massive uptick in Indian resident individuals parking funds in overseas bank deposits and offshore stock/bond markets, offsetting notable drops in international travel and study-abroad spending.
Breakdown of Key Outward LRS Segments (May 2026)
While discretionary spending on foreign trips and education pulled back, capital account investment inflows into global assets showed sharp acceleration.
1. Investment & Capital Transfers Jump
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Equity & Debt Assets: Remittances for offshore stocks, mutual funds, and bonds more than doubled Y-o-Y to $363.6 million.
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Overseas Bank Deposits: Funds transferred to foreign bank accounts more than doubled Y-o-Y to $118.12 million.
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Immovable Property: Remittances to buy real estate abroad declined 14.22% Y-o-Y to $35.76 million.
2. Travel & Overseas Education Decline
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International Travel: Remittances for foreign travel—historically the largest component under LRS—fell 7.7% Y-o-Y to $1.28 billion. Higher Tax Collected at Source (TCS) rules and shifting domestic/regional travel preferences continued to weigh on figures.
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Overseas Education: Remittances for foreign university tuition and living costs slumped 38% Y-o-Y to $92.61 million, reflecting tighter visa policies in key markets like Canada, Australia, and the UK.
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Gifts: Remittances classified as gifts to non-residents fell 13.6% Y-o-Y to $201.5 million.
Cumulative Trend: April–May FY27 Performance
Despite the single-month bounce in May, cumulative LRS remittances for the first two months of the 2026–2027 financial year (April–May) remained down 2.33% Y-o-Y at $4.68 billion.
| Segment / Indicator | April–May FY27 Value | Y-o-Y Growth Rate | Primary Driver |
| Total LRS Outflows | $4.68 Billion | -2.33% | Moderation in consumer spending categories |
| International Travel | $2.44 Billion | -8.0% | Higher TCS implications and travel moderation |
| Overseas Education | $256.17 Million | -18.3% | Stricter student visa caps in major Western nations |
| Equity & Debt Investment | $603.30 Million | +95.6% | Indian retail investors diversifying globally |
| Foreign Bank Deposits | $212.90 Million | +43.0% | Yield opportunities and foreign currency allocations |
LRS Regulatory Context: First established in 2004 with a limit of $25,000, the RBI’s Liberalised Remittance Scheme currently allows all resident individuals (including minors) to freely remit up to $250,000 per financial year (April–March) for permissible current and capital account transactions.
