Context:
As per the Reserve Bank of India’s latest monthly bulletin, outward remittances under the Liberalised Remittance Scheme (LRS) fell by 4.4% year-on-year in May 2025, amounting to $2.3 billion, compared to the same month in 2024. The fall was primarily driven by reduced spending on international travel and overseas education.
About Liberalised Remittance Scheme (LRS)
A scheme by RBI allowing Indian residents to send up to $250,000 abroad per financial year for various permitted purposes without seeking prior approval.
- Launched: 2004
- Purpose: Allows resident individuals to remit funds for permissible current or capital account transactions (travel, education, gifts, investments, etc.)
