Further, in the April-February period, outward remittances under LRS amounted to $24.18 billion, an all-time high.
In FY21, outward remittances were badly hit as pandemic-related curbs shut down international travel for a long period of time. In FY21, under the scheme, India’s remittances stood at $12.68 billion, down 32.38 per cent from FY20, where remittances under LRS were $18.76 billion.
After international travel, Indians spent most on maintenance of close relatives, followed by gifts, and overseas education. According to the RBI data, in February 2023, outward remittance by Indians under the scheme for overseas education was $229.34 billion, followed by $323.43 million for maintenance of close relatives, and $245.31 million as gifts.
According to the LRS scheme, which was introduced in 2004, all resident individuals, including minors, are allowed to freely remit up to $250,000 per financial year for any permissible current or capital account transaction or a combination of both. Initially, the scheme was introduced with a limit of $25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.