Surge in Outward Remittances: LRS Transactions on the Rise in 2026

Outward remittances under the Liberalised Remittance Scheme increased by 3.6% to USD 2,396.42 million in May 2026. Travel topped the spending categories, while investments in equity and bank deposits also surged. Other sectors, such as education and property, saw modest fluctuations according to data from the RBI Bulletin.

In a significant financial update, outward remittances under the Liberalised Remittance Scheme (LRS) for resident individuals experienced a 3.6% year-on-year rise, reaching USD 2,396.42 million in May 2026. The Reserve Bank of India's latest bulletin highlighted an increase from USD 2,313.16 million reported in May 2025, with total outflows for the 2025-26 fiscal year reaching USD 28.9 billion.

Travel expenses continued to dominate the foreign remittance landscape, amounting to USD 1,282.63 million in May 2026, marking a 7.6% decrease compared to the previous year. Within this, 'other travel'—encompassing holiday trips and international credit card settlements—registered USD 831.44 million.

The period also saw substantial growth in overseas investments and bank deposits, with equity and debt investments soaring to USD 363.64 million from the prior year's USD 104.94 million, and foreign bank deposits doubling. Meanwhile, remittance flows for close relatives and gifts saw declines.