Outward forex remittances under the Reserve Bank of India’s liberalised remittance scheme (LRS) hit an all-time high in fiscal 2022 as Indians splurged on overseas education and international travel, reported Business Line.
Indians sent $19.61 billion abroad in FY22, surpassing even the pre¬Covid high remittances of $18.76 billion in FY20, according to latest RBI data.
In FY21, outward remittances had declined to $12.68 billion as the pandemic and the consequent restrictions hit overseas travel and education, wrote BL.
Under LRS, resident individuals (including minors) are allowed to remit up to $2,50,000 per fiscal for permissible current or capital account transactions, or a combination of both.
Remittances are allowed for various purposes including overseas education, international travel, maintenance of close relatives, medical treatment, purchase of immovable property and investment in equity/debt, and gift or donation.
At $6.91 billion, travel accounted for a bulk of the remittances in FY22 as international travel picked up post opening up of borders. Travel remittances in FY22 were a shade lower than the $6.95 billion spent in FY20.
Similarly, remittances towards overseas education totalled $5.17 billion in FY22 surpassing the $4.99 billion in pre¬Covid FY20. Gifts, maintenance Indians were also generous when it came to gifting their beloved ones abroad.
Outward remittances towards ‘gift’ saw the highest increase in FY22 (at $2.34 billion) compared to FY20 ($1.59 billion). Indians also sent $3.3 billion towards ‘maintenance of close relatives’ in FY22.
Remittances towards deposits in FY22 stood at $830 million ($623 million in FY20), while investments in equity/debt in FY22 stood at $747 million ($431 million).