Outward remittances under the Liberalised Remittance Scheme (LRS) for resident individuals surged nearly 19.9 per cent year-on-year (YoY) in June 2026 to $2.5 billion, owing to a rise in international travel and overseas investments, according to Reserve Bank of India (RBI) data.
The data showed that during the month, deposit-related remittances rose 67.95 per cent YoY to $70.74 million compared with June 2025. Similarly, remittances for the purchase of equity/debt investments more than doubled to $456.7 million. Remittances for the purchase of immovable property also rose 31.5 per cent YoY to $49.66 million.
The largest component – travel-related remittances under the LRS – rose nearly 10.7 per cent YoY to $1.37 billion compared with last year.
Madan Sabnavis, chief economist, Bank of Baroda, said, “June is the time of holiday and due to which travel segment has seen a substantial surge supporting the overall remittances. However, the growth is periodical and is not likely to sustain.”
Similarly, remittances for overseas education were down 30.3 per cent YoY to $96.76 million, while those for ‘gifts’ rose 11 per cent YoY to $211.5 million.
The LRS was introduced in 2004, allowing all resident individuals to remit up to $250,000 per financial year for any permissible current or capital account transaction, or a combination of both, free of charge. In the initial phase, the scheme was introduced with a limit of $25,000, which was gradually revised.
Remittances rose 4.5 per cent YoY in the April-June period of FY27 to $7.23 billion, led by investment in equity/debt, which doubled to $1.06 billion, and a 48.6 per cent YoY rise in deposit-related remittances to $283.65 million. At the same time, remittances for the purchase of immovable property rose 8.45 per cent YoY to $134.6 million, while travel-related remittances were down 2.25 per cent YoY to $3.8 billion.
