LRS – Overseas Money Transfers Rise Moderately as Investments Record Strong Growth
LRS –Resident Indians increased their overseas remittances under the Liberalised Remittance Scheme (LRS) in May 2026, with total outward transfers rising 3.6 percent from a year earlier, according to the latest figures released in the RBI Bulletin. The overall amount sent abroad reached USD 2,396.42 million during the month, compared with USD 2,313.16 million recorded in May 2025.
Annual Remittances Approach USD 29 Billion
The Reserve Bank of India data showed that outward remittances under the LRS touched USD 28,979.36 million during the entire 2025-26 financial year, reflecting the continued use of the scheme by resident individuals for a range of approved overseas expenses. Compared with the previous month, remittances in May recovered by 4.8 percent from USD 2,286.59 million in April 2026. However, the figure remained below the USD 2,594.87 million reported in March 2026, indicating some moderation after the financial year-end.
Travel Continues to Lead Overseas Spending
Travel remained the biggest contributor to overseas remittances despite a decline compared with the previous year. Payments related to travel stood at USD 1,282.63 million in May 2026, down from USD 1,389.23 million in May 2025, representing a year-on-year decrease of 7.6 percent.
Among various travel-related categories, spending classified as other travel accounted for the largest share at USD 831.44 million. This segment includes personal holiday expenses as well as settlements of eligible international credit card transactions. Education-related travel contributed USD 422.97 million, while business travel accounted for USD 13.95 million. Pilgrimage-related remittances reached USD 10.13 million, and travel for medical treatment amounted to USD 4.13 million.
Overseas Investments Register Sharp Increase
One of the strongest areas of growth during the month came from overseas investments. Funds remitted toward equity and debt investments climbed sharply to USD 363.64 million, marking a substantial increase from USD 104.94 million recorded in the corresponding month last year.
Foreign bank deposits also registered healthy growth. Transfers for deposits held abroad increased to USD 118.12 million, more than doubling from USD 54.65 million in May 2025. The data points to stronger interest among resident individuals in diversifying financial assets beyond domestic markets within the limits permitted under the Liberalised Remittance Scheme.
Transfers for Family Support and Gifts Ease
While investment-related remittances strengthened, some personal transfer categories recorded lower volumes. Money sent abroad for the maintenance of close relatives declined to USD 289.11 million from USD 322.54 million a year earlier. Likewise, remittances made as gifts fell to USD 201.50 million compared with USD 233.30 million during the same period last year.
Other approved purposes under the scheme also accounted for a smaller share of total outward transfers. Remittances for the purchase of immovable property stood at USD 35.76 million. Funds sent for studies abroad were recorded at USD 92.61 million, while medical treatment outside India accounted for USD 4.92 million. Donations represented the smallest category, with outward remittances of USD 0.69 million in May 2026.
The latest RBI figures highlight a steady expansion in overall outward remittances, supported by stronger overseas investment activity even as travel-related spending and certain personal transfer categories witnessed a decline compared with the previous year.